Tags: gop tax plan | cost | trilion

Tax Groups: GOP Plan Could Cost as Much as $2.7 Trillion

Image: Tax Groups: GOP Plan Could Cost as Much as $2.7 Trillion
Copies of the proposed Republican tax package are carried by House Ways and Means Committee staffer Thomas Kutz before the start of the markup session on the bill, on Capitol Hill in Washington, Nov. 6, 2017. (J. Scott Applewhite/AP)

By    |   Monday, 18 December 2017 04:55 PM

The price tag for the GOP tax bill would reportedly skyrocket to $2 trillion — and possibly as high as $2.7 trillion — if the legislation's temporary tax cuts are eventually made permanent.

Though the tax break in the Tax Cuts and Jobs Act that would slash the corporate rate from 35 percent to 21 percent is permanent, most of the legislation's proposed cuts for individuals automatically end in 2025.

But if future Congresses decide to extend the lower tax rates for individuals and families rather than allow them to expire — and also extend other temporary provisions — the bill will end up costing $2 trillion to $2.2 trillion, according to the deficit hawk group, Committee for a Responsible Federal Budget.

Even accounting for economic growth, the group predicts the bill would add $1.5 trillion to $1.7 trillion to the debt — bringing debt levels close to 100 percent of the nation's GDP.

"If expiring provisions are extended and late-stage tax hikes avoided, debt could reach as high as 98 percent or 100 percent of GDP by 2027," the non-partisan group said. "In other words, the national debt could exceed the size of the economy."

Congress's official scorekeeper, the Joint Committee on Taxation, estimated the bill would cost about $1.46 trillion over 10 years before factoring in economic growth.

In a separate report, the conservative-leaning Tax Foundation estimated that the tax plan, if made permanent, would cost $2.7 trillion on a static basis and $1.4 trillion using "dynamic" scoring that factors in growth.

"This change would increase the cost of the plan, but also increase the economic growth and dynamic revenue generated by the plan," the Tax Foundation said.

The think tank estimated if the tax cuts are not made permanent, the bill lowers federal revenue by $1.47 trillion on a static basis and $448 billion on a dynamic basis.

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The price tag for the GOP tax bill would reportedly skyrocket to $2 trillion - and possibly as high as $2.7 trillion -if the legislation's temporary tax cuts are eventually made permanent.
gop tax plan, cost, trilion
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Monday, 18 December 2017 04:55 PM
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