White House Challenges CBO’s Analysis of Trump’s Tax Bill, Asserts Deficit Reduction
The White House is disputing the Congressional Budget Office’s (CBO) assessment that President Donald Trump’s sweeping tax and spending package will significantly increase the federal deficit. The administration claims the CBO’s analysis is based on a flawed premise, as it assumes Republicans will fail to extend Trump’s 2017 tax cuts. Instead, the White House’s Office of Management and Budget (OMB) forecasts that the tax and spending measures would independently reduce deficits by $1.4 trillion.
According to the CBO, the so-called ‘big, beautiful, bill’ the House passed in May would increase the deficit by $2.4 trillion over the next 10 years. However, the White House argues that the OMB’s analysis considers the possibility of tax cuts being extended, leading to deficit reduction. The OMB also claims that the tax and spending measures, combined with tariffs and spending cuts, could reduce the deficit by at least $6.6 trillion over the next decade.
The measure faces criticism from various figures, including Tesla and SpaceX CEO Elon Musk, who criticized the bill as an ‘abomination.’ The bill now needs Senate approval, where some Republican senators, like Rand Paul, have expressed concerns about its potential impact on debt. OMB Director Russell Vought, citing economic growth and reduced deficits, has dismissed the CBO’s analysis as ‘fundamentally wrong.’ He warned that failure to pass the bill could lead to a recession and a significant tax burden on American citizens.
The White House has also accused the CBO of becoming overly partisan, pointing out that its staff has primarily supported Democratic candidates. CBO Director Phillip Swagel, who has served in former President George W. Bush’s administration, has drawn scrutiny over these political ties. The CBO has yet to respond to these allegations, maintaining its nonpartisan stance while continuing its analysis of the tax legislation’s economic impact.