The Republican tax bill under consideration on Capitol Hill would add $1.7 trillion to budget deficits over the next decade, the Congressional Budget Office said.
The CBO said Wednesday that the Joint Committee on Taxation had determined that the bill would directly increase deficits by $1.4 trillion but the cost of servicing the interest on that additional debt would boost that amount to $1.7 trillion. That amounts to about a 6 percent rise in the total federal debt held by the public, according to the CBO.
The higher amount is important because it exceeds the $1.4 trillion increase that Republicans allowed themselves in their budget resolution. As a result, Republican lawmakers may seek additional ways to increase revenue or otherwise decrease deficits too offset the tax cuts.
The CBO’s estimates, however, do not account for any additional economic growth that could arise from tax reform. As a result, its estimate does not count additional tax revenue that would accrue to the government in a stronger economy.