Trump's Tax Bill: A $2.8 Trillion Debt Bombshell Unmasked
- 1 Min
Exploration finds Trump's fiscal policy could generate colossal U.S. debt figures in trillions - Increased federal debt potential due to Trump's tax plan
The ol' "Big Beautiful Bill," President Donald Trump's reinterpretation of tax reform, has taken a unexpected hit. According to the nonpartisan Congressional Budget Office (CBO), the bill would swell the US budget deficit by an estimated $2.8 trillion over the next decade, including the positive economic effects. That's a whopping $3 trillion, when accounting for interest costs, if you're keeping track.
But don't let the Republican party fool you! They're peddling the tale that the comprehensive package will enhance the US economy god knows how, and thus, reduce the national debt through higher revenues. Your boy, Senate Republican leader John Thune, even had the audacity to claim, "It will lead to a stronger and wealthier America."
Let's take a look at the bill's finer points. The House of Representatives passed the act back in May, christened the "One Big Beautiful Bill Act." As we stand now, the senators are haggling over a revised version. But remember, for the bill to turn into law, both chambers of Congress gotta come to a happy agreement, and, eventually, it'll have Trump's John Hancock.
To cover the cost of the massive tax cuts from Trump's first term, which are set to expire at the end of this year, we're gazing at drastic cuts to the healthcare program Medicaid. Low-income and elderly individuals, brace yourself.
Wanna know the nitty-gritty details? The bill sets out to make the 2017 Trump tax cuts permanent, bumps up the standard deduction, maintains and expands the Child Tax Credit, slaps some goodies on overtime workers, and offers perks to seniors. Catch the full scoop in the enrichment section below, if you're keen.
- Tax Bill
- Donald Trump
- USA
Insights:
- The proposed tax bill, known as the "One Big Beautiful Bill," includes various key components like making the 2017 Trump tax cuts permanent and offering targeted tax relief to families, workers, and seniors.
- The bill aims to increase the standard deduction, maintain and expand the Child Tax Credit, and includes specific tax relief measures for overtime workers, car loan interest, seniors, and 529 education savings accounts, among others.
- To offset the cost of these tax cuts, the bill invokes drastic cuts to the healthcare program Medicaid.
- The bill has passed the House of Representatives but is under debate in the Senate as of late May 2025. The final passage will require the agreement of both chambers and approval from President Trump.
- The Senate GOP plan within the bill would permanently increase the estate and lifetime gift tax exemption to $15 million for single filers and $30 million for joint filers starting in 2026.
- The Senate Finance Committee's reconciliation version estimates a conventional revenue loss of $4.8 trillion between 2025 and 2034, and a dynamic revenue loss (including economic growth) of $3.9 trillion over the same period. Even though economic growth could offset about 19% of the revenue loss, a substantial increase in deficits and debt is still expected.
- The 'One Big Beautiful Bill', a tax reform proposition by President Donald Trump in the USA, has key components such as making the 2017 Trump tax cuts permanent, offering tax relief to families, workers, and seniors, and increasing the standard deduction.
- To cover the cost of the proposed tax cuts, the bill underscores drastic cuts to the healthcare program Medicaid, necessitating careful budgeting and policy-and-legislation considerations in the realm of politics and general-news.
- The Senate version of the bill, still in debate as of late May 2025, permanently enhances the estate and lifetime gift tax exemption to $15 million for single filers and $30 million for joint filers from 2026, as part of the policy-and-legislation process.
