Trump Tax Bill Projected to add $2.4 Trillion to National Debt Says Report

A recent analysis from the non-partisan Congressional Budget Office (CBO) has revealed that former President Donald Trump’s flagship tax bill is expected to increase the United States’ national debt by £2.4 trillion over the next decade.

The legislation, often dubbed Trump’s “one big, beautiful bill”, aims to extend the tax cuts implemented in 2017 while introducing substantial spending reductions. According to the report, federal revenues are set to decrease by £3.67 trillion while spending cuts will amount to £1.25 trillion through to 2034. The national debt, currently standing at £36 trillion, is expected to further balloon as a result.

Among the most contentious aspects of the tax plan is its impact on healthcare coverage. The CBO anticipates that 10.9 million more Americans will be uninsured by 2034, including 1.4 million individuals who would lose access to state-funded healthcare due to their immigration status. The cost-cutting measures focus heavily on programmes like Medicaid and food assistance, drawing criticism from various quarters.

Tech entrepreneur Elon Musk has been an outspoken critic of the proposal. Referring to it as a “disgusting abomination” on his X platform, he lambasted the inclusion of what he perceives as excessive spending, calling for new legislation better aligned with fiscal sustainability. Musk stated that such a bill “should not massively grow the deficit or increase the debt ceiling by 5 TRILLION DOLLARS.”

Speaking to reporters, House Speaker Mike Johnson admitted there were disagreements with Musk, but he defended the bill as a historical achievement in spending reductions. Johnson highlighted that “no government in the history of mankind has ever cut £1.6 trillion in a single legislative measure.”

Passage of the bill has not been without complications. The House managed to narrowly approve it by a single vote, without any Democratic support. Meanwhile, some Republicans have expressed regrets over elements of the text they later discovered. Georgia Representative Marjorie Taylor-Greene admitted to missing a section on AI regulation, a provision that would have influenced her vote. Separately, Nebraska Representative Mike Flood reportedly overlooked details concerning federal judges enforcing contempt orders.

While Republican leaders hope for Senate approval by early July, the bill has faced increasing scrutiny about its broader implications. White House press secretary Karoline Leavitt dismissed the CBO findings, accusing the budget office of being “partisan and political.” She further claimed the office’s staff overwhelmingly leans Democratic in its political contributions.

The debate over the bill underscores ongoing tensions within Congress over balancing tax policy with long-term economic stability, with industry leaders and policymakers sharply divided on the best path forward.