Extending Trump’s Tax Cuts for the Wealthy Will Shrink the Economy, CBO Finds
“Far from unleashing record-breaking growth, the next Trump tax scam will make hardworking families worse off, shrink our economy, and blow a $4.6 trillion hole in the deficit”
Washington, D.C. – In a new dynamic estimate of the Trump tax law, the nonpartisan Congressional Budget Office (CBO) found that another round of Trump’s tax cuts for the ultrarich will shrink the United States economy over the long term.
As Congress gears up for the 2025 tax debate, Republicans are pushing for even more giveaways to the wealthy and big corporations, which, according to CBO’s previous work, would add $4.6 trillion to the deficit. The new analysis shows that by adding so much to the debt, Republicans’ tax giveaways to billionaires would crowd out private investment and reduce U.S. gross domestic product. Contrary to Republicans’ claims that their tax cuts for the wealthy and big corporations pay for themselves with economic growth—which economists across the political spectrum have resoundingly rejected—the cost of new handouts to the wealthy and well-connected would be even greater under dynamic scoring.
“The looting has begun. Far from unleashing record-breaking growth, the next Trump tax scam will make hardworking families worse off, shrink our economy, and blow a $4.6 trillion hole in the deficit,” said Senate Budget Chairman Sheldon Whitehouse (D-RI). “What a racket, to push for trillions in tax cuts so billionaires keep paying lower rates than nurses and plumbers, and then cite deficit concerns to rob families needing things like home heating or child care. Looting the treasury for megadonors is a rotten trick, and no amount of budgetary smoke and mirrors will hide it.”
Chairman Whitehouse has exposed how the Trump tax cuts for the wealthy and big corporations are driving up the national debt, how cracking down on wealthy tax cheats brings down the deficit, how the Trump tax law shipped jobs and profits overseas, how the wealthy and big corporations exploit loopholes to dodge taxes and hide profits offshore to evade paying what they owe, and how making the wealthy pay their fair share could ensure Medicare and Social Security solvency indefinitely.
He has long fought to de-corrupt the tax code and has introduced a number of bills to make the wealthy and corporations pay their fair share, including the:
- No Tax Breaks for Outsourcing Act (S.357), which would level the playing field for workers and small businesses by making sure multinational corporations pay the same tax rate on profits earned offshore as they do in the United States
- Paying a Fair Share Act (S.1173), which would codify the “Buffett Rule” to ensure that multimillion-dollar earners cannot pay lower rates than teachers and firefighters
- Medicare and Social Security Fair Share Act (S.1174), which would extend Medicare and Social Security solvency forever by making the wealthy contribute a fairer share to these essential programs
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