03.21.25

New CBO Data Reveals Republicans’ Budget Plans Explode the Debt and Deficit for Decades

Republican Leadership’s Obsession with Using “Current Policy Baseline” Will Only Cripple the National Debt

WASHINGTON, D.C. – U.S. Senator Jeff Merkley (D-OR), Ranking Member of the Senate Budget Committee, and U.S. Senator Ron Wyden (D-OR), Ranking Member of the Senate Finance Committee, released the following statements after the nonpartisan Congressional Budget Office (CBO) published 10- and 30-year projections of the debt and deficit if Republicans permanently enact a second round of Trump tax giveaways for the rich. CBO projects that under the Republicans’ budget plan, the national debt will expand by $4.6 trillion over the next 10 years. A second round of Trump tax cuts – which Republicans are trying to claim are cost-free by using a “current policy baseline” – will increase the national debt to 214 percent of GDP by 2054, up from 166 percent under current law.

“Congressional Republicans are on a mission to make sure their rich friends like Elon Musk get tax giveaways, and they’ll do anything to achieve it. This data from CBO shows that if Republicans continue on this path, the debt is going to skyrocket, the deficit will multiply, and working families will pay the price – all while millionaires and billionaires add to their fortunes. In short, families lose and billionaires win.  We cannot let Republicans get away with crippling our nation’s economy on the backs of hardworking Americans,” said Ranking Member Merkley.

“This nonpartisan analysis makes it clear there will be nowhere to hide from the hypocrisy if Republicans use fake math to give a handout to billionaires,” said Ranking Member Wyden. “Nonpartisan scorekeepers understand this is a sham, the American people understand this is a sham, and even some Republican members of the House of Representatives understand this is a sham. Republicans are perpetrating this lie on the American people to justify this reckless and wasteful approach that will mortgage America’s future to help billionaires.”

The CBO highlights a few points that would be detrimental to the nation’s economy if Republicans continue down this path:

  • A new round of Trump tax giveaways will increase the primary (non-interest) deficit by $4 trillion. A previous CBO estimate found they would cost $4.6 trillion with interest.
  • By 2054, extending the Trump tax giveaways would increase debt to 214 percent of GDP, growing almost twice as fast as under current law. The extension would be responsible for adding almost 30 percent to the national debt.
  • A new round of tax cuts would mean that long-term economic growth would be slower, and interest rates would be higher.

CBO’s report can be found HERE.

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