House Tax Bill Boosts Deficit $2.8 Trillion, CBO Analysis Shows

The House-passed version of Republicans’ tax and spending bill would add $2.8 trillion to US deficits over the next decade, according to new estimates from the Congressional Budget Office that incorporate the broader impact the legislation would have on the economy and federal budget.

The new estimate is even bigger than a previous $2.4 trillion calculation, which hadn’t accounted for so-called dynamic effects. In a release Tuesday, the nonpartisan CBO said that higher interest rates from the bill would add $441 billion to deficits over a decade. The agency only saw an $85 billion reduction in borrowing thanks to economic effects, mainly through faster growth.