Fact Check: Trump's budget bill could add a staggering $2.8 trillion to the deficit.

Fact Check: "Trump's budget bill could add a staggering $2.8 trillion to the deficit."

What We Know

The claim that President Trump's budget bill could add $2.8 trillion to the deficit is supported by a recent analysis from the Congressional Budget Office (CBO). According to the CBO, the tax cuts included in the budget bill would increase the federal deficit by approximately $2.8 trillion over the next decade when accounting for various economic impacts, including debt service costs and anticipated interest rate increases (AP News). This figure is derived from a dynamic analysis that estimates how changes in the economy might affect revenues and spending, contrasting with static scoring methods that assume no changes in economic conditions (Reuters).

The CBO's earlier static scoring had projected a deficit increase of $2.4 trillion, but the dynamic analysis, which considers potential economic growth from tax cuts, ultimately results in a higher deficit estimate (AP News). The report also indicates that the tax cuts would not only fail to pay for themselves but would also exacerbate the deficit situation significantly (Forbes).

Analysis

The reliability of the CBO as a source is well-established; it is a nonpartisan agency that provides economic data and analysis to Congress. The CBO's recent report has been cited by various news outlets and experts, reinforcing its credibility (Axios). Critics, particularly from the Republican side, have challenged the CBO's findings, arguing that the agency underestimates the potential for economic growth resulting from tax cuts (AP News). However, the CBO's methodology is widely accepted in economic circles, and its dynamic scoring approach is designed to provide a more comprehensive view of the budgetary impacts.

Moreover, the analysis from the CBO has been corroborated by other sources, including the Committee for a Responsible Federal Budget, which stated that the tax cuts would not only fail to offset their costs but would also add significantly to the national debt (AP News). This consensus among various economic analysts lends further weight to the claim that the budget bill could indeed add $2.8 trillion to the deficit.

Conclusion

Verdict: True. The claim that Trump's budget bill could add $2.8 trillion to the deficit is substantiated by the CBO's analysis, which incorporates a dynamic scoring model to assess the broader economic impacts of the proposed tax cuts. Despite some political pushback, the evidence from credible sources supports the assertion that the budget bill will significantly increase the federal deficit.

Fact Check: Trump's budget bill could add a staggering $2.8 trillion to the deficit.