The now signed GOP tax bill will reduce federal revenue by $1.07 trillion over the next 10 years even after accounting for economic growth, according to a new analysis released Friday by Congress’s own bipartisan Joint Committee on Taxation (JCT).
While that’s less than the $1.46 trillion price tag the JCT put on the bill before accounting for macroeconomic effects, it still contradicts Republicans who said the tax plan would fully pay for itself with economic growth.
The JCT’s findings come just hours after President Trump signed the bill into law at the White House.
Trump said that the legislation will be “fantastic for the economy.”
The Hill added:
The Treasury Department had said that an earlier version of the tax package, along with regulatory reform, infrastructure development and welfare reform, would produce enough economic growth to pay for the tax cuts. That analysis was widely criticized by tax experts as well as by Democratic lawmakers.
But congressional Republicans are optimistic that the tax cuts will pay for themselves, and they view the JCT’s estimates as conservative.
However, even the right-leaning Tax Foundation’s recent findings, and while lower than the JCT estimates, suggest the tax cuts won’t pay for themselves.