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Trump tax-cut plan estimated to add $2.4 trillion to national debt

Wednesday 04 June 2025 - 16:36
Trump tax-cut plan estimated to add $2.4 trillion to national debt
By: Zahouani Ilham
Zoom

The nonpartisan Congressional Budget Office (CBO) revised its forecast on Wednesday, lowering the expected cost of President Donald Trump’s tax-cut and spending legislation. The updated projection estimates the plan will increase the national debt by approximately $2.4 trillion, down from a previous $3.8 trillion estimate. The national debt currently stands at $36.2 trillion.

This revision follows criticism from key Trump supporter Elon Musk, who recently denounced the bill as a “disgusting abomination,” lending support to Republican deficit hawks opposing the proposal. The bill, which passed the House on May 22 without Democratic votes, seeks to extend Trump’s 2017 tax cuts while enforcing significant spending cuts, particularly targeting a healthcare program for low-income individuals.

The CBO’s updated analysis incorporates recent amendments made as Republican leaders pushed the bill through the House. The White House and leading Republicans sought to downplay Musk’s objections. Musk, who had promised to cut $2 trillion from the federal budget during his brief advisory role, left after achieving only minor reductions.

Senate Majority Leader John Thune acknowledged the disagreement but emphasized respect for Musk’s other contributions. The new CBO figures are expected to influence the Senate’s efforts, where Republicans hold a slim 53-47 majority and face internal divisions over how to adjust the House-approved bill. Some senators are advocating to reduce Medicaid savings or remove expensive tax cuts related to overtime, tipped wages, and Social Security income.

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