Posted on 06/04/2025 10:59:16 AM PDT by ChicagoConservative27
The Congressional Budget Office (CBO) projects that recent U.S. tariff increases will reduce federal deficits by $2.8 trillion over the next decade, primarily through increased customs revenue and lower interest payments on federal debt—more than enough to offset the projected cost of President Donald Trump’s proposed tax cut bill.
In a separate analysis, the CBO recently estimated that extending the 2017 tax cuts, as proposed in the administration’s new tax and spending bill, would increase the deficit by roughly $2.4 trillion over the same period. That legislation would reduce federal revenues by $3.67 trillion while cutting spending by $1.25 trillion, resulting in a net increase in the federal deficit.
The CBO’s estimate of gains from tariffs strengthens the administration’s case that tariffs can pay for tax relief. In fact, the combination of tax relief and tariffs produces a net reduction in deficits, according to the CBO.
(Excerpt) Read more at breitbart.com ...
Nah. 4 Senators and Musk know better.
Combined with spending cuts, this would be a game-changer.
But combined with even more spending…maybe not so much.
This is simply untrue. Every single analysis of the BBBA clearly shows it will ADD $2.4 Trillion to our national debt within the decade.
https://www.cnbc.com/2025/06/04/trump-tax-bill-debt.html
The sound of dragging, kicking, and screaming, is going to be persistent for a long time. “Cruel, cruel, summer” isn’t just a song by the Go-Go’s.
Bananarama.
tax cuts don’t always reduce tax revenue. But CBO always say that b/c they don’t use dynamic scoring.
as reagan [art laffer] showed, there is a non-linear relationship between tax rates and tax revenue. lower taxes can absolutely mean more revenue.
like selling shoes for $300 generate revenue of $3 million [10,000 pairs]. Will reducing the price to $250 reduce revenue generated? Lowering the price sells more pairs! If 12,500 pairs are sold at $250 that’s 3.125 million.
Which means you know what the tariffs are going to be ?
Paging “Grandstand” Rand Paul!!
> lower taxes can absolutely mean more revenue <
Oh, I agree. I’m not against lower taxes. In fact, I’m in strongly favor of them. They can increase revenue, as you noted. And they help starve the federal beast.
What bothers me is the fussing around the edges while spending continues to increase. And bill that adds to the deficit is not a good bill. It might not be a bad bill. But it’s not a good one.
So tariffs (2.8 T) combined with the BBBB (-2.4t) bill equates to a .4 billion dollar surplus?
Rand the scam knows better.
The same flaw in the CBO scoring method is what generates the $2.8T tariff revenue projection. I don’t see any way tariffs raise $280B per year in revenues.
Easy silly.... it’s done by the same people that stated two weeks to flatten the curve.
Did you read the article?
It's a CBO analysis that adds tariff receipts to the $2.4 trillion debt number.
Reading articles before posting is not the Freeper way.
FR Besters. Thank you. ;)
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