Trump Tax Cut Extension Cost Swells to $3.8 Trillion, CBO Warns.

The cost of extending the 2017 tax cuts enacted under President Donald Trump has increased to $3.8 trillion over ten years, according to the Congressional Budget Office (CBO). Lawmakers will need to address the deficit impact of renewing the cuts, as the US faces a challenging fiscal outlook. The CBO's estimate is double the original cost of the Trump tax cuts, and the anticipated cost of extending the tax cuts may prompt lawmakers to consider spending cuts or scaling back rate reductions. President Joe Biden has proposed new tax hikes, while Trump has pledged to renew the tax cuts without releasing a specific plan. The expiring portion of the tax cuts includes reductions in individual tax rates and an expansion of the child tax credit. The CBO's new cost estimate for renewing just that portion is higher than last year's estimate. The CBO also raised its projection for this year's budget deficit, emphasizing the need for lawmakers to address deficits sooner rather than later. Deficits are expected to rise to $2.6 trillion by 2034, with debt held by the public reaching 116% of GDP, the highest ever recorded. [Extracted from the article]