GOP Tax Bill Would Add $1.7 Trillion to National Debt
November 08, 2017
Repealing ObamaCare mandate would save $338 billion over 10 years, according to CBO analysis; Demand for construction workers soft, even after hurricanes.
- CBO reports that GOP tax bill would add $1.7 trillion to debt. The GOP’s tax bill would increase the national debt by $1.7 trillion over the course of a decade, and increase the country’s debt-to-GDP ratio by 5.9 percentage points, according to the Congressional Budget Office (CBO). The CBO analysis found that the bill would decrease revenues by $1.4 trillion, which is within the level Republicans allowed themselves in their budget resolution. However, the additional cost of debt servicing would bring the overall debt increase to $1.7 trillion. The GOP allowed themselves up to $1.5 trillion of deficit increases over a decade in their budget. Despite the additional costs of debt servicing, the CBO score shows the tax plain staying within the bounds, meaning that Republicans will still be able to pass the bill through budget reconciliation, which only requires a simple majority to pass in the Senate. The CBO also found that the nation’s debt-to-GDP ratio, or debt burden, would rise to 97.1 percent of gross domestic product by 2027, 5.9 points higher than the current projection of 91.2 percent. [The Hill]
- Repealing ObamaCare mandate would save $338 billion over 10 years, according to CBO analysis. A new analysis from the Congressional Budget Office showed that repealing ObamaCare’s individual mandate will save $338 billion over 10 years. The analysis comes as some Republicans are pushing to repeal the mandate within tax-reform legislation, as a method to help pay for tax cuts. The CBO said Wednesday that it is changing the way it analyzes the mandate, yet it says it is holding off on making those changes because the work is not complete. [The Hill]
Economic Indicators & News
- Demand for construction workers soft, even after hurricanes. National demand for construction workers remains relatively subdued, even after hurricanes hit the southern U.S. late this summer. After Hurricane Harvey struck the Houston area, construction firms feared they would encounter a shortage of workers as they began rebuilding storm-damaged communities. However, the national look at job openings by industry after the storms showed the need for construction workers has declined slightly in September. New Labor Department data showed 196,000 job openings in the construction industry at the end of the month, down from 230,000 in August. The September reading was roughly in line with the 190,000 openings averaged monthly over the year ended in August. National job openings are near a record high number, as the 12-month average was up about 30% from the start of the recession. Job openings in the health-care field are up more than 50%, while openings in retail are up 48%. [WSJ]