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CBO Confirms Senate GOP Tax Plan Would Add $1.4T to U.S. Deficit

Sen. Mitch McConnell - Senate Tax Plan
U.S. Senate Leader Mitch McConnell

The non-partisan Congressional Budget Office (CBO) confirmed Monday the Senate GOP tax plan would add a whopping $1.4 trillion to the U.S. deficit over the next decade and cause 13 million Americans to lose health insurance coverage if it becomes law.



The CBO released a summary of their findings which found that the White House-backed Tax Cuts and Jobs Act bill would balloon the deficit.

RELATED: House Passes Republican Tax Plan for the Rich, Senate Passage Uncertain.

The CBO also estimates that removing ObamaCare individual insurance mandate would not be catastrophic as once feared adding that “nongroup insurance markets would continue to be stable in almost all areas of the country.”

“The provisions contained in the legislation would decrease federal revenues, on net, by about $38 billion in 2018, by $972 billion over the period from 2018 to 2022, and by $1,633 billion over the period from 2018 to 2027.”

However, the CBO warned that removing the individual mandate which taxes individuals who choose not to buy insurance, would increase costs by at least 10 percent every year for decades.

“Average premiums in the nongroup market would increase by about 10% in most years of the decade … relative to the CBO’s baseline projected. In other words, premiums in both 2019 and 2027 would be about 10% higher than is projected in the baseline,” CBO said in their anaylsis.




It also says removing the mandate would decrease the number of Americans with health insurance by up to four million in 2019 and 13 million by 2027. “The number of people with health insurance would decrease by 4 million in 2019 and 13 million in 2027,” the report said.

CBO estimates that enacting the GOP tax plan would lower the revenue coming to the federal government by a whopping $1,633 billion over the period from 2018 to 2027.

“The provisions contained in the legislation would decrease federal revenues, on net, by about $38 billion in 2018, by $972 billion over the period from 2018 to 2022, and by $1,633 billion over the period from 2018 to 2027.”




Democrat Senators are expected to vote against the tax plan leaving the GOP leadership with narrow margin – they can lose no more than two senators in order to pass the bill with Vice President Mike Pence breaking the tie.

SEE ALSO: Trump’s Obsession with Time Magazine Continues, Magazine Calls Him “Incorrect”.

So far, a few GOP senators are hesitating to come out in support of the tax plan including Arizona’s John McCain and Jeff Flake, Maine’s Susan Collins, James Lankford of Oklahoma, Bob Coker of Tennessee, Steve Daines of Montana, Jerry Moran of Kansas, Rand Paul of Kentucky and Lisa Murkowski of Alaska.

Only Sen. Ron Johnson of Wisconsin has come out against the tax plan although experts expect him and many others to vote for the bill when it comes to the floor.

 

 

The Staff of The Liberal Advocate News

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