The GOP’s tax bill would add $1.7 trillion to the national debt over a decade, and would increase the country’s debt-to-GDP ratio by 5.9%, according to the Congressional Budget Office.
The CBO analysis found that the bill would cut revenues by $1.4 trillion, which is within the level Republicans allowed themselves in the budget resolution. However, the cost of debt servicing would mean that the overall national debt would increase by $1.7 trillion.
The CBO also found that the nation’s debt-to-GDP ratio, or debt burden, would rise to 97.1% of GDP by 2027, 5.9% higher than the current projection of 91.2%.
Republicans have warned against a bill that would increase the deficit. Sen. Bob Corker told NPR that he would not vote for a tax reform bill that increases the deficit:
“Unless it reduces deficits – let me say that one more time – unless it reduces deficits and does not add to deficits with reasonable and responsible growth models and unless we can make it permanent, I don’t have any interest in it.”
However, Trump administration officials have said that increased spending and economic growth would make up for the decrease in revenues and argue that the tax bill would not add to the deficit.