The party chose spin over substance. And the spin is not working.
Republicans vociferously claim their tax legislation—the One Big Beautiful Bill Act passed by the House and working its way through the Senate—would unleash an economic boom so colossal that its resulting tax revenues would offset the entire cost. This dubious boast was shredded by a recent Congressional Budget Office (CBO) reality check showing that the bill’s broader economic effects actually increase the 10-year cost projection by $356 billion.
According to this “dynamic score,” the bill is so poorly designed that it would fail to produce any significant long-term increase in economic growth. Instead, the tiny amount of growth revenues would be swallowed by $441 billion in added 10-year federal debt interest costs that would result from the bill raising interest rates across the economy and on the entire federal debt. Those “dynamic” interest costs from rising rates are in addition to $551 billion in interest costs that would be paid specifically on the bill’s $2.4 trillion in 10-year borrowing.
Rather than address the bill’s extraordinary cost, Republicans responded by attacking the CBO. They challenged the agency’s historical accuracy by claiming that it failed to competently score the 2017 Tax Cuts and Jobs Act (TCJA)–even as CBO’s subsequent revenue estimate achieved 99.5 percent accuracy up until the pandemic. President Donald Trump accused the CBO of being run by Democrats even though its director is a Republican. Sen. Tim Scott produced a video claiming that CBO also erroneously scored tax cuts in the 1930s and 1960s—which is impossible because CBO did not exist until 1974, not to mention that those 1930s tax cuts actually took place in the 1920s. All because the CBO refused to pretend that the House Republican tax bill would pay for itself or even offset a portion of the cost.
Continue reading the entire piece at The Dispatch (paywall)
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Jessica Riedl (formerly Brian Riedl) is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
Photo by Douglas Rissing/Getty Images
