Trump's reforms threaten sharp increase in budget deficit — US Congressional Budget Office

Donald Trump's tax reforms continue to cause mixed reactions from experts. Last month, after some heated debates, the bill was passed by the House of Representatives with a small majority. The Senate will decide the future of the US president's initiative. A few lawmakers have already called for changes to the bill.

According to the nonpartisan Congressional Budget Office's calculations, the tax bill will increase the US budget deficit by $2.42 trillion over the next decade. Compared to baseline projections, expected government revenues will decline by $3.67 trillion through 2034, while spending will decrease by only $1.25 trillion.

However, Bloomberg experts note that the agency's calculations do not take into account the potential growth of the US economy as a result of the president's tax reforms. A significant rise in the country's GDP could partially offset the deficit.

Nevertheless, the Congressional Budget Office's assessment has already raised doubts among officials. This week, Republican ally Elon Musk spoke out against Trump's bill. The businessman expressed extreme disapproval of “such wastefulness,” as cited by Bloomberg.