Cost of GOP tax plan could exceed $2 trillion

Tax cuts for individuals expire in 8 years, when there is likely to be a Democratic president.

http://thehill.com/policy/finance/365446-analyses-cost-of-gop-tax-plan-could-exceed-2-trillion-if-made-permanent

By Naomi Jagoda - 12/18/17

The GOP tax bill would cost significantly more if tax cuts that are temporary in the legislation are eventually made permanent, according to two new reports.

Most of the bill's changes for individuals sunsets in 2025, even as a cut to the corporate rate from 35 percent to 21 percent is made permanent.

If future Congresses decide to extend the lower tax rates for individuals and families rather than allow them to expire, and also extends other temporary provisions, the bill will end up costing $2 trillion to $2.2 trillion, according to a report by the Committee for a Responsible Federal Budget, a nonpartisan deficit hawk group.

Even accounting for economic growth, it predicts the bill would add $1.5 trillion to $1.7 trillion to the debt — bringing debt levels close to 100 percent of the nation's GDP.

"If expiring provisions are extended and late-stage tax hikes avoided, debt could reach as high as 98 percent or 100 percent of GDP by 2027," the group said. "In other words, the national debt could exceed the size of the economy."

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