WASHINGTON (AP) — The preliminary deficit estimate for the final version of the GOP tax bill says it would add $1.46 trillion to the budget deficit over the coming 10 years.
The true deficit cost is likely to be even higher if lawmakers extend the tax cuts for individuals before they expire at the end of 2025. This "sunset" gimmick is used to make the tax cuts more generous over the eight years they would be in force.
The Joint Committee on Taxation analysis combines revenue losses from rate cuts with tax increases from repeal of deductions and other preferences. All told, cuts for individuals and businesses taxed under the code for individuals account for $1.1 trillion of the net tax cuts.