Biden’s social and climate plan is set for a House vote after a CBO analysis said it would slightly boost the deficit
For comparison, the CBO projected the bipartisan infrastructure package backed by nearly all House Democrats and 13 Republicans would add $256 billion to deficits over a decade. The agency estimated the 2017 Republican tax law signed by then-President Donald Trump — one of the last huge bills pushed through Congress that was not an emergency coronavirus aid plan — would add nearly $1.5 trillion to deficits over 10 years.
If the House passes the bill this week, the Senate aims to approve it before Christmas, Senate Majority Leader Chuck Schumer said. If the Senate makes changes to the legislation, it would have to go back to the House for another vote.
Tweaks in the Senate — which could include scrapping a paid leave program or revising a proposal to lift the cap on state and local tax deductions — could change the deficits effects by tens of billions of dollars.
Democrats have touted a previous estimate from the nonpartisan Joint Committee on Taxation projecting the bill would not add to long-term budget estimates. But five Democrats — enough to sink the bill on their own in the House — said they wanted to see the CBO score as well before they backed the legislation.
Democrats indicated they believed the nonpartisan scorekeeper would underestimate the money raised by pieces of the package, such as the additional IRS funding. After the CBO released its projection, Treasury Secretary Janet Yellen reiterated the Biden administration’s view that the plan would not add to long-term deficits.
“With this bill, members of Congress have a unique opportunity to put our economy on a path to increased growth, productivity, labor force participation, and equity, while ensuring we do not burden future generations with unsustainable debt. I urge them to pass it,” she said in a statement.
The White House didn’t immediately respond to CNBC’s request for comment.
In a tweeted statement citing the Treasury estimate, Biden said his “Build Back Better Act is going to reduce the deficit by more than $100 billion over ten years.”
“It’s going to lower costs, create jobs, and rebuild our economy. Let’s get this done,” he said.
Article source: https://www.cnbc.com/2021/11/18/build-back-better-act-vote-cbo-releases-score-of-biden-plan.html