Jun 5, 2025 Financial Tips

Trump’s Tariffs Would Cut Budget Deficits by $2.8 Trillion, CBO Says

Trump’s Tariffs Would Cut Budget Deficits by $2.8 Trillion, CBO Says
Breitbart ^ | 06/04/2025 | John Carney

Posted on 06/04/2025 10:59:16 AM PDT by ChicagoConservative27

The Congressional Budget Office (CBO) projects that recent U.S. tariff increases will reduce federal deficits by $2.8 trillion over the next decade, primarily through increased customs revenue and lower interest payments on federal debt—more than enough to offset the projected cost of President Donald Trump’s proposed tax cut bill.

In a separate analysis, the CBO recently estimated that extending the 2017 tax cuts, as proposed in the administration’s new tax and spending bill, would increase the deficit by roughly $2.4 trillion over the same period. That legislation would reduce federal revenues by $3.67 trillion while cutting spending by $1.25 trillion, resulting in a net increase in the federal deficit.

The CBO’s estimate of gains from tariffs strengthens the administration’s case that tariffs can pay for tax relief. In fact, the combination of tax relief and tariffs produces a net reduction in deficits, according to the CBO.

(Excerpt) Read more at breitbart.com ...

TOPICS: Business/Economy; Culture/Society; News/Current Events; Your Opinion/Questions
KEYWORDS: budget; cbo; commerce; cut; deficits; tariffs; trade; trillion; trumps; would

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To: ChicagoConservative27

Nah. 4 Senators and Musk know better.

2 posted on 06/04/2025 11:01:46 AM PDT by HYPOCRACY (Wake up, smell the cat food in your bank account. )

To: ChicagoConservative27

Combined with spending cuts, this would be a game-changer.
But combined with even more spending…maybe not so much.

3 posted on 06/04/2025 11:05:58 AM PDT by Leaning Right (It's morning in America. Again. )

To: ChicagoConservative27

The sound of dragging, kicking, and screaming, is going to be persistent for a long time. “Cruel, cruel, summer” isn’t just a song by the Go-Go’s.

5 posted on 06/04/2025 11:09:16 AM PDT by blackdog ((Z28.310) Dogs are with us briefly. Politicians last on forever. Listen to your dog. )

To: blackdog

6 posted on 06/04/2025 11:11:29 AM PDT by dfwgator (Endut! Hoch Hech!)

To: Leaning Right

tax cuts don’t always reduce tax revenue. But CBO always say that b/c they don’t use dynamic scoring.

as reagan [art laffer] showed, there is a non-linear relationship between tax rates and tax revenue. lower taxes can absolutely mean more revenue.

like selling shoes for $300 generate revenue of $3 million [10,000 pairs]. Will reducing the price to $250 reduce revenue generated? Lowering the price sells more pairs! If 12,500 pairs are sold at $250 that’s 3.125 million.

7 posted on 06/04/2025 11:17:13 AM PDT by Principled (Biden is illegitimate and whatever he says can be ignored. )

To: ChicagoConservative27

Which means you know what the tariffs are going to be ?

8 posted on 06/04/2025 11:18:37 AM PDT by erlayman

(E )

To: ChicagoConservative27

Paging “Grandstand” Rand Paul!!

9 posted on 06/04/2025 11:18:43 AM PDT by mass55th (“Courage is being scared to death, but saddling up anyway.” ― John Wayne)

To: Principled

> lower taxes can absolutely mean more revenue <

Oh, I agree. I’m not against lower taxes. In fact, I’m in strongly favor of them. They can increase revenue, as you noted. And they help starve the federal beast.

What bothers me is the fussing around the edges while spending continues to increase. And bill that adds to the deficit is not a good bill. It might not be a bad bill. But it’s not a good one.

10 posted on 06/04/2025 11:26:56 AM PDT by Leaning Right (It's morning in America. Again. )

To: Bob Wills is still the king

So tariffs (2.8 T) combined with the BBBB (-2.4t) bill equates to a .4 billion dollar surplus?

11 posted on 06/04/2025 11:28:28 AM PDT by MrRelevant

To: ChicagoConservative27

Rand the scam knows better.

12 posted on 06/04/2025 11:32:48 AM PDT by cp124 (Bring back the Constitution.)

To: Principled

The same flaw in the CBO scoring method is what generates the $2.8T tariff revenue projection. I don’t see any way tariffs raise $280B per year in revenues.

13 posted on 06/04/2025 11:42:08 AM PDT by Alberta's Child ("The gallows wait for martyrs whose papers are in order.")

To: Alberta's Child

Easy silly.... it’s done by the same people that stated two weeks to flatten the curve.

14 posted on 06/04/2025 11:47:42 AM PDT by LastDayz (A Blunt and Brazen Texan. I Will Not Be Assimilated.)

To: Bob Wills is still the king

This is simply untrue. Every single analysis of the BBBA clearly shows it will ADD $2.4 Trillion to our national debt within the decade.

Did you read the article?

It's a CBO analysis that adds tariff receipts to the $2.4 trillion debt number.

15 posted on 06/04/2025 12:10:52 PM PDT by FreeReign

To: FreeReign

Reading articles before posting is not the Freeper way.

16 posted on 06/04/2025 12:54:37 PM PDT by Jacquerie (ArticleVBlog.com)

To: dfwgator

FR Besters. Thank you. ;)

17 posted on 06/04/2025 2:03:18 PM PDT by blackdog ((Z28.310) Dogs are with us briefly. Politicians last on forever. Listen to your dog. )

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