US Treasury and Congressional Budget Office reports

Trump's TCJA Extension Gains Wall Street Support Despite $4.6 Trillion Cost, Sets Up 2025 Fight

Jun 7, 2024, 12:06 PM

Donald Trump is garnering support from Wall Street donors with his proposal to extend the 2017 tax cuts, despite the significant financial implications. The extension, which could cost an estimated $4.6 trillion over the next decade, is projected to pay for only 1% to 14% of itself. The Congressional Budget Office (CBO) has highlighted that this extension could exacerbate the national debt, which is already higher than in 2017, with ballooning interest costs and looming Social Security challenges. Despite these concerns, Republican enthusiasm for the renewal remains strong. The Tax Cuts and Jobs Act (TCJA) extension sets up a crucial 2025 fight.