Last Friday while most of the country was engaged in hand-wringing over the fate of TikTok, House Budget Committee Republicans were busy constructing their wishlist of options and cost estimates for the Party's reconciliation package.
Everything seems to be on the table, including the mortgage interest deduction, tax-exempt status of municipal bonds, the child tax credit, and anything remotely related to climate science. All to help offset the cost of extending the Trump tax cuts for 10 years.
In the first year alone, extending the Tax Cuts and Jobs Act (TCJA) will create a $112.6 billion windfall for earners in the top 5 percent. They would receive 40 percent of the benefits from the extension—more than the bottom 80 percent. According to the Congressional Budget Office (CBO), a 10-year extension would add nearly $5 trillion to the federal deficit, making this boondoggle one of the most expensive tax giveaways in U.S. history.
References:
Extending Temporary Provisions of the 2017 Trump Tax Law: National and State-by-State Estimates
Budgetary Outcomes Under Alternative Assumptions About Spending and Revenues (CBO Report)
House Budget floats menu of reconciliation options - Punchbowl News
