Congressional scorekeeper: House-passed tax bill wouldn't pay for itself

Congressional scorekeeper: House-passed tax bill wouldn't pay for itself
© Greg Nash

The tax bill House Republicans passed last month wouldn't produce enough revenue from economic growth to pay for itself, Congress's tax scorekeeper said in a 12-page report released Monday.

The economic growth resulting from the bill would lower the measure's revenue loss by more than $400 billion over 10 years. However, the bill would still cost about $1 trillion over a decade, even after accounting for those revenues, according to the Joint Committee on Taxation (JCT).

The report comes as House and Senate Republicans work to resolve the differences between their two tax bills and produce a final piece of legislation that they can get to President TrumpDonald John TrumpArizona GOP Senate candidate defends bus tour with far-right activist Alyssa Milano protests Kavanaugh in 'Handmaid's Tale' costume Bomb in deadly Yemen school bus attack was manufactured by US firm: report MORE's desk by the end of the year.

House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyTreasury releases proposed rules on major part of Trump tax law Republicans happy to let Treasury pursue 0 billion tax cut Trump weighs big tax cut for rich: report MORE (R-Texas) said Monday that he thinks the analysis reflects the fact that JCT "historically is a very conservative estimator of growth."

He said that some analyses have found that the bill would produce more economic growth than JCT predicts, while others have found that the bill would produce less growth.

JCT previously estimated that the Senate bill as approved by the Finance Committee would also add about $1 trillion to the deficit after accounting for economic growth. Republicans were critical of that analysis, arguing that the group's growth estimate was low.

Earlier Monday, the Treasury Department released a one-page paper arguing that the growth produced by the tax cuts, along with regulatory reform, infrastructure development and welfare reform would raise enough revenue to pay for the tax cuts. Democrats criticized that analysis as using "fake math."

updated at 6:25 p.m.