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 TrumpOmar, Muslim Democrats decry Islamophobia amid death threats On The Money — Powell pivots as inflation rises Trump cheers CNN's Cuomo suspension MORE's desk by the end of the year.
House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyEconomic growth rate slows to 2 percent as delta derails recovery Democratic retirements could make a tough midterm year even worse Yellen confident of minimum global corporate tax passage in Congress 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.