Before switching to personal attacks, the clash between President Donald Trump and Elon Musk began with disagreement on the debt of the country’s balloon.
Musk openly condemns what Trump hopes to be his distinctive legislative achievement – Tax bills and immigration, dubbed a beautiful large action – as a “kicktage” of their estimates of the deficit and debt.
Similar concerns among a handful of the Republican Budget Hawks in the Senate to complicate the Bill Road to the passage of Trump desired by the Fourth of July deadline.
Fuel was added to the API when the Non -Partisan Congress Budget Office released a new score that estimated that the law would add $ 3 trillion to the national debt over the next decade.
Debt – Total Deficits and Annual Interest – Standing on the highest historical $ 36 trillion. The steps of debt held publicly are around 100% economic size.
“We are at World War II level now from government debt, and as far as the eye can see in the future we only climb,” Kent Spetters, a professor at the Wharton School of Business University of Pennsylvania who previously worked at CBO, told ABC News.
What to know about the CBO Megabill Trump score
The non -partisan budget office estimates that Megabill Trump as approved by the DPR will add $ 2.4 trillion for a federal deficit over the next decade, plus carrying an interest fee of $ 550 billion.
“One Big Beautiful Bill Act” is expected to increase in national debt
Congress Budget Office, US Finance Ministry
Senator Republic Ron Johnson, after the release of CBO, told ABC News Live: “I refuse to receive a deficit of $ 2 trillion-plus as far as the eye can see as a new normal.”
“I’m worried about our children and grandchildren, the fact that we mortgage their future. That’s wrong. This is immoral,” Johnson said.
CBBI’s White and House Leadership Claims False CBO. Officials accuse agents of political bias and take problems by calculating scores without taking into account the potential for economic growth, which will be in separate analysis later this year.
Experts say the criticism is invalid. They noted that CBO is currently led by an official on duty in the government of George W. Bush and that his estimates for this bill are not far from the independent model of banks or other outside institutions.
“I think they know at a certain level that what they do is not fiscal, and they are trying to blame the messenger for the message,” said Stan Veuger, a senior colleague in an economic policy study at the American Enterprise Institute, a think tank leaning to the right.
Veuger and Brendan Duke, senior director for federal budget policies at the Center for Budget Priorities and Left Policy, also emphasized the CBO scores based on the bill as written as the hope is that the provisions of certain expenses and taxes said to be the Republican party will expire in a few years it is likely to be extended, bringing fiscal fees for higher bills.
Meanwhile, CBO estimates that Megabil can cut a tax of $ 3.7 trillion and cut off $ 1.2 trillion.
And Trump has broken other analysis this week from the budget office that said the tariff policy (suggested by the President can pay for some of his megabill priorities) which says revenue from the tariff will reduce the deficit of $ 2.8 trillion. Although the estimate assumes the tariff will apply permanently, while Trump shifts to his policy several times and some of the tariff actions are challenged in court.
How the debt becomes so high, and what are the consequences
The national debt has advanced upward in recent decades under the Democratic and Republican government. Large tax deductions under President Ronald Reagan, George W. Bush and Trump caused deficits; Like the stimulus package that was passed after the 2008 financial crisis and Pandemic Coronavirus 2020.
National debt from year to year
US Finance Ministry
To help pay Megillal Trump, the Republican party made changes to Medicaid and additional nutritional assistance programs. The non -partisan budget office estimates that millions of Americans will lose health insurance due to slaughtering.
“It is one thing if we ask Americans to give a little to reduce deficits. But this does not reduce deficits,” Duke said. “This increases the deficit while leaving millions of low income payments and is worse.”
Balancing the fully budget sheet will require more drastic changes. All federal expenses need to be reduced by 30% and taxes increase 26% – or a combination of both – immediately and forever, said the Penn Wharton Smetters.
While many economists believe that some government debt is a good thing, because it means that many people view US securities as one of the safest assets in the world, too much debt can have negative consequences.
Experts say potential consequences can be an increase in interest rates and problems with the bond market. This can also cause less wage growth and economic progress. The worst scenario will fail to pay debts.
“The United States is clearly not too big to fail,” Smetters said. “When failure occurs, what you see is significant inflation, you see significant pain and you see social upheaval.”