Congressional Report: Trump Tax Bill Creates $3.4 Trillion Debt 'Black Hole'

According to a report by the Congressional Budget Office (CBO), Donald Trump's tax bill is projected to increase the federal deficit by $3.4 trillion and lead to a loss of health coverage for approximately 10 million people.

The 'megabill,' signed on July 4, includes cuts to public health spending, mainly through Medicaid. The CBO acknowledges savings exceeding $1 trillion, but emphasizes that the burdens are greater than the benefits.

The permanent extension of the 2017 tax breaks, promoted by the Trump administration, accounts for most of the burden. The Senate Finance Committee endorsed measures that reduce tax revenues by $4.5 trillion over the next decade.

Additionally, the CBO conducted a parallel analysis using an alternative accounting method, which limits the burden on the deficit to $366 billion. However, this approach is not the official one of the CBO.