US House Speaker Mike Johnson, center, during a ceremony following the passage of the “One Big Beautiful Bill Act” on July 3.
Photographer: Kent Nishimura/BloombergTrump’s Tax Bill Will Add Trillions to the US Debt. Does It Matter?
Convention holds that it does, though not everyone agrees. A guide to the debate.
The federal budget deficit is back in the spotlight after the Republican-controlled Congress approved a massive tax and spending package on July 3 aimed at realizing President Donald Trump’s domestic agenda. The non-partisan Congressional Budget Office estimates the measure will add $3.4 trillion to the national debt over a decade. Already, the deficit has been gradually widening over the last decade or so, bucking the typical pattern of narrowing in times of economic expansion.
Conventional wisdom holds that ever-increasing debt relative to gross domestic product is unsustainable, though another line of argument holds that fears about the hole the US is in are overblown. Here’s what to know.