Summary
The U.S. Senate passed a tax and spending bill that is projected to increase the federal debt by trillions of dollars in the next decade. It extends tax cuts from 2017 and reduces spending on Medicaid and food assistance. The bill now returns to the House for final approval.
Key Facts
- The bill is expected to add between $3 trillion and $4 trillion to the federal debt over ten years.
- It extends the tax cuts originally introduced in 2017.
- The bill cuts spending on Medicaid and food stamps.
- The bill increases spending on defense and immigration enforcement.
- Economic benefits from the bill are predicted to be minor compared to higher costs from interest payments.
- People earning less than $55,000 a year are projected to lose out financially due to benefit cuts.
- Middle-income earners could save between $500 and $1,000 annually.
- High-income earners, the top 10%, might gain around $12,000 from the tax cuts.
