Trump’s plan to overhaul the tax code will add about $2.3 trillion to the country’s debt over the next 20 years, a Treasury official said Friday.
Trump and Senate Republicans released the plan Wednesday as part of their effort to enact a tax overhaul of their own, which they hope to unveil by Christmas.
The new debt figure, which is more than $6 trillion, is a drop in the bucket compared to what the country would have to take on to pay off the bills of the roughly 8.5 million Americans who have already defaulted on their student loans, according to the Congressional Budget Office.
The Treasury official, who spoke on condition of anonymity to discuss the official’s assessment of the plan, said that as of March 2021, the debt would have been $3.6 trillion if the tax cuts had gone into effect.
By 2027, it would have increased to $4.2 trillion.
Trump has said that the plan would reduce deficits by $2,000 for every $1 the government spends on taxes, but that number is not precise.