CBO Lowers Debt Estimate on Trump's Controversial Tax Bill

The Congressional Budget Office (CBO) has lowered its projection for the national debt impact of President Donald Trump's tax-cut and spending bill. Initially estimated at $3.8 trillion, it is now expected to add $2.4 trillion to the $36.2 trillion national debt. The revision follows recent adjustments to the legislation.

Despite being passed by the House without any Democratic backing, the bill remains contentious, even within Republican ranks. Key Trump ally Elon Musk called the bill a "disgusting abomination," aligning with deficit-conscious Republicans' stance. The bill aims to extend Trump's 2017 tax cuts while reducing healthcare spending for the poor.

Senate Majority Leader John Thune attempts to downplay Musk's criticism, stating differences in opinion. With a narrow Senate majority, Republicans are debating amendments to the House version, potentially scaling back Medicaid savings or removing tax cuts related to overtime and Social Security incomes.

(With inputs from agencies.)