CBO: Build Back Better Act Increases Deficit by $3 Trillion

The Congressional Budget Office (CBO) found the Build Back Better Act would cost $3 trillion, far higher than its alleged $1.75 trillion price tag.

The CBO wrote the Democrats’ marquee legislation would cost $3 trillion over ten years if the legislation would cost far more than reported if many of the bill’s sunsetted provisions did not expire.

Democrats are using these sunsetted provisions to mask the cost of the legislation.

The CBO noted the child tax (CTC) serves as the most costly part of the bill. In the House-passed version of the bill, the CTC expansion would cost $185 billion, as it would expire after 2022.

However, the CBO said it would cost $1.597 trillion if it were to continue past that deadline.

Other significant costs with sunsets include:

• Child care and preschool funding; the provision would cost $752 billion if it were made permanent instead of ending after 2027
• The increased state and local tax (SALT) deduction would cost $752 billion if the bill were to remove limits on the deduction after 2025
• Affordable Care Act (ACA) subsidies would cost $220 billion instead of $74 billion if ACA subsidies were made permanent instead of expiring after 2025 and 2026
• The increased earned income tax credit (EITC) would cost $135 billion instead of $13 if were made permanent instead of ending after 2022.

This study mirrors other analyses that found the Democrats’ behemoth legislation would cost far more if the sunsets were to continue past their arbitrary deadlines.

The Committee for a Responsible Federal Budget noted that the legislation would cost $4.91 trillion over ten years if the bill’s sunsets were made permanent.

The CBO’s analysis of the Build Back Better may impact moderate Democrats senators, who remain concerned about the bill’s impact on inflation.

Sen. Joe Manchin (D-WV) has said that the Build Back Better Act needs a “lot of changes.”

The West Virginia Democrat has also said that he remains skeptical about President Joe Biden’s claims that the bill would help curb inflation.

“I haven’t’ seen that. I’ve’ heard that. I don’t’, I don’t’ know how you control inflation when there’s’ the first year of spending is going to be quite large,” Manchin said.