In CBO's economic projections, which underlie its budget projections, output grows at a faster pace this year than in 2017, as the recent changes in fiscal policy add to existing momentum in spending on goods and services.
The independent financial scorekeeper said that the long-term USA debt, now more than US$ 21 trillion, could soar to more than US$ 33 trillion by 2028, with increasing annual deficits jumping from US$ 804 billion this year to US$ 1.5 trillion in a decade. The vote is sure to fall well short of the two-thirds majority required to pass. That pay hike is well below the $4,000 a year in annual income boosts that the administration predicted the measure would deliver to average households at a minimum.
"Such high and rising debt would have serious negative consequences for the budget and the nation", said CBO Director Keith Hall.
According to the report, the tax law would cost the government $2.3 trillion in revenues, but economic growth would offset that figure by about $461 billion.
The CBO's annual report on the US budget and economy typically comes out in January but was delayed this year to allow it to assess effects of the tax overhaul and spending bill. On the Senate floor, Minority Leader Chuck Schumer (D-N.Y.) said the report is "a reminder of how unserious the current Republican Party is about deficits".
Meanwhile, the House is scheduled to vote Thursday on a constitutional amendment that would prohibit Congress from spending more than the government takes in annually, unless a supermajority of both chambers votes to exceed those limits.
"It's going nowhere", said Sen. Deficits can snowball, as larger deficits require larger interest payments, pushing the government to borrow more and more money to close the gap.
"The largest effects on GDP over the decade stem from the tax act", according to the CBO. If interest rates go up, the government would have to pay much more to finance the more than $14tn in treasury debt held by investors.
The deficit will rise to $804 billion this year before jumping to $1 trillion in 2019. The deficit settled below $500 million for part of Obama's second term but has steadily risen since then.
The national debt is on track to approach 100 percent of gross domestic product (GDP) by 2028, said the nonpartisan CBO, which analyzes legislation for Congress. It warns that interest rates on government borrowing will spike, with the benchmark 10-year Treasury note, now yielding 2.8 percent, will average a 3.0 percent interest rate this year and 3.7 percent next year.