Extending Trump's tax cuts could 'run the deficit into the stratosphere.' Here's how much that could cost.

By Robert Schroeder

Fresh estimate covers individual, estate taxes

Extending a spate of the 2017 tax cuts enacted under former President Donald Trump could cost $4.6 trillion over 10 years, according to a fresh estimate that's drawing condemnation from congressional Democrats.

The estimate from the Congressional Budget Office takes into account tax cuts for individuals, estates and other provisions which are scheduled to expire at the end of 2025.

Trump, the presumptive Republican nominee for president, has indicated he wants to make tax cuts permanent. President Joe Biden has repeatedly pledged not to raise taxes on families making $400,000 or less a year.

Two top congressional Democrats slammed the new estimate in statements on Wednesday.

"The Republican tax plan is to double down on Trump's handouts to corporations and the wealthy, run the deficit into the stratosphere, and make it impossible to save Medicare and Social Security or help families with the cost of living in America," said Senate Finance Committee Chairman Ron Wyden of Oregon.

Senate Budget Committee Chairman Sheldon Whitehouse, a Rhode Island Democrat, called the Trump tax cuts "a rotten deal for American families and small businesses" and said their impending expiration gives Congress a chance to "undo the damage."

Changes to the tax code will depend on which party controls the White House and Congress after November's elections.

Karoline Leavitt, a Trump campaign spokeswoman, told MarketWatch in a statement that the former president favors more tax cuts if he wins the election in November.

"When President Trump is back in the White House, he will advocate for more tax cuts for workers, families and all Americans and reinvigorate America's energy industry to bring down inflation, lower the cost of living and pay down our debt," Leavitt said.

House Ways and Means Committee Chairman Jason Smith, a Missouri Republican, and House Budget Committee Chairman Jodey Arrington, a Texas Republican, defended the 2017 tax cuts in statement and said they are looking for ways to extend them.

"Ways and Means Republicans established tax teams that are looking to build on the success of the Trump tax cuts to keep taxes low for working families and small businesses and to produce the same sort of dynamic economy that CBO sadly failed to predict," the congressmen said.

Market Extra: Companies race to borrow ahead of the Biden-Trump election, with cost of 2017 tax cuts in focus

-Robert Schroeder

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05-09-24 1057ET

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