WASHINGTON (Reuters) -The Congressional Budget Office said on Wednesday it has estimated that a $430 billion drugs, energy and tax bill proposed by Senate Democrats would result in a net decrease in the deficit of $101.5 billion over a decade.
The crucial cost estimate https://www.cbo.gov/system/files/2022-08/hr5376_IR_Act_8-3-22.pdf from the nonpartisan fiscal referee agency shows only about one-third of the $300 million in deficit reduction touted https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf by the bill’s Democratic sponsors. But it does not include the effect of additional receipts expected from increased Internal Revenue Service enforcement activity.
The CBO estimates that extra revenue at about $204 billion over 10 years, but said it could not include that in its overall cost estimate due to its congressional guidelines.
The CBO said the bill would cut the deficit by $17.9 billion in fiscal 2023, but would increase deficits somewhat from fiscal 2024 though 2027, while cutting deficits again from 2028, with a $42.6 billion deficit reduction in 2031.
(Reporting by Eric Beech and David Lawder in WashingtonEditing by Costas Pitas and Matthew Lewis)