Press Release
March 26, 2025
CBO Estimates Long-term Fiscal Impact of a Permanent TCJA
In a recent letter, the Congressional Budget Office (CBO) analyzed two alternative scenarios on either extending or making permanent the Tax Cuts and Jobs Act of 2017 (TCJA) and the expected impact on the nation’s long-term fiscal outlook. In a new insight, Director of Fiscal Policy Jordan Haring walks through these projections.
She concludes:
CBO’s latest projections show that a permanent, unpaid-for TCJA extension would significantly worsen the long-term budget outlook. As policymakers work to address the TCJA’s looming expiration, they should make an honest effort to offset any extensions.
