Deficit & Debt Concerns - Investors initially anticipated government spending cuts and a 3% deficit-to-GDP ratio, but the reconciliation bill raises questions about deficit impact over the next 10 years [1] - The market has largely priced in the reconciliation bill, with concerns about deficits existing for years [4][5] - Investors are uncertain about the duration and form of tariffs, which could significantly offset the bill's cost, potentially raising 27 trillion (2.7%) in revenue over 10 years [2][3] Entitlement Programs & Future Fiscal Challenges - Social Security trust fund insolvency is projected in the early 2030s, requiring Congress to either cut retiree benefits by approximately 25% or find ways to make the fund solvent [6] - Addressing long-term deficits will likely require a moment that forces Congressional action, rather than preventative measures, due to political considerations [7] Political & Voter Perspectives - American voters do not currently view deficits as a top concern, which impacts politicians' prioritization of the issue [8]

Given the size of rich countries’ deficits, textbooks would advise, at the very least, cutting back on spending. Today’s governments prefer to double down https://t.co/cr5em9MsAT ...

The Senate version of President Donald Trump’s tax and spending measure would add nearly $3.3 trillion to US deficits over a decade, according to a new estimate from the nonpartisan Congressional Budget Office https://t.co/8TcukNrYEc ...

Macron has pledged to increase defense spending, but the increased military outlays come with hard choices for a France struggling with deficits and debt. https://t.co/vEUjwC2W7M ...

Fiscal Policy & Deficit Concerns - The industry emphasizes the importance of avoiding tax increases for Americans [3] - The industry expresses concern that the Senate bill could add up to $1 trillion of additional deficits [5] - The industry believes deficits should go down to combat inflation and lower interest rates [8] - The industry highlights the need for more cost savings to combat inflation and lower interest rates [12] - The industry notes that the House bill assumed 26% economic growth and aimed to be roughly break-even, with a potential $72 billion increase in deficits over a decade [4] Welfare & Work Requirements - The industry advocates for work requirements for those receiving benefits like Medicaid and food stamps [15] - The industry aims to return to the common sense welfare reform of the 1990s [16] - The industry points out that Medicaid benefits are projected to increase by 30% over the next 10 years under the proposed bill [19] - The industry wants to ensure that food stamp dollars are redirected to those who most need them with appropriate eligibility checks [20] Energy Policy - The industry opposes subsidizing inefficient energy that enriches the Chinese [6] - The industry wants to terminate the Green New Deal subsidies [5][8] State and Local Tax Caps - The industry opposes rewarding blue state high tax jurisdictions with a big pop to the state and local tax caps, which could cost another $350 billion [17]

boosting the richest by $12,000 a year. Joining us right now is Phil Swagel. He's the director of the Congressional Budget Office.And Phil, let's talk through some of the criticism you've received. Russ Vought said on X that this bill reduces deficits by $1.4% trillion. When you adjust for the CBO's one big gimmick, not using a realistic current policy baseline.Caroline Leavitt said that the CBO assumes long term GDP growth of an anemic 1.8%. And that's absurd. And then you had President Trump himself sayin ...