Trump’s Tax Bill: A Risky Bet During a Precarious Time
TL/DR –
The recently passed Republican “megabill” could add $3.3 trillion to the federal deficit over the next decade and increase America’s environmental risks. The bill could result in the US releasing half a gigaton more carbon pollution annually within a couple of years, increasing to a gigaton each year within a decade. The bill also threatens to slash $1 trillion from GDP over the next decade, increase household energy costs by 2% to 7% by 2035, and make the country more reliant on foreign oil imports.
Obama’s Budget Control Act Replaced by Republicans’ “One Big, Beautiful Bill Act”
Obama’s Budget Control Act, signed reluctantly in 2011 to avoid a debt ceiling crisis, is now being replaced by the Republicans’ “One Big, Beautiful Bill Act”. This bill, which passed through the House of Representatives, stands to add $3.3 trillion to the federal deficit over the next decade, heightening America’s energy and environmental risks.
The Impact on America’s Climate Change Efforts
The Republican mega bill threatens America’s efforts to combat climate change. Princeton University’s energy modelers warn of a significant increase in American carbon pollution within a decade.
Economic Consequences of the One Big, Beautiful Bill Act
While an increase in air pollution is a direct effect, the bill also has implications on the economic front. The repealing of tax credits will result in a $1 trillion slash in GDP over the next decade, as per Energy Innovation. Additionally, due to the bill, household energy costs are expected to rise by 2% to 7% by 2035.
Risks Associated with the One Big, Beautiful Bill Act
Overreliance on natural gas, increased federal deficit during peacetime, and higher trade barriers are a few of the risks associated with the bill. The House Natural Resource Committee’s permitting reform proposal may help in controlling the situation, but the risks remain substantial.
Gutting Subsidies for Electric Vehicles
The Republican mega bill has stripped away most demand-side subsidies for electric vehicles, potentially causing a significant dip in American EV sales. This could weaken the country’s economic competitiveness and make its electric vehicle industry more susceptible to external interference.
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