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Jun 28, 2025 Senate Democrats challenged Republicans' use of a 'current policy baseline' accounting method that treated $3.8 trillion in tax cuts as costing nothing Corroborated Institutions and Governance
A novel budget accounting maneuver obscured the true fiscal cost of tax cuts, raising questions about transparency in the reconciliation process.
Independently corroborated by3 independent news desks
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- Democrats challenged Republican accounting gimmick on tax cuts — Senate Democrats, led by Chuck Schumer, challenged Republicans' use of a "current policy baseline" accounting method that treats $3.8 trillion of Trump tax cut extensions as costing zero dollars. Democrats argue the method violates Senate reconciliation rules. Republicans cannot meet their $1.5 trillion deficit reduction target if they count the full ten-year cost of extending Trump's tax cuts, making the alternate baseline essential to the bill's viability.
- Senate adopts "current policy baseline" accounting method for tax cuts — The Senate voted 53-47 to adopt a "current policy baseline" that treats $3.8 trillion in Trump tax cut extensions as costing zero dollars for budget reconciliation purposes. All Republicans voted yes. This marks the first time this accounting method has been used in a filibuster-proof reconciliation process to meet budget targets, establishing a precedent that could allow future majorities to pass massive permanent programs by scheduling expiration dates and declaring extensions cost-free.
- White House disputes Congressional Budget Office deficit projections — The Trump White House issued statements on its official website claiming the One Big Beautiful Bill would reduce deficits by over $2 trillion through economic growth and waste reduction, while dismissing the Congressional Budget Office as having "a terrible record" with predictions and lacking credibility. The White House asserted the bill would "unleash our economy" and prevent "the largest tax hike in history."
Verified: Corroborated — 2+ independent news desks
Week 24 – 2025-06-28–2025-07-04
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