Overview
On November 26, the Congressional Budget Office (CBO) released its cost estimate of the Reconciliation Recommendations of the Senate Committee on Finance (the Tax Cuts and Jobs Act, as reported by the committee on November 16). The CBO report describes significant estimated changes in federal tax revenues and direct spending under the Act and identifies the estimated deficit increases subject to pay-as-you-go procedures for 2018-2027. The report also estimates the allocation of changes in federal tax revenues and federal spending across income categories, concluding that "overall, the combined effect of the change in net federal revenues and spending is to decrease deficits (primarily stemming from reductions in spending) allocated to lower-income tax filing units and to increase deficits (primarily stemming from reductions in taxes) allocated to higher-income tax filing units."