The White House is intensifying its efforts to promote the GOP’s megabill ahead of a Senate vote, as the Council of Economic Advisers (CEA) submitted its first analysis of the legislation to Congress. The CEA report, based on the Senate Finance Committee’s draft, claims the tax plan could bolster economic growth, create over 1 million jobs, and reduce deficits by up to $2.3 trillion over a decade. However, economists are skeptical, arguing the plan’s limited business tax breaks and focus on individual tax cuts could lead to higher debt and increased interest rates, potentially slowing economic growth.
The tax plan, known as the One Big Beautiful Bill Act, is designed to provide tax relief for individuals and businesses, with the CEA emphasizing its potential to increase investment and boost wages. However, critics argue that the plan’s emphasis on long-term business tax cuts is its main strength, and the proposed adjustments may not significantly impact overall economic growth. The Senate Republicans, including Majority Leader John Thune and Finance Chair Mike Crapo, are pushing for the permanency of the business tax cuts, which they believe will enhance investment and wages. Despite these efforts, the House’s earlier tax plan faced criticism from fiscal hawks even after its passage, and similar skepticism is emerging within the Senate’s own conservative faction.
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