The One Big Beautiful Bill Act extends and expands the Trump 2017 Tax Cuts, stopping a disastrous $4.5 trillion tax increase that would devastate American families and businesses. The tax title includes critical pro-growth measures, including full expensing for capital investments in structures for manufacturing, agriculture, and resource extraction – a free market, pro-growth policy that our friends at the Club for Growth, the Committee to Unleash Prosperity and other pro-growth advocates have consistently championed as necessary for renewing industrial investment in the United States. The bill also reinstates full expensing for short-term investments and R&D, expands interest deductibility by returning to the EBITDA standard, and raises the Section 179 expensing limit.
The bill ensures no increases in marginal tax rates and avoids harmful levies on stock buybacks and carried interest—proposals that pro-growth advocates have consistently opposed. We are pleased that House Republicans rejected these anti-growth measures.
In addition, the bill includes important reforms to reduce wasteful spending and promote upward mobility through common-sense changes to federal welfare programs.
First, it establishes community engagement requirements for able-bodied adults without dependents (ABAWDs) for those between the ages of 19-64 enrolled in Medicaid. This reform is supported by the vast majority of the American people, who recognize that it is immoral for able-bodied individuals to receive taxpayer support without participating in productive activities that will enable them to escape government dependence.
It also repeals much of the Inflation Reduction Act, like tax credits for electric vehicles and residential energy products.
The tax package as a whole not only averts the potential recessionary impact of a historic tax hike, it additionally provides for long-term economic growth, job creation, and higher pretax wages and after-tax incomes for American families. Although the CEA studies do not explicitly study the impact of the tax package on inflation dynamics, the heavy emphasis on supply-side incentives and the experience of low inflation following passage of the TCJA during the first Trump Administration suggests that the current tax package will lay a strong foundation of non-inflationary growth and greater affordability.
Looking at the cumulative impact of all the business tax provisions thus far analyzed, the Council of Economic Advisors found that investment is 4.9 to 7.5 percent higher, the level of real GDP is 0.4 to 0.6 percent higher in the short run and 1.1 to 1.8 percent higher in the long run, and long run real wages are higher by $6,100 to $11,627.
No doubt $6,100 to $11,627 is peanuts to the self-appointed elite in DC’s media and politics swamp, but to working families outside the Beltway in real America that money makes a genuine difference in their quality of life – it’s the difference between staying home and keeping the old clunker or going on a family vacation and financing a new car.
Now, it’s on to the Senate and time for Republicans to show whose side they’re on and get the final bill passed. The Capitol Switchboard is (202-224-3121), we urge CHQ readers and friends to call their Senators TODAY to demand they work five days a week until President Trump’s One Big Beautiful Bill is passed and on his desk for signature.
- Big Beautiful Bill
- Freedom Caucus
- Conservative Holdouts
- Rep. Chip Roy
- Art of the Deal
- Josh Brecheen,
- Andrew Clyde,
- Ralph Norman,
- Lloyd Smucker (Pa.)
- Committee Review
- SALT tax
- Blue State taxes
- Medicaid cuts
- illegal immigrants eligibility
- Rep. Ken Calvert
- Senator Josh Hawley
- Energy subsidies
- Work requirements
