FIRST ON FOX: A key U.S. economic agency is projecting that President Donald Trump’s tax policy in his “one big, beautiful bill” will lead to increased take-home pay for American families and higher wages for U.S. workers.
The Council of Economic Advisers (CEA), which advises the White House on economic policy, released a report on Monday morning that said, “Taken as a whole, the CEA estimates that the tax cuts in the President’s proposals and the One Big Beautiful Bill will substantially boost investment and GDP relative to if expiring provisions from the [Tax Cuts and Jobs Act] are not extended.”
Congressional Republicans are working to permanently extend Trump’s 2017 Tax Cuts and Jobs Act (TCJA), as well as implement a list of new, shorter-term Trump tax policies, like eliminating penalties on tipped and overtime wages, while granting seniors an added tax deduction.
Republican leaders have warned that failure to extend TCJA could lead to a tax increase of up to 22% for millions of families.
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Republicans are working on President Donald Trump’s tax and spending bill. (Getty)
However, extending them could lead to more money in people’s pockets in the long run, the CEA said.
“For workers and families, the CEA forecasts that wages will be about $6,100 to $11,600 higher, with family take-home pay $7,800 to $13,300 higher because of the increase in wages and reduction in tax obligations,” the new analysis said.
The CEA said the added deduction for seniors, meanwhile, would increase the average take-home pay for qualifying seniors by approximately $400 to $450 per year.
If passed, the policies would also boost U.S. investment in the long run from 4.9% to 7.5%, according to the projection, and could save or create as many as 4.2 million full-time equivalent jobs in the long run.
It also estimated that Trump’s “no tax on tips” proposal alone would increase tipped workers’ pay by an…
