After a positive Consumer Price Index report was released on Wednesday, the White House released a statement summarizing how the policies of the Trump administration will continue combating the effects of inflation. According to the White House, President Trump’s ‘Big Beautiful Bill” will capitalize on the economic momentum and “supercharge” the economy for working Americans.
Secretary of the Treasury Scott Bessent testified before the House of Representatives on Wednesday, summarizing the administration’s position on the spending bill and how it will continue the economic progress made thus far under the Trump administration.
Bessent stated that the bill would represent the largest tax cut in U.S. history and would make the 2017 tax cuts passed under the first Trump administration permanent. He went on to point out that establishing these tax cuts would enhance economic confidence and be a crucial step towards maintaining economic progress for working and middle-class Americans.
In his testimony, Bessent referenced findings from the President’s Council of Economic Advisors about how the bill would impact average American families. The advisory report released in May projected that the bill would result in an increase of $6,100 to $11,600 in higher wages per worker and $7,800 to $13,300 in higher take-home pay for a typical family with two children.
Bessent also stated the bill would establish major tax policies advocated by President Trump during his 2024 presidential campaign, including no taxes on tips, no taxes on overtime, and tax cuts for seniors.
Bessent warned that failure to pass the bill would be “cataclysmic” and would effectively create the largest tax increase in U.S. History by allowing the 2017 tax cuts to expire.
“It is what we call in economics a sudden stop…It would be a disaster for businesses, for working Americans, and for our status in the world,” Bessent said. “We would see increases in taxes of thousands of dollars on working Americans, we would see businesses contract and we would see a substantial increase in the unemployment rate.”
Bessent’s testimony followed significant economic developments, including a ruling by a federal appeals court on Tuesday that will allow President Trump’s tariff policy to remain in place, and an announcement from President Trump on Wednesday that the U.S. and China have reached a trade agreement.