Trump’s tax and spending bill to boost take-home pay, worker wages: WH advisers
The Council of Economic Advisers (CEA) has released a report projecting that President Donald Trump’s tax policies will lead to increased take-home pay for American families and higher wages for U.S. workers. The report stated that the tax cuts proposed by the President, along with the extension of the Tax Cuts and Jobs Act (TCJA), will substantially boost investment and GDP.
The Republican lawmakers are working on passing a new tax and spending bill that includes the permanent extension of the TCJA, as well as implementing new tax policies such as eliminating penalties on tipped and overtime wages. Failure to extend the TCJA could result in a tax increase of up to 22% for millions of families, according to Republican leaders.
The CEA estimates that wages could increase by $6,100 to $11,600 for workers, with family take-home pay rising by $7,800 to $13,300 due to higher wages and reduced tax obligations. The added deduction for seniors could increase their average take-home pay by approximately $400 to $450 per year.
The policies proposed by President Trump could also boost U.S. investment from 4.9% to 7.5% in the long run and create or save as many as 4.2 million full-time equivalent jobs. The “no tax on tips” proposal would increase tipped workers’ pay by an average of $1,675 per year, while eliminating the tax on overtime wages would lead to a 0.2% increase in aggregate labor supply.
White House press secretary Karoline Leavitt emphasized that the tax bill would give Americans the largest tax cuts in history, allowing them to keep more of their hard-earned money. She warned that if Democrats prevent the extension of the Trump tax cuts, Americans could face the largest tax hike in history amounting to $4 trillion.
Republicans have refuted claims that the tax bill benefits only the wealthy, noting that the top income tax bracket remains unchanged at 37%. They argue that the bill focuses on providing tax relief to working and middle-class Americans without raising taxes on any individuals.
The House Republicans are working to pass Trump’s comprehensive bill through the budget reconciliation process, which lowers the Senate’s threshold for passage to 51 votes. They aim to have the bill on the President’s desk by the Fourth of July.
In conclusion, the CEA’s report highlights the potential benefits of President Trump’s tax policies for American families and workers. The proposed tax cuts and extensions could lead to higher wages, increased take-home pay, and greater investment in the U.S. economy. As the debate over the tax bill continues, it remains to be seen how these policies will impact the American economy in the long run.
