The Big Beautiful Bill Act will decrease the deficit by $1.4 trillion, according to Office of Management and Budget Director Russell Vought.
Regarding any accusations that the bill would increase the deficit and debt, Vought disagreed, and criticized the Congressional Budget Office for using an “artificial baseline” when measuring impact of fiscal policy, saying that “[W]e use an accurate baseline based on the real world.”
The CBO, as well as other independent observers, make their assessments based on the notion that “spending will continue into eternity, but current law tax levels will not,” Vought said.
Vought called the bill “historic,” since it would cut $1.4 trillion in deficits when adjusted for such assumptions.
The bill includes welfare reform as part of its $1.7 trillion in mandatory savings, Vought said, adding that recent systems are akin to a “benefit hammock.”
“We haven't seen anything like this since the 1990s,” Vought said.
Three trillion in revenue from tariffs are projected as well by the administration, aligning with the projections by the CBO.
Vought explained that the bill, while not perfect, is “fundamentally an agenda bill,” so it can’t address all proposed cuts in spending or adjustments in tariffs.
Rather, the bill is “one piece of the puzzle,” and the Trump administration is “maximizing what can be accomplished to deal with debt and deficits in this bill.”
On Wednesday, the White House released a statement lauding the bill, saying:
Secretary of the Treasury Scott Bessent told Congress how the One Big Beautiful Bill — the largest tax cut in history — will boost that progress for middle-class Americans and the private sector without fueling inflation:
- “The One Big Beautiful Bill will raise take-home pay between $7,800 and $13,300 for the average family of four. It will increase wages between $6,100 to $11,600 for the average worker.” (Watch)
- “Not only does the One Big Beautiful Bill add $500 to the Child Tax Credit, it makes it permanent.” (Watch)
- “It will cement No Tax on Tips, No Tax on Overtime, and tax cuts for seniors.” (Watch)
- “The One Big Beautiful Bill will make the 2017 tax cuts permanent. This will provide individuals and businesses with certainty and build economic momentum.” (Watch)
- “The legislation will provide 100% expensing for new factories, as well as existing factories that expand operations and support Made in America.” (Watch)
- “The legislation will provide … the ability to buy a new American-made car and deduct the interest.” (Watch)
- “This bill will allow us to prevent our corporate revenues from being drained into foreign treasuries — and that is in the hundreds of billions of dollars.” (Watch)
- If the One Big Beautiful Bill doesn’t pass, “it would be cataclysmic. It would be the largest tax hike in history. It would be a disaster for businesses, for working Americans, and for our status in the world … 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.” (Watch)
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