Economic Forecast Reveals Promising Benefits for Families and Workers in Trump’s Tax Proposal

Economic Forecast Reveals Promising Benefits for Families and Workers in Trump’s Tax Proposal

FIRST ON FOX: A significant U.S. economic agency has released projections indicating that President Donald Trump’s tax policy, commonly referred to as his ‘big, beautiful bill,’ may provide American families with increased take-home pay and higher wages for workers nationwide.

The Council of Economic Advisers (CEA), which provides key economic guidance to the White House, published a report early on Monday asserting that if Trump’s proposed tax cuts are implemented, the benefits to investment and GDP would be substantial. The CEA stated that these new provisions would yield much better economic outcomes compared to if the expiring provisions from the 2017 Tax Cuts and Jobs Act (TCJA) are not extended.

Republicans Push for Permanent Extensions of Tax Cuts

In a concerted effort, Congressional Republicans are pushing to permanently extend the existing TCJA while also introducing an array of new tax policies. These proposals include eliminating penalties on tipped wages and overtime pay, alongside providing an extra tax deduction aimed at supporting seniors.

Republican leaders have issued cautionary notes, warning that failure to extend the TCJA could potentially result in tax increases averaging 22% for millions of families across the nation.

Such tax policies, according to the CEA, could have long-term benefits resulting in more disposable income for households.

Wage and Income Projections

The CEA’s analysis presents an optimistic forecast, claiming that wages could rise between $6,100 and $11,600 per household. Additionally, families could see their take-home pay rise by $7,800 to $13,300 due to improved wages coupled with decreased tax liabilities.

The proposed added tax deduction for seniors would aim to further enhance financial security, increasing the average take-home pay for qualifying seniors by approximately $400 to $450 annually.

If enacted, the policies are estimated to stimulate U.S. investment, lifting it to between 4.9% to 7.5% while potentially saving or creating up to 4.2 million full-time equivalent jobs over time.

Impact on Tipped and Overtime Workers

One notable aspect of Trump’s proposal is the