A new economic projection from President Donald Trump’s top economic adviser, Kevin Hassett, director of the National Economic Council, has sparked discussion as it suggests that American families could see an income increase of up to $10,000 if a tax bill currently facing resistance in the Senate is passed. The legislation, which has been described as the “big, beautiful bill” by President Trump, aims to extend the Trump-era tax cuts and includes other measures designed to stimulate economic growth.
The House of Representatives passed the bill last week, but it now faces an uncertain future in the Senate where Republican senators are expressing concerns about potential increases to the federal deficit and Medicaid spending. Wisconsin Senator Ron Johnson has voiced his apprehension, stating he would oppose the bill if it contributes to the national debt.
Kevin Hassett emphasized the importance of the bill's passage, warning that failure to do so could lead to the largest tax hike in U.S. history as the previous tax cuts expire. He further cautioned that such an event could trigger a significant recession, with the possibility of a 4% decline in GDP. These stark predictions are part of a broader strategy to build public support for the bill and to sway hesitant lawmakers.
In an interview with Just the News, Hassett said, “Our own models said that we’d have that $4,000 increase in income. They now say that we’re going to get $10,000 in income for the typical family over just a few years.” He expressed optimism that the legislation would be passed by Independence Day, heralding a "golden age" of American economic revival.
The bill, in addition to preserving the 2017 tax cuts, features popular provisions such as eliminating taxes on tips and increasing funding for border security. It is also designed to incentivize job creation and attract new investments to the United States. Hassett highlighted rising consumer confidence as an indicator of the positive impact the bill is already having in anticipation of its passage.
Representative Mark Harris (R-NC) pointed out the benefits to families, particularly in preserving the child tax credit and preventing an increase in tax brackets. Trump administration officials argue that the bill is not just about tax reform but a generational chance to rejuvenate the economy and improve the prosperity of working families. Hassett remarked, “We’re giving people an incentive to go to work. We’re giving businesses an incentive to create jobs here in the U.S. and to build buildings in the U.S.”
As the debate in the Senate continues, the bill's proponents are urging quick action, emphasizing the significant income boost projected for the average household. Whether the bill fulfills this promise hinges on the upcoming decisions in the Senate.
