The Republican-led Congress is moving forward with a sweeping tax legislation, dubbed the “One Big Beautiful Bill,” which marks a significant shift in the party’s economic agenda. Gone are the days of prioritizing corporate tax cuts; instead, lawmakers have turned their attention to populist giveaways inspired by President Donald Trump’s campaign promises.
Critics, including conservative experts who initially supported the 2017 tax legislation, warn that this bill will sacrifice long-term economic growth to deliver short-term political benefits. Unlike its predecessor, which focused on a large corporate tax cut aimed at boosting investment, this year’s measure showers smaller amounts of cash on tens of millions of households through reduced taxes and bigger deductions.
The shift in priorities has complicated the difficult budget math facing Senate Republicans, who must now balance populist promises with pro-growth measures. Trump administration officials argue that nonpartisan estimates of the tax law’s impact are flawed, but independent analysts paint a more dire picture, citing trillions of dollars in added debt and limited economic growth.
In 2017, lawmakers touted the bill as a pro-growth policy, promising to stimulate investment and job creation. However, economists now say that many of these provisions have become largely “retroactive,” delivering benefits for prior behavior rather than incentivizing new investment or output. The party’s shift towards populist measures has created hundreds of billions in new obligations, making it harder to find room for genuine pro-growth policies.
Defenders of the legislation argue that Trump administration officials are delivering on both populist promises and pro-growth changes. However, independent analysts point out that many of these measures have become largely “extinguished,” limiting their potential impact on economic growth.
The bill’s provisions include a partial repeal of the cap on state and local tax deductions, expanding a deduction for businesses formed as pass-through entities, and increasing the child tax credit. While some argue that these measures are aimed at boosting economic output, independent analysts say they do little to increase investment or stimulate growth.
Ultimately, the party’s shift towards populist measures over pro-growth policies has raised concerns about the bill’s long-term impact on the economy. As lawmakers navigate the complexities of this legislation, it remains to be seen whether their efforts will deliver meaningful economic benefits or simply extend existing tax cuts for all income brackets.
Source: https://www.washingtonpost.com/business/2025/06/09/trump-tax-bill-gop