President Trump’s One, Big, Beautiful Bill will raise take-home pay by as much as $13,300 and wages by as much as $11,600, according to a new report from the Council of Economic Advisers.
“A key U.S. economic agency is projecting that President Donald Trump’s tax policy in his ‘one big, beautiful bill’ will lead to increased take-home pay for American families and higher wages for U.S. workers.
The Council of Economic Advisers (CEA), which advises the White House on economic policy, released a report on Monday morning that said, ‘Taken as a whole, the CEA estimates that the tax cuts in the President’s proposals and the One Big Beautiful Bill will substantially boost investment and GDP relative to if expiring provisions from the [Tax Cuts and Jobs Act] are not extended.’ […]
‘For workers and families, the CEA forecasts that wages will be about $6,100 to $11,600 higher, with family take-home pay $7,800 to $13,300 higher because of the increase in wages and reduction in tax obligations,’ the new analysis said.
The CEA said the added deduction for seniors, meanwhile, would increase the average take-home pay for qualifying seniors by approximately $400 to $450 per year.
If passed, the policies would also boost U.S. investment in the long run from 4.9% to 7.5%, according to the projection, and could save or create as many as 4.2 million full-time equivalent jobs in the long run.
It also estimated that Trump’s ‘no tax on tips’ proposal alone would increase tipped workers’ pay by an average $1,675 per year, while eliminating the tax on overtime wages ‘will cause overtime workers to increase their overtime hours by 4.7 percent, leading to a 0.2 percent increase in aggregate labor supply while the provision is in effect.’
‘As a result, the level of GDP increases by 0.1 to 0.2 percent in the short run. The average overtime worker receives a tax cut of between $1,400 and $1,750 per year,’ the projection said.”