According to a recent report from the Council of Economic Advisers, President Trump’s much-touted One Big, Beautiful Bill could potentially increase take-home pay by as much as $13,300 and boost wages by up to $11,600.
“An influential U.S. economic body has indicated that President Donald Trump’s tax strategy encapsulated in his ‘one big, beautiful bill’ is set to enhance take-home pay for American households and elevate wages for workers across the nation.”
The Council of Economic Advisers (CEA), which serves as the economic policy think tank for the White House, published its findings on Monday morning. The report states that, “In aggregate, the CEA anticipates that the tax reductions proposed in the President’s plan, alongside the One Big Beautiful Bill, will significantly enhance investment and GDP compared to a scenario where the expired provisions of the [Tax Cuts and Jobs Act] are not renewed.” […]
“For American workers and their families, the CEA predicts that wages could rise between $6,100 and $11,600, while family take-home pay might increase by $7,800 to $13,300, driven by wage growth and lower tax liabilities,” the report elaborated.
Moreover, the CEA noted that the introduction of an additional deduction for seniors is expected to raise the average annual take-home pay for eligible seniors by approximately $400 to $450.
If enacted, these policies could propel U.S. investment from a projected 4.9% to 7.5% in the long term, with the potential to save or create as many as 4.2 million full-time equivalent jobs over time.
Additionally, the report indicated that Trump’s proposal to eliminate taxes on tips could enhance the earnings of tipped workers by an average of $1,675 annually. The removal of taxes on overtime wages is projected to encourage overtime workers to increase their hours by 4.7%, which would lead to a modest 0.2% rise in overall labor supply while this measure is in effect.
“Consequently, GDP is anticipated to grow by 0.1 to 0.2% in the short term. The average overtime worker stands to gain a tax break ranging from $1,400 to $1,750 per year,” the projection stated.
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