Tax Foundation on the House-passed 2025 tax bill

… <p>The House <a href="https://www.cbsnews.com/news/house-vote-trump-tax-bill/">passed</a> the “<a href="https://www.cbsnews.com/news/house-vote-trump-tax-bill/">One, Big, Beautiful</a>” <a href="https://taxfoundation.org/research/all/federal/trump-tax-cuts-2025-budget-reconciliation/">reconciliation</a> bill on Thursday, May 22, addressing the expirations of the 2017 <span class="glossary-term"><a href="https://taxfoundation.org/taxedu/glossary/tax/">Tax</a><cite class="glossary-term-summary">A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.</cite></span> Cuts and Jobs Act (TCJA) and making additional changes to US tax policy and spending</p> <p>Our analysis finds the tax provisions included in the House-passed bill would increase long-run GDP by 0.8 percent. The bill’s provisions would reduce federal tax revenue by $4 trillion between 2025 and 2034, on a conventional basis. On a dynamic basis, incorporating the projected increase in long-run GDP of 0.8 percent, the dynamic score of the tax provisions falls to $3.1 trillion, meaning economic growth pays for 22 percent of the tax cuts. The bill’s net spending cuts of about $1.5 trillion offset some of the revenue reduction, leading to a total budget deficit increase of $1.7 trillion over 10 years on a dynamic basis.</p> …