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Trump's tax bill is “beautiful” – with an expensive restriction

Trump's tax bill is “beautiful” – with an expensive restriction

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Donald Trump's tax plan could revive the economy, but the congress and the president have to capture the landing. The legislation that makes it is too expensive.

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I have four children and spend more than 1,000 US dollars a month for food. Spending 250 US dollars a week does not bring me the amount of food that it used to be earlier, much for the dismay of my teenagers.

From 2020 to 2024, food prices rose by almost 24%because the inflation rate rose. Inflation has slowed down to 2.4%, which was lower than expected in March, but the aftersets from years of composite prices remain.

From single parents to the elite of the east coast, dealer for workers to Bitcoin billionaires, which harm more for everyday goods.

President Donald Trump entered the office with a mandate of voters to remedy the economy: lower taxes, reduce inflation and restore well -paid jobs for normal Americans.

In the taxist, Finance Minister Scott Bessent vowed to say goodbye to Trump's “Big, Beautiful Bill”, which promises several tax cuts by the independence day.

The invoice includes an extension of the law on tax reductions and jobs 2017 and can eliminate taxes on tips, overtime and social security benefits.

The draft law is also flooded with additional expenses, which is counterproductive for efforts to reduce inflation and that threatens even more debts.

Opinion: Trump's first 100 days blew me away. He delivers his promises.

The Republicans in the Congress are struggling to determine the details of the proposed tax cuts, including an upper limit for the discount of the federal government for state and local taxes. But otherwise it becomes not very important if Trump and Congress Republicans do not enact legislation that helps people with children like me and other Americans who have little lead in their salary checks.

Trumps right to fix the economy with tax cuts

Trump disturbed the norms and annoyed critics when he tried to retrofit our economy. It was a bumpy ride.

The gross domestic product in the first quarter shrank a small amount, mainly because of Trump's tariffs. The fears of a recession have increased and Trump's approval ratings have decreased, especially because of the economic uncertainty he created.

Not all bad news is. The employers hired a solid number of new workers in March and April, and unemployment remains at a low 4.2%. The stock markets that went back in the first quarter of brutal pace have recovered well in the past few weeks. And the Federal Reserve could reduce interest rates, which make the Americans' credit costs facilitate and recharge their batteries in the markets.

However, the expansion of Trump's tax cuts will be the best incentive for the economy. Most Americans do not recognize how important this expansion is for their finances. In 2017, Trump's tax cuts increased the standard income deduction from $ $ 12,000 for individual filers and from USD 13,000 to USD 24,000 for common returns.

The average budget received a tax cut between 1,500 and 3,000 US dollars a year.

“The tax cuts of 2017 that they expand were good reform of growth,” said Adam Michel, director of tax policy studies at the Cato Institute. “It simplifies tax payment, reduced taxes and ensured that more (goods) were made in the United States. Investments are the rear bones of long -term economic growth, which leads to higher productivity and higher wages and companies that carry out more activities than elsewhere.

Opinion: We pay too much taxes. I want Trump to repair it.

However, Michel said that the plans to eliminate taxes to tips, overtime and social security are “expensive gimmicks that no longer grow the package”.

He dismissed the argument of the progressive that tax laws will only help wealthy Americans.

Trump's 'big, beautiful bill' would spend too much

Trump's massive invoice has a disadvantage: it is full of too much expenses.

The Congress budget office in 2025 in the financial year of 1.9 trillion US dollars of about the same as in the deficit of last year. The inflation of the debts continues to promote inflation and slow down economic growth.

The Republican Republican of Texas, Chip Roy, has shaped the dangers of more deficiency editions.

“If we do not lower the expenditure together with tax cuts, the inflation tax will continue to withdraw American prosperity,” Roy recently published it on X.

He reluctantly voted for an early version of Trump's tax legislation, but said that he had been promised cuts for claims programs and the removal of tax credits for clean energy in the final invoice.

Trump's tax plan could revive the economy, but the congress and the president have to capture the landing. The legislation that makes it is too expensive.

As Michel said:

Why not both? My food bill – and yours – depends on it.

Nicole Russell is a columnist at USA Today and mother of four children who lives in Texas. Contact you at nrussell@gannett.com and follow her on X, formerly Twitter: @Russell_nm. Register here for your weekly newsletter, the right track.

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