WSJ Opinion: Free Expression Trump, the GOP and the ‘One Big, Beautiful Bill'
Jul 2, 2025
Economist Douglas Holtz-Eakin, former director of the Congressional Budget Office, joins to dissect Trump's ambitious ‘One Big, Beautiful Bill.’ He discusses the bill's potential benefits for the economy amid complex political dynamics. Holtz-Eakin highlights the urgent need for entitlement reform and addresses growing national debt concerns stemming from past tax cuts. Their conversation reveals rifts within the GOP and emphasizes how this significant legislation reflects broader shifts in Republican ideologies about governance and fiscal responsibility.
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Bill Avoids Tax Increase Recession
- The bill avoids a major tax increase and recession by extending the 2017 tax cuts and raising the debt ceiling without volatility.
- It includes modest pro-growth reforms but overall embraces the growing debt problem without solving it.
Medicaid Reform Is Partial
- Medicaid growth cuts will reduce federal spending, and some people may lose coverage depending on state actions.
- The bill partially reforms Medicaid, retargeting it to most needy, but a bigger overhaul is still needed.
2017 Tax Law Extension Helps Economy
- The 2017 tax law was a major reform benefiting business and growth, and extending it is positive for the economy.
- Although the new bill includes some investment incentives, it misses the opportunity for further simplification and stronger growth impact.