On Point | Podcast What Trump's tax bill means for your wallet
Jun 17, 2025
Erica York, VP of federal tax policy at the Tax Foundation, and Liam Donovan, GOP strategist and president of Targeted Victory, dive into the intricate implications of the One Big Beautiful Bill Act. They discuss how proposed tax changes disproportionately favor higher income earners, leaving middle and lower income groups behind. The conversation highlights the limited benefits for families and service workers, the political dynamics shaping tax policy, and a notable shift in Republican strategies on economic growth. A fascinating exploration of taxes and their real-world effects!
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Limited Growth Impact of Tax Bill
- The One Big Beautiful Bill mainly extends the 2017 tax cuts with limited impact on economic growth.
- Temporary tax provisions provide some cuts but won't fuel a significant economic revival.
Wages vs. Labor Supply
- The bill incentivizes more labor supply but does not significantly boost long-term wages.
- Productivity growth, not tax cuts alone, drives wage increases over time.
Higher Earners Benefit More
- Tax cuts in the bill benefit higher-income taxpayers more than lower income groups.
- By the end of the decade, lowest income groups may face slight tax increases due to credit changes.