House Republicans are moving forward with President Donald Trump’s ambitious tax cut proposal, despite a new government report warning that the legislation could significantly widen the federal deficit. The bill, a cornerstone of Trump’s economic agenda, is aimed at extending and expanding the 2017 tax law provisions.
Unveiled this week, the legislation includes sweeping reductions in individual and corporate tax rates, and would make permanent several cuts initially set to expire in 2025. Proponents argue the move will stimulate economic growth and benefit middle-class families, while critics warn it risks ballooning the national debt and disproportionately favors the wealthy.
The Congressional Budget Office (CBO) released an analysis on Tuesday projecting that the bill would add nearly $4.6 trillion to the deficit over the next decade. Despite this, Republican lawmakers are pressing ahead, planning to bring the bill to a floor vote in the coming weeks.
House Speaker Mike Johnson defended the legislation, calling it “a bold and necessary step to secure America’s financial future.” Democratic leaders, however, condemned the move as “fiscally reckless,” with Senate Majority Leader Chuck Schumer warning it could lead to “long-term damage to America’s fiscal stability.”
The timing of the proposal has also raised eyebrows, as the U.S. faces growing costs from defense spending, entitlement programs, and interest payments on existing debt. Economists remain divided on whether tax cuts at this scale could deliver the promised economic growth needed to offset the revenue loss.
This tax bill is likely to become a central issue in the 2026 midterm elections, with both parties framing it as a referendum on economic priorities.
