Trump's "Beautiful" Tax Bill Promises Big Benefits: Here’s the Catch | Opinion

I've got four children and I shell out over $1,000 monthly for groceries. These days, even spending $250 weekly isn’t enough to buy as much food as it did before, which greatly disappoints my teenage offspring.

From 2020 to 2024, food prices rose nearly 24%, with the inflation rate surging dramatically. has slowed to 2.4% , which fell short of expectations in March, but the impact from years of escalating prices persists.

Whether you're a single parent, part of the East Coast elite, a blue-collar trade worker, or a Bitcoin billionaire, everyone feels the pinch when prices rise for common items.

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President Donald Trump rolled into office with a mandate from voters to repair the economy: Cut taxes, decrease inflation, and bring back well-paid jobs for typical Americans.

Regarding taxes, Treasury Secretary Scott Bessent has vowed to pass Trump's " big, beautiful bill ", promising several tax reductions, by the Fourth of July.

The legislation features an extension of the 2017 Tax Cuts and Jobs Act and could potentially remove taxes on advice, additional earnings from working extra hours and Social Security payouts .

The legislation also includes substantial extra expenditures, which run contrary to attempts to decrease inflation and risks exacerbating the accumulation of further debt.

Opinion: The initial 100 days of Trump's presidency have been astonishing. He is fulfilling his pledges.

Republican lawmakers in Congress are finding it difficult to finalize the specifics of the suggested tax reductions, particularly concerning limitations on the federal deduction for state and local taxes. However, all these efforts may be futile unless President Trump and his Republican colleagues in Congress pass laws benefiting individuals such as myself—people with children—and other Americans whose budgets leave minimal room for error due to tighter finances.

Trump's correct approach to boosting the economy through tax reductions.

Trump has disrupted norms and angered critics in his attempt to retrofit our economy. It's been a bumpy ride already.

The gross domestic product during the initial three months shrank a small amount , largely due to Trump's tariffs. Concerns about a recession have grown, and Trump's approval ratings have dropped largely due to the financial instability he has caused.

It's not entirely bad news. Employers added substantial numbers of new employees in March and April , with unemployment still sitting at a low 4.2%. The stock markets, having plummeted sharply during the first quarter, have rebounded nicely In recent weeks, the Federal Reserve may decide to reduce interest rates. This could make borrowing cheaper for Americans and potentially stimulate further market expansion.

However, prolonging Trump's tax reductions will serve as the most effective stimulation for the economy. A majority of Americans remain unaware of how crucial this extension is for their financial well-being. Back in 2017, Trump implemented these tax cuts. increased The basic standard deduction has been raised from $6,500 to $12,000 for individuals and from $13,000 to $24,000 for couples filing jointly.

On average, households got a reduction in their taxes. varying between $1,500 and $3,000 a year.

The 2017 tax reductions that they’re prolonging were undoubtedly beneficial for fostering economic expansion," said Adam Michel, director of tax policy studies at the Cato Institute. "This measure streamlined the process of filing taxes, reduced overall taxation rates, and encouraged greater production within the U.S. By promoting investment as the cornerstone of sustained economic progress, we can anticipate increased productivity, better wages, and heightened business operations relative to other locations.

Opinion: We're spending too much on taxes. I'd like Trump to address this issue.

Michel stated that the proposals to abolish taxes on tips, overtime, and Social Security are "costly tricks that do not enhance the growth-promoting aspects of the package."

He dismissed progressives' argument that the tax bill will help only wealthy Americans.

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

Trump's massive bill does have a downside: It's packed with too much spending.

The The Congressional Budget Office has estimated A projected shortfall for the 2025 fiscal year of $1.9 trillion, which is roughly equivalent to the previous year's deficit. Accumulating additional debt contributes to inflation and hinders economic expansion.

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Texas GOP Congressman Chip Roy has been harping on The risks associated with increased deficit spending.

"If we don’t cut spending along with tax cuts, the inflation tax will continue to drain American prosperity," Roy recently posted on X.

He reluctantly voted for an early version of Trump's tax legislation, but said he was promised cuts to entitlement programs and the elimination of clean energy tax credits in the final bill.

Trump's tax plan could revitalize the economy, but Congress and the president need to stick the landing. The legislation as it stands is too expensive.

As Michel stated, "Cutting spending now is akin to implementing a pro-growth tax reduction" further down the line.

Why not pursue both options? My grocery expenses—and yours—rely on it.

Nicole Russell serves as a columnist for USA TODAY and is a parent to four children residing in Texas. Reach out to her via contact information provided. nrussell@gannett.com And follow her on X, previously known as Twitter: @russell_nm . Subscribe to her monthly newsletter, The Right Track, here .

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The article initially appeared on USA TODAY: Trump's 'lovely' tax legislation will bring significant benefits. However, there is one major drawback. | Opinion