The One, Big, Beautiful Bill will boost the short-run real gross domestic product (GDP) by 4.2 to 5.2 percent and long-run real GDP by 2.9 to 3.5 percent.

WASHINGTON, D.C. – Renewing the Trump tax cuts will be a huge boost to America’s economy – leading to higher wages and more job creation. The One, Big, Beautiful Bill will increase GDP by up to 5.2 percent in the short-term and up to 3.5 percent in the long-run, according to the Council of Economic Advisors (CEA). Pro-growth policies, including the R&D tax credit, full expensing, interest expensing, international tax reforms, and the permanent and expanded small business deduction, in addition to President Trump’s domestic manufacturing incentives, will fuel investment in the U.S. economy.

FACT SHEET: The One, Big, Beautiful Bill Fuels America’s Economic Growth

Ways and Means Committee Chairman Jason Smith (MO-08) said:

“The first Trump tax cuts boosted the economy a full percentage point higher than the so-called experts predicted. The result was an economic boom: 5 million more jobs, higher take-home pay, more investment in America, and federal revenues $1.5 trillion higher than projected. President Trump’s One, Big, Beautiful Bill is poised to repeat history, and kickstart a new Trump economic boom. Pro-growth policies included in The One, Big, Beautiful Bill will drive manufacturers and small businesses to invest, build, and grow in America.”

The One, Big, Beautiful Bill Is Pro-Growth Tax Policy
Permanent extension of the Trump tax cuts, alongside additional pro-growth policies, will fuel a resurgence in economic growth:

• America’s real gross domestic product (GDP) to increase by an estimated 5.2 percent in the short term and 3.5 percent in the long-term. 
• 9.8 to 14.5 percent boost in investment in the next four years and a 4.9 to 7.5 percent boost in long-term investment. 
• 6.6 to 7.4 million full-time jobs saved or created in the next four years and 4.2 million saved or created in the long-term. 
• Expands and makes permanent the 199A small business deduction to 23 percent – creating over 1 million new Main Street small business jobs annually and generating $750 billion in economic growth at American small businesses.
• $284 billion in GDP to come from domestic manufacturing, according to a National Association of Manufacturer study.
• Renews 100% immediate expensing, incentive for research & development in the U.S., and deduction for interest expenses, and supports the expansion of new production factories and growing operations in America by allowing 100% expensing for new factories, improvements to existing factories, and other production facilities.
• Renews Opportunity Zone program to spur over $100 billion in new investment over the coming decade with enhancements to target rural distressed communities.

2017 Trump Tax Cuts Defied Growth Projections 
The 2017 Trump tax cuts fueled economic growth, leading to rising GDP and higher revenues even beyond initial projections from the Congressional Budget Office. 

• After the 2017 GOP tax cuts, investment in the United States grew 20 percent. 
• In the first two years after TCJA, GDP growth was a full percentage point higher than CBO’s pre-TCJA forecast and the previous 10-year average. 
• In FY 2022, tax revenues reached a record-high of $4.9 trillion – $1.6 trillion higher than when TCJA was passed and $884 billion above the Congressional Budget Office’s post-TCJA projections for that fiscal year.

READ: STUDY: Extending Trump Tax Cuts Would Boost Jobs, Wages, and Economic Growth