WASHINGTON, D.C. – Just as Republicans unleashed an economic boom after passing the 2017 Trump tax cuts, the recently enacted working families tax cuts are projected to “boost employment, income, consumer spending, business investment, and potential output,” according to an update from Congress’s budget scorekeeper. The Congressional Budget Office’s (CBO) latest report on the “Current View of the Economy from 2025-2028” notes that as a result of recently enacted tax reforms, the economy for the next few years is now larger.

“Taken together, provisions in the 2025 reconciliation act are projected to boost employment, income, consumer spending, business investment, and potential output in the near term. As a result of those effects, the U.S. economy from 2025 to 2028 is larger than it otherwise would have been.”

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

“We’ve known all along that tax cuts for working families and small businesses will produce more jobs, more economic growth, and bigger paychecks for workers, families, and seniors. Now, even the often-critical CBO admits it. President Trump is delivering exactly the relief needed following the dismal economy and inflation crisis that Democrats created. 

“CBO even increased its projections for economic growth in 2025 and 2026, specifically because Republicans were able to prevent the scheduled expiration of the 2017 Trump tax cuts, just as we promised. The same forecaster predicted before President Trump took office that our GDP would be stuck at 1.9 percent, but our economy grew at 3.3 percent in the second quarter – and we’re on track to grow even more.”

Key Excerpts from CBO’s “Current View of the Economy From 2025 to 2028”:

Greater economic growth thanks to the 2025 working families tax cuts:

• “Growth next year is 0.4 percentage points higher than in the previous projections, reflecting the reconciliation act’s boost to consumption, private investment, and federal purchases…”
• “…[P]rovisions in the 2025 reconciliation act are projected to boost employment, income, consumer spending, business investment, and potential output in the near term. As a result of those effects, the U.S. economy from 2025 to 2028 is larger than it otherwise would have been.”
• “On their own, the policy changes stemming from the reconciliation act led CBO to increase its projections of economic growth in 2025 and 2026, which previously reflected the scheduled expiration of temporary provisions of the 2017 tax act.”

Most Americans got a tax cut:

• “CBO’s current forecast reflects the budgetary and economic effects of the 2025 reconciliation act, which reduced taxes for the vast majority of households.”

The new tax law successfully prevented the expiration of the 2017 Trump tax cuts and targeted working families with new tax relief:

• “The 2025 reconciliation act permanently extended expiring individual income tax provisions and changed the tax code to permanently allow for the full expensing of certain capital investments, including investments in equipment as well as those in research and development. In addition, the law added temporary tax measures (such as changes to the treatment of qualified income from tips, overtime pay, state and local taxes, passenger vehicle loan interest and the costs of certain manufacturing structures, and the enhanced deduction for taxpayers age 65 and older)…”