On Monday’s broadcast of the Fox Business Network’s “The Bottom Line,” Rep. Chip Roy (R-TX) stated that the Republican tax and spending bill has “a lot of stuff like child tax credits, standard deductions, lower marginal rates for lower-end brackets. None of that is high-growth tax policy.” And he wants to see some of the spending levels in it reduced.
Roy stated that he wants to see the deficit spending in the first five years brought down and said, “[W]ould you go bet your life savings that, in five years, we’re going to wake up and find those savings? No. The problem is, we’re going to be ramping up deficits for the next three or four years. Now, some of that’s okay. Tax policy that we want to put in place for growth, and we want to make sure we’re dealing with the border and the defense, I get that. But the idea that we’re going to have magical savings in five years never materializes.”
He continued, “And I think one other point about this, the tax policy is not high-growth tax policy. The expensing is important, but the corporate rate reductions are already permanent. We’re talking about a lot of stuff like child tax credits, standard deductions, lower marginal rates for lower-end brackets. None of that is high-growth tax policy. So, I’m a little skeptical of the out-year on that. I think the growth we’re going to get is from the stuff we’re hearing Scott Bessent and the president talking about, and that, by the way, is why we assume 2.6% growth and we assume 2.5 trillion dynamic scoring.”
Roy further stated that there are some pro-growth tax policies in the bill.
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