Lubbock Times

House Budget Committee Chairman Jodey Arrington (R-TX) and Ways and Means Committee Chairman Jason Smith (R-MO) have criticized the Congressional Budget Office's (CBO) latest Long-Term Budget Outlook Under Alternative Scenarios for the Economy and the Budget. The report includes an estimation of the budgetary and economic impact of making the 2017 Trump tax cuts permanent.

The Chairmen stated, “While the Congressional Budget Office provides a valuable service to Congress, its track record in predicting the economic and fiscal outcome of the 2017 Trump tax cuts is poor to say the least. It’s troubling that the CBO issued a report intended to help policymakers make decisions about future legislative initiatives without ever asking for input from those they are trying to assist. Without this input, studies and analyses become less helpful in decision-making processes and appear as if policies are being cherry-picked for analysis."

They further asserted that contrary to CBO's predictions, "the Trump tax cuts resulted in economic growth that was a full percentage point above CBO’s forecast, and federal revenues far outpaced the agency’s predictions." They highlighted that under Trump's tax policies in 2022, tax revenues reached a record high of nearly $5 trillion, with revenues averaging $205 billion above CBO predictions for four years following implementation of the law.

The Chairmen also emphasized that beyond contributing to economic growth and federal revenues, "the Trump tax cuts provided major benefits to working families." They cited falling poverty levels, declining unemployment rates among minorities and those without college degrees, rising median household income by $5,000, wage increases by nearly 5 percent, and an average tax cut of 16 percent for Americans earning under $100,000.

In contrast, they warned against President Biden's proposed expiration of the Trump tax cuts which would result in increased taxes for families earning $75,000 today by an extra $1,500. They also cautioned that the Child Tax Credit would be halved, small businesses would face tax rates exceeding 40 percent, and farmers might have to consider selling their family businesses due to a rising death tax. In President Biden's budget, he has called for upwards of $7 trillion in new taxes.

Republicans believe working families do not need the IRS taking any more out of their pockets, especially at a time when they are already paying for the nearly 20 percent increase in prices under ‘Bidenflation.’ "That is why Ways and Means Republicans established tax teams that are looking to build on the success of the Trump tax cuts to keep taxes low for working families and small businesses and to produce the same sort of dynamic economy that CBO sadly failed to predict.”