This will boost take-home pay for Americans, economic official says

About this Video

• Video Title: This will boost take-home pay for Americans, economic official says
• Channel: Fox Business
• Speakers: Larry Kudlow (Host), Steve Myron (Chair of the Council of Economic Advisers)
• Duration: 00:06:21

Introduction

This Fox Business interview discusses the economic impact of a proposed tax cut and deregulation bill. The main focus is on the differing predictions of economic growth and deficit increases between the Council of Economic Advisers and the Congressional Budget Office (CBO). The Chair of the Council of Economic Advisers argues that the bill will significantly boost GDP, create jobs, and increase take-home pay for American families, despite projected deficit increases.

Key Takeaways

• The Council of Economic Advisers predicts a 4.2-5.2% boost in GDP over four years due to the proposed bill, creating 7 million new jobs and increasing take-home pay for a typical family of four by $8,000-$13,000.
• The Congressional Budget Office (CBO) projects the tax cuts will cost close to $4 trillion, despite rising revenues since 2017. The CBO's baseline projects a $20 trillion increase in deficits over 10 years.
• The discrepancy in projections stems from the CBO's scoring process, which the Council of Economic Advisers argues omits factors like increased economic growth and tariff revenue that would significantly reduce the deficit.
• The proposed bill includes potential savings from Medicaid and other programs, further impacting deficit projections.
• The interview highlights the debate surrounding the economic effects of the proposed bill and the differing methodologies used to assess its impact.