June 25,2025

New Analysis: Senate Tax Bill Drives Deficit Reduction by Igniting Economic Growth

Washington, D.C.--U.S. Senator Mike Crapo (R-Idaho), Chairman of the Senate Finance Committee, issued the following statement on a new analysis from the Council of Economic Advisors (CEA) showing the Senate tax legislation will create more than $2 trillion in deficit reduction thanks to permanent provisions that power economic growth and incentivize investment. 

“Making the successful Trump tax cuts permanent will provide certainty for American job creators to spur domestic economic activity and invest in workers.  With incentives for businesses to research, build and innovate in America, these tax provisions will grow our economy the right way.”

Read the report HERE.

The CEA estimates that the tax provisions will result in the following economic effects in the first four years of implementation:

  • 7.3 to 10.2 percent higher real investment;
  • 4.6 to 4.9 percent higher real GDP;
  • $4,000 to $7,200 increased real wages per worker;
  • $7,600 to $10,900 higher annual take-home pay for a typical family with two children;
  • 6.9 to 7.2 million full-time equivalent jobs protected and created.

The CEA finds the following additional economic and fiscal impacts over the ten-year budget window:

  • $100+ billion of investment, 1+ million jobs, and hundreds of thousands of new homes to support workforce growth in Opportunity Zone communities, especially in rural areas;
  • $2.1 to $2.3 trillion in deficit reduction due to higher growth from the OBBB tax provisions;
  • $1.3 to $3.7 trillion in additional offsetting deficit reduction from higher growth unleashed by OBBB-enhanced deregulation and energy policies;
  • $8.5 to $11.1 trillion in total offsetting deficit reduction from Trump economic policies anchored by the OBBB, including discretionary spending reductions and tariff revenue;
  • Debt falls as a share of GDP to 94 percent in 2034 under Trump economic policies anchored by the OBBB instead of rising to 117 percent if the TCJA expires.

READ: CEA: The One Big Beautiful Bill: Legislation for Historic Prosperity and Deficit Reduction

Click HERE to view the Finance Committee’s 2025 Tax Reform landing page.