A new rift is emerging inside the Republican Party over how to tackle the looming expiration of the 2017 tax cuts. Rep. Thomas Massie (R-Ky.) is pushing back against the administration’s claims regarding the tax cuts and the “One Big, Beautiful Bill.”
What Happened: On Saturday, Massie hit back against Treasury Secretary Scott Bessent’s warning of a $4 trillion tax hike if Congress fails to pass Donald Trump's proposed “BBB” or “Big Beautiful Bill.”
“A $4 trillion tax hike next year would devastate American businesses and families,” Scott said on X, adding that President Trump is committed to avoiding that with his proposed legislation, something that “300 leading economists agree.”
Massie, a long-time fiscal hawk isn’t buying it, and said that “the biggest tax will be when you must monetize the debt to pay for the BBB,” which essentially refers to the Federal Reserve stepping in to buy more U.S. Government debt when there isn’t enough demand for it in the market.
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This process essentially involves the creation of money, giving rise to inflation. “The resulting inflation will substantially harm poor and middle-class families,” he says.
Massie then asks Bessent to advise the President on certain lesser-discussed portions of the bill, such as the potential removal of the $10,000 cap on state and local tax (SALT) deductions. “You should advise the President to remove the $300b SALT bribe to NY and CA millionaires," Massie said. “His 2017 TCJA (Tax Cuts and Jobs Act) didn't have it.”
This exchange highlights the growing divide within the GOP, particularly regarding the budget, inflation, deficit spending, and special interest carve-outs.
Why It Matters: President Donald Trump has faced significant opposition from even allies on the proposed “Big, Beautiful Bill,” with even billionaire Elon Musk calling it a “disgusting abomination” last week, igniting a feud with Trump in the process.
Republicans Sen. Ron Johnson (R-Wis.) and Sen. Rand Paul (R-Ky.), among several others, have come out against the bill, echoing similar concerns of rising deficits and inflationary pressures.
Former Treasury Secretary Lawrence Summers went so far as to call Trump’s “One Big, Beautiful Bill” a prescription for “deadly, dangerous decline.”
Those within the administration, however, remain committed to the bill, with White House economic advisor Kevin Hassett claiming last week that “we’d have had a recession” if the bill wasn’t passed, saying that the government would have, in fact, lost $300 billion in revenue as a result of the fall in GDP.
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