The White House Council for Economic Advisers (CEA) has sent another memo warning members of Congress on the consequences of failing to pass President Donald Trump's tax and spending cuts agenda through the One Big Beautiful Bill Act.
"The One Big Beautiful Bill (OBBB) will provide a growth boom to the U.S. economy, helping create millions of jobs, boost families' take-home pay, spur investment and revitalize rural communities," the White House CEA told Congress in a "Ramifications of Not Passing the One Big Beautiful Bill" memo shared exclusively with Newsmax and being sent to lawmakers Wednesday.
"Failing to preserve the historic cuts from President Trump's first term in office would lead to a $4 trillion tax hike over 10 years, the largest nominal tax increase in history," the memo stated, adding, "An economic downturn would likely follow."
Warnings issued to lawmakers on the consequences of not voting to end former President Joe Biden's administration's government spending levels and allowing the 2017 Trump administration tax cuts to expire included:
- U.S. GDP will contract up to 4% over four years.
- 6.1 million full-time equivalent jobs lost.
- Up to 9.2 million Americans will lose health insurance with no countermeasures.
- A recession would raise the deficit through less tax income and higher government spending.
The insurance loss warning was a shot at Medicaid fearmongering Democrats who are unilateral in vowing to vote against any Trump budget bill. Their refusal to cast any votes for a House or Senate GOP budget bill will ironically, ultimately lead to Americans losing their health insurance by their lack of vote.
That warning was shared Sunday by a first White House CEA memo obtained by Newsmax.
But the danger of "economic downturn" by keeping Biden spending levels and allowing the Trump Tax Cuts and Jobs Act (TCJA) provisions to expire can be averted, according to Wednesday's latest CEA memo.
"By preventing the 2017 TCJA from expiring and adding the new provisions of the OBBB and the president's proposals, we would not just prevent an economic downturn but also raise growth, create jobs, boost incomes and ensure the U.S. is the most competitive business landscape in the world," the memo read.
Among the benefits of passing the OBBB, CEA estimated:
- Real GDP growth would rise an additional 4.2% to 5.2% over the next four years and 2.9% to 3.5% in the long run.
- Between 6.6 to 7.4 million full-time equivalent jobs would be saved or created over the next four years and 4.2 million in the long run.
- Investment would jump 9.8% to 14.5% over the next four years and 4.9% to 7.5% in the long run.
- An additional short-term boost to workers' wages of $6,100 to $11,600 — the typical family with two children would see $7,800 to $13,300 more in take-home pay from combined lower business taxes plus individual and household tax relief.
- Benefits to distressed communities via expanded Opportunity Zones, incentivizing more than $100 billion of new investment, creating more than 1 million jobs, and building hundreds of thousands of homes.
Eric Mack ✉
Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.
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