Trump repeats claim of 68% tax hike if ‘big beautiful’ bill is not passed

Investing.com-- U.S. President Donald Trump on Monday repeated his claim of a 68% increase in taxes if a sweeping tax and spending cut bill backed by him does not go through.

“The failure to pass means a whopping 68% Tax increase, the largest in history!!!” Trump said in a social media post, claiming that the bill would give the “largest tax cuts and border security ever.” 

Trump has repeatedly cited the 68% tax hike figure in the past, but has provided little insight into the accuracy or the reasoning behind the figure. 

Non-partisan website FactCheck.org said in a June analysis that the president may be referring to the percentage of Americans who will experience a tax hike if some of his 2017 spending cuts, which his bill seeks to extend, expire this year. 

As for an actual tax increase, the Ubran-Brookings Tax Policy Center, a non-partisan think tank, estimates that Americans’ taxes will rise by about 7.5% if the 2017 tax cuts are not extended.

Trump’s comment comes as policymakers debate over his “big beautiful bill” act in the Senate, with criticism directed towards the potential for the bill to even further widen the government’s fiscal deficit.

Lawmakers embarked on a marathon session on Monday to pass the bill, but rifts still persisted within the Republican party over the bill’s effects on U.S. fiscal health.

While the Republicans hold a majority in the Senate, the bill has faced resistance from more fiscally conservative members of the party. 

A non-partisan analysis showed this week that the bill, in its current form, will increase U.S. debt by $3.3 trillion. 

Progress of the bill through Congress had rattled U.S. debt markets, especially as U.S. Treasuries grew less attractive to domestic and foreign investors. Concerns over the fiscal impact of the bill also saw Moody’s cut the U.S. credit rating in May. 

The bill, which extends Trump’s 2017 tax cuts while also increasing spending on defense and border control, comes at a time when U.S. debt levels are at a record-high $36 trillion. 

 Former Trump confidant Elon Musk also criticized the bill for potentially increasing national debt. Musk on Monday vowed to unseat every Republican who backed the bill.