Statement on the passage of the One Big Beautiful Bill Act
“Club for Growth congratulates the Republican House Majority on the passage of the One Big Beautiful Bill Act. This is a critical step toward extending and expanding the 2017 Trump Tax Cuts. Every House Democrat is now on the record taking the extreme and radical position of voting for the largest tax increase in American history. Club will continue to work with Senators to improve and pass this historic bill and foster an economic environment where prosperity, opportunity, and economic growth flourish.” David McIntosh, President, Club for Growth
BACKGROUND:
The One Big Beautiful Bill Act extends and expands the Trump 2017 Tax Cuts, stopping a disastrous $4.5 trillion tax increase that would devastate American families and businesses. The tax title includes critical pro-growth measures, including full expensing for capital investments in structures for manufacturing, agriculture, and resource extraction – a free market, pro-growth policy that the Club has consistently championed as necessary for renewing industrial investment in the United States. The bill also reinstates full expensing for short-term investments and R&D, expands interest deductibility by returning to the EBITDA standard, and raises the Section 179 expensing limit.
The bill ensures no increases in marginal tax rates and avoids harmful levies on stock buybacks and carried interest—proposals that Club for Growth has consistently opposed. We are pleased that House Republicans rejected these anti-growth measures. It saves millions of jobs, and avoids an average $1,700 tax increase while boosting average income by $3,300. While Club for Growth supports abolishing the estate tax, this bill enhances the exemption level to $15 million.
In addition, the bill includes important reforms to reduce wasteful spending and promote upward mobility through common-sense changes to federal welfare programs. First, it establishes community engagement requirements for able-bodies adults without dependents (ABAWDs) for those between the ages of 19-64 enrolled in Medicaid. This reform is supported by the vast majority of the American people, who recognize that it is immoral for able-bodied individuals to receive taxpayer support without participating in productive activities that will enable them to escape government dependence. It also repeals much of the Inflation Reduction Act, like tax credits for electric vehicles and residential energy products.
The bill would strengthen the integrity of the Supplemental Nutrition Assistance Program (SNAP) by ending loopholes to the program’s work requirements – specifically by tightening waiver thresholds, expanding work requirements to all working-age ABAWDs, and creating incentives for state to move individuals from welfare to work through state share requirements for SNAP allotments.