On July 4, President Trump signed the One Big Beautiful Bill (OBBB) that, among other things, includes the largest tax cuts for the American working class and slashed $1.5 trillion in wasteful spending.
Shortly thereafter, the propaganda media stepped up its campaign, questioning the fiscal implications of the Act. They warned that the law would cause millions of people, especially illegal immigrants, to lose Medicare and Social Security and would add trillions of dollars to the national debt.
However, White House senior counselor for trade and manufacturing Peter Navarro says that their analysis relied on flawed projections from the left-leaning Congressional Budget Office (CBO), which he claims uses outdated prediction models that have historically produced inaccurate forecasts.
“For years, the CBO has been trapped in a stale left-wing Keynesian mindset and stubbornly committed to static scoring models that fail to grasp how real-world economies respond to bold, pro-growth policies,” he wrote in an op-ed piece on Fox News.
He came to the same conclusion when he appeared on NewsMax to discuss how tariff gains would offset the predicted increase in national debt.
He pointed to the CBO’s flawed projections following Trump’s signing of the 2017 Tax Cuts and Jobs Act, which predicted a sluggish Obama-era growth rate of 1.8–2.0%, only for the economy to grow by 2.9%.
“Instead of learning from its spectacular misfire on the Trump 2017 tax bill, the CBO is now recycling the same flawed assumptions to smear the fiscal integrity of President Trump’s One Big, Beautiful Bill – and the Fake News is eating it up.”
Navarro warned that the CBO had failed to account for “dynamic growth effects” resulting from permanent tax cuts, deregulation, and investment incentives in the bill. He also noted that it ignored the projected revenue from Trump tariffs, which is estimated at over $2.8 trillion within the next decade. Instead, it predicted $3.9 trillion in national debt over the same period.
“Under heavy fire, the CBO scrambled to release a second ‘dynamic’ estimate – but once again, they blew it,” Navarro continued. “This time, they cooked the books by frontloading the bill’s costs, artificially inflating the early debt load.”
He also noted that the CBO projected an increase in interest rates, which would wipe out any growth realized from Trump’s OBBB.
“It was a masterclass in bureaucratic sabotage disguised as fiscal analysis,” Navarro added.
“This CBO trash is what the Fake News is taking out now every day and night before the American people in its Trump Derangement Syndrome efforts to discredit what is beyond question a truly Big, Beautiful and FISCALLY RESPONSIBLE bill.”
He explained that spending on incentives like tax cuts and business investment boosts will trigger a surge in economic growth, which would offset the initial cost of the legislation.
“When you frontload spending – particularly on growth-oriented tax relief and business investment incentives – you should also frontload the growth surge those policies trigger.”
Recently, President Trump slammed Fed Chair Jerome Powell for failing to lower interest rates by three points as he should have due to what the leftist bureaucracy has called uncertainty due to Trump’s tariffs.
“Our Fed Rate is AT LEAST 3 Points too high,” Trump posted on Truth Social. “‘Too Late’ is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA. ‘The hottest Country in the World!’ LOWER THE RATE!!!”
However, experts note that, despite the feds’ inaction, the economy has stabilized and is improving dramatically, suggesting that lowering interest rates would significantly boost growth even further
“The FOMC is comfortable remaining in wait-and-see mode,” said the chief economist at LPL Financial, Jeffrey Roach. “Despite headwinds, the economy continues to trudge along, giving policymakers time to assess the projected impact from tariffs.”
Despite this, the liberal bureaucracy remains determined to undermine Trump’s economic agenda by refusing to adapt to shifting economic realities.
