Why the GOP’s Big Beautiful Bill Falls Short: My Take on Spending Cuts and Debt
With $1.5 trillion in cuts against a $37 trillion debt, this bill’s loopholes and half-measures won’t stop the fiscal crisis.
I know we might already be tired of this “Big Beautiful Bill” talk, as the GOP leaders try to make the sausage, all they seem to be doing is pulling the wool over Americans’ eyes. You know this, as the Rules Committee is set to meet at 1 AM overnight to determine the rules for debate and consideration of the multiple amendments for the House Floor vote, as the U.S. House works to get this bill through before Memorial Day. The bill involves spending on defense, border security, the SNAP program, the 2017 tax cut being made permanent, Medicaid, and energy subsidies.
So, what is going on? Trump and the mainstream GOP House members are at odds with conservatives who want to rein in the spending, noting that the spending bill adds to the federal debt, noting that they are not taking our fiscal crisis seriously.
Key Details of the Bill
Tax Cuts Extension: This bill extends the 2017 tax cuts through 2034, including campaign promises like no taxes on tips or overtime.
Revenue Impact: The Tax Foundation estimates a $4.1 trillion revenue reduction over 10 years ($400 billion annually).
Spending Cuts: The plan is to cut $1.5 trillion in spending over 10 years, though some Republicans push for $2 trillion or more.
Specific Cuts: Reduces SNAP (food stamps) from $120 billion annually to $90 billion, still 50% higher than pre-COVID levels ($60 billion in 2019).
Fiscal Context:
The national debt is $37 trillion, and interest payments are nearing $1.9-$2 trillion annually (7% of GDP) due to rising Treasury yields (30-year at ~5%).
Annual deficits could hit $2.5 trillion, with the bill doing little to address this.
DOGE (Department of Government Efficiency) efforts are projected to save only ~$300 billion annually, far short of needed reforms.
Criticisms:
The bill fails to treat the fiscal situation as a crisis, adding to the debt without significant structural reform.
Proposed tax exemptions (tips, overtime) risk creating loopholes and gamesmanship (e.g., independent contractors exploiting "optional tips").
New spending programs are included, despite calls to eliminate them.
Proposed Principles:
Cut all program budgets to 2019 (pre-COVID) levels.
Eliminate all new spending programs.
Notable Voices: U.S. House Reps Chip Roy and Thomas Massie and Senators Rand Paul and Ron Johnson criticize the bill’s inadequate spending cuts.
From my point of view, the bill’s failure to pair tax cuts with genuine spending reductions betrays fiscal responsibility. We need representatives who prioritize balanced budgets and minimal government intervention, and this bill exacerbates the $37 trillion national debt, with interest payments consuming 7% of GDP—an unsustainable trajectory signaling a fiscal emergency. The proposed $1.5 trillion in cuts over 10 years is woefully inadequate against $2.5 trillion annual deficits, and even the $2 trillion some Republicans advocate falls short.
The SNAP cut is a step toward restraint, but it doesn’t go far enough; it remains 50% above pre-COVID levels. The tips and overtime tax exemptions, while populist, invite easily exploited loopholes that undermine tax code simplicity and fairness.
We must insist on cutting budgets at least to 2019 levels and eliminating new spending. This would enforce discipline and prioritize essential functions, though implementing them requires political will absent in Congress. DOGE’s limited impact (~$300 billion/year) underscores that bureaucratic efficiency alone can’t fix a structurally broken system; Congress must act decisively.
