Is the “Great Great” law the largest tax reduction in the history of the United States? | Donald Trump News

US Vice President JD Vance struck the road on August 21 to promote President Donald Trump’s legislative achievement, A single beautiful invoice work Tax and spending bill.

The law has permanently extended tax cuts from the Trump Law of 2017, which would have ended at the end of 2025 and did not re -formate Congress. The law also guarantees some new tax cuts, including advice, additional work, and Americans 65 and above.

Speaking in the city of Peachtree near Atlanta, Vans said: “We had the largest tax cuts for the families that this country has ever witnessed.”

The tax cuts were large, but it was not the largest in the history of the United States, which was the phrase Trump often used to describe the 2017 tax reduction law. The 2025 tax cuts are ranked either a third larger since 1980 or tied in seventh place, depending on the standard.

At the same time, many Americans can see relatively modest changes to the taxes they owe starting in 2026, because the law of 2025 is often extended the current tax cuts.

The White House did not provide a response before publishing.

Comparison of historical tax reduction laws

We studied low tax revenues from the main laws that have been approved since 1980. (On the balance, most tax laws before 1980 either raised taxes or reduced them modestly.)

The tax bill amounts tend to rise over time due to inflation, so we looked at tax cuts as a percentage of GDP (GDP), which surpasses the differences over time. And because some early laws have tax reduction data only available during the five or six years of the law of law, we compared laws by considering the cumulative tax savings during the first five years of the law.

We have found that the law bearing the largest tax savings was in 1981 issued by the Democratic Conference and signed by President Ronald Reagan, who won promising positions in major tax cuts. This law reduced taxes by 3.5 percent of the GPA for a period of five years.

The 2012 draft law was ranked by Republican Congress and was ranked second. This law, which reduced taxes by 1.7 percent of GDP, extended tax cuts in 2003 during the era of President George W. Bush.

Based on the current expectations, the Trump Act 2025 ranks third, with 1.4 percent of GDP in size Trump discounts 2017.

The Trump Law of 2017 ranked fourth by 1 percent, and the signing of the 2010 Obama Law on the fact that tax cuts in Bush 2001. The tax cuts in Bush 2001 and 2003 ranked sixth and seventh, by 0.7 percent and 0.5 percent, respectively.

If you look at the new tax cuts only and not the 2017 tax cuts, the Trump 2025 law will link to the seventh by 0.5 percent of GDP.

Joseph Rosenberg, an older colleague at the Tax Policy Center at the attendance institute at the Al -Hadary Institute, said that it is a project to measure the volume of discounts in the tax law 2025 in both cases.

What do the Americans see in their taxes starting in 2026?

There can be a separation between the historical scale Trump Bill 2025 The influence that the Americans will notice when offering 2026 taxes.

Since Americans are already paying the low prices that started in 2017 and that the 2025 Law has spanned, they will not necessarily notice a significant reduction in the tax due.

“For most families, they will see tax credit for children, which increases a maximum of $ 200 per child, from $ 2000 to $ 2200,” said Margot Kranel-Houlik, a head researcher at the Tax Policy Center in urban areas. “Some will pay a little less because of the advice, the provisions of additional work and a slightly higher standard discount.”

The law retains a more generous standard deduction that has been appointed to end its validity and an increase to 15,750 dollars a little for individual candidates and $ 31,500 for the participating candidates in 2025, to be indexed for inflation annually.

At the same time, Crandall-Hollick said that some families, especially families who have less income, will pay higher taxes due to the end of the health insurance tax credits, which have not been extended under the beautiful beautiful bill.