Trump: The great, big, beautiful bill will grow the economy like never before, cutting expenses by $1.6 trillion. It puts our country on the right track. Make America great again! - Truth Social

Trump: The great, big, beautiful bill will grow the economy like never before, cutting expenses by $1.6 trillion. It puts our country on the right track. Make America great again! - Truth Social

Futures for Canada's main stock index were subdued on Thursday, as investors remained cautious ahead of an important vote in the U.S. on President Donald Trump's "big beautiful" tax bill. June futures on the S&P/TSX index (.SXFcv1) were up 0.05% at 6:05 a.m. ET (1005 GMT).

Trump's sweeping tax and spending bill cleared a crucial hurdle on Thursday and is expected to be voted on in the House of Representatives later in the morning. Investors worry it could add about $3.8 trillion over the next decade to the $36.2 trillion U.S. debt burden [1].

The bill, officially titled the "One Big Beautiful Bill," underscores a striking evolution in the Republican Party's economic agenda. It moves away from tax policy that prioritizes economic growth and toward populist giveaways inspired by Trump's campaign promises [2]. The bill includes provisions such as exempting tips and overtime pay from income taxes and a new deduction for seniors. However, the size of these policies comes at a cost.

Critics, including many conservative experts who supported the first Trump tax legislation, argue that the bill will sacrifice long-term economic growth to deliver on these short-term political promises. Unlike the 2017 law, which centered on a large corporate tax cut, this year's measure would primarily shower smaller amounts of cash on tens of millions of households through reduced taxes and bigger deductions [2].

The Trump administration has blasted nonpartisan estimates that the tax law will add trillions to the debt, arguing that such projections don’t account for the economic growth — and therefore additional revenue — the legislation will generate. However, the current proposal devotes far less money to boosting growth than the 2017 law, limiting the amount of new economic output right-leaning analysts believe it will achieve [2].

Expanding corporate-facing provisions that might generate more growth, as some Republican senators have proposed, would risk driving up the bill’s cost and may not prove feasible. Defenders of the legislation say the Trump administration delivers both on populist promises and pro-growth changes [2].

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3RU0O1:0-tsx-futures-flat-ahead-of-vote-on-trump-s-tax-bill/
[2] https://www.washingtonpost.com/business/2025/06/09/trump-tax-bill-gop/