Hakeem Jefferies by Urging the CBO to Score the 10% Consumer Tax Cut Presents a Challenge to Trump’s Tax Cut.

Tax cuts can create Jobs, and grow the U.S. economy and give billionaires, millionaires, and corporations reasonable tax cuts without hurting our economy. We know, Consumers Spending money in our economy is, what makes the U.S. economy the largest and number one economy, in the world.

 

And we know based on statistics, Consumer Spending or consumption spending accounts for 68-70% of U.S. gross domestic product (GDP) according to the Bureau of Economic Analysis (BEA). Putting that more simply, if you are 70% of anything, like Consumer Spending is, when it comes to the American economy, that means you dominate that particular function. So, Consumer Spending is the most dominating factor of the U.S. economy.

Therefore, common sense, and deductive reasoning says, if you give more money to the 70%, who is powering, dominating, and growing the U.S. economy, you will get continuous Job creation and growth, as a result of Consumers Spending more money. And the way you provide more money to consumers is by way of a ten percent consumer tax cut.

Therefore, at this point, when you look at that 70% figure, and you take it apart or dissect it, and this is where facts, mathematics, and objectivity comes into play, regarding tax cuts; you want to know within that “70% group of spending consumers,” the core group of spenders, or who are “the majority of spenders within that group of consumers.” Why is that important? “It is critical to the success of a 70% Consumer Driven Tax Cut economy,” that we know who that core group is, because that is the group, if given an increase in money will create more Jobs and grow our economy, as that group of consumers primarily drives spending.

But let us go back to the title of the article and explain who Hakeem Jefferies is, and what is the CBO. He is an attorney from New York city, who serves as the House of Representatives Democratic party minority leader. The Congressional Budget Office (CBO) was established by the Congressional Budget Act of 1974 to provide objective, non-partisan information to support the Congressional budget process and help Congress make effective budget and economic policy. To score, means to do an analysis of the tax cut proposal.

According to the latest report by the Congressional Budget Office, extending the Trump tax cut for the next 10 years, as Republicans are proposing would add $4.6 trillion to the deficit, imperiling Social Security, as we know it. The report, written at the urging of Senator Whitehouse (D-RI), and Senator Wayden (D-OR), finds the extension would cost $1.1 trillion more than previously estimated. The Trump tax cut overwhelmingly benefits the wealthiest Americans and large corporations, because (and this is a no brainer) the Trump tax cut gives the most money to those two groups and not to consumers.

According to the Institute on Taxation and Economic Policy, extending the Trump tax cut would create a $112.6 billion benefit for the top 5% of income earners in the first year. While Trump has added some sweeteners, to make his tax cut look more attracted to the general public and voters, such as no taxes on tips, no taxes on overtime, no taxes on interest for American made cars and some tax relief for seniors, the Trump tax cut eliminates healthcare subsidies, that help working-class families and food assistance programs that serve struggling American families.

With the wealthiest 10% owning over 90% of all stocks, what’s the credible argument for giving them more through a tax cut sponsored by President Trump and Republicans, when the nation needs growth and Job Creation. The most comprehensive unemployment rate per the Bureau of Labor Statistics economists is 7.8% for April (the U-6 category rate from the Table of Alternative Measures of Labor Underutilization) and not Trump’s 4.2% rate (the U-3 category rate). So, to give a tax cut to the wealthiest Americans, and corporations, the Trump administration feels it must lie to American voters about the true state of our economy.

When Bill Clinton used this mantra, in his defeat of George Bush, “It’s the Economy Stupid,” the national unemployment rate at that time was 7.8%; same as the April’s, 2025, most comprehensive unemployment rate, per the Bureau of Labor Statistics (BLS) economists. The nation at that time was considered to be in a mild Recession.

The logic of giving consumers a 10% tax cut to spur economic growth, and create Jobs is mathematically and empirically sound. In our recovery from Covid 19, we observed, it worked in real time. The $2,000 stimulus check; it was not recorded as part of the gross income of its recipients. There was no income taxes paid on it (it was given to us tax free (a tax cut), so we could go out and spend it, creating demand, which led to creating Jobs in our economy).

During the nation’s recovery from Covid 19, stimulus payments, tax credits, and tax cuts under the Cares Act, the single largest relief bill in the history of the nation at the time of its signing ($2.3 trillion), into law on March 27, 2020, we find 75%-80% of the money legislated was spent on enhancing Consumer Spending, either directly, or indirectly. The unemployment rate dropped from 14.7% in May 2020 to 6.7% by November, a period when consumer focused stimulus was active. This proves there is a correlation between Consumer Spending and Job creation.

There were such programs, as the $484 billion Payroll Protection Program, and the $367 billion outlays of various loans, and grant programs to businesses, individuals and to major corporations. The Act provided for $454 billion to support the Federal Reserve lending. The deployment of these funds primarily kept consumers employed and spending, to sustain Job creation. However, one of the major tax cut programs disguised as a tax credit program, stood out, and helped us understand and drives home the point, it’s Consumer Spending that is at the heart of our nation’s growth and Job creation.

The tax cut to Families with Children, stood out as being very effective. It caused a gust of growth, and Job creation. Using Democrats’ figures, roughly $15 billion monthly in TAX CUTS started going out with 170 days left in 2021, as the tax cut to Families with Children programs got underway in July and ended on December 31^st. It resulted in $529 million a day being given to, and spent by consumers, every day, on average. What the federal government did was, front loaded money to Families with Children, based on the number of children, Internal Revenue Service records showed they had, and sent them a check.

1.091 million Jobs were created, in July, 483,000, in August, (in spite of the onset of the Delta variant), and 379,000 Jobs, in September during the peak of the variant. But the tax cut to Families with Children does not give the treasury the flexibility it needs to fix the economy, “this time.” Its payments must be issued to parents monthly based on a rigid, and pre-calculated amount based on the number of children. So, the ability and flexibility to increase, or decrease Consumer Spending, through pulling demand or payments forward to create a soft-landing for the economy is not possible, with the Families with Children tax cut.

Baby Boomers, as a homogeneous group, who are retiring at a rate of 10,000 a day, will statistically be the best target of the coming direct consumer tax cut. Distribution of the Baby Boomer Consumer tax cut, by appropriately pulling demand forward when needed, will create a soft-landing, and give the Secretary of the Treasury, Scott Bessent, the flexibility spoken of above.

The age group, beginning at 55 plus years, are responsible for about 40% of the spending done in our economy, and Baby Boomers are the core group of the 70% of spenders mentioned above. Thus, Baby Boomers are the largest population among that age group of consumers. Baby Boomers, who will receive the $25,000 Consumer Tax Cut at the time of retirement, once they start receiving Social Security retirement payments, will spend the money, creating economic growth, and Job creation, as consumption DATA shows low-and middle-income Americans are more likely than wealthy earners to spend benefits, from the government immediately, and stimulate economic growth, and Job creation.