The Senate passed a nearly $1.5 trillion Republican tax reform bill Saturday giving President Donald Trump the first legislative win of his administration.
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“It's the largest tax decrease in the history of our country by far,” Trump said during a fundraiser in New York on Saturday. “Not even close.”
The Senate bill passed, which passed on a 51-to-49 vote, aims to lower individual income tax rates for the middle class, reduce the corporate income tax from its current rate of 35% and provide relief to small business owners.
Ben Stein, the economist and actor famous for the TV show ‘Win Ben Stein’s Money,’ and for his role in ‘Ferris Bueller’s Day Off,’ told FOX Business’ Trish Regan the tax reform bill will push the U.S. economy towards inflation.
“What is the point of this bill? It makes everything much more complicated and it really doesn’t add anything to an economy that is already booming like crazy. The next step in this economy is inflation and this bill is pushing us towards inflation,” Stein said.
The GOP tax reform bill would cut the corporate tax rate from 35% to 20% and double the standard deduction for individuals and families.
Stein said lowering the corporate tax rate won’t stimulate demand in the U.S. labor force.
“Every economist in the world would say, when you have a situation of excess demand for labor, you don’t stimulate the demand for labor by lowering taxes,” he said.