Jason Cohen
Former Republican House Speaker Newt Gingrich warned Monday that Republicans must pass tax cuts by July 4 or risk a recession that could cost them control of the House in 2026.
House Republicans on Feb. 25 advanced a budget resolution to extend President Donald Trump’s first-term tax cuts, which are set to expire at the end of 2025. Gingrich, on “Mornings with Maria Bartiromo,” argued that Trump is dealing with former President Joe Biden’s weak economy and needs to push through tax cuts to steer the country out of it.
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“We need to get them done so the 2026 economy is dramatically stronger. We are sliding towards a recession. And that’s just a fact,” Gingrich said. “We’ve inherited, just as [former President Ronald] Reagan inherited [former President Jimmy] Carter’s bad economy, President Trump inherited Biden’s bad economy. To power your way out of that bad economy, you need deregulation and tax cuts.”
“And you need them in May, June or at the very latest, the 4th of July, so they have effect in 2026,” he continued. “That is vital if what we’re trying to do is keep control of the House and not allow the Democrats to cripple the last two years of the Trump presidency with investigations, impeachments, all the things [former House Speaker] Nancy Pelosi did.”
The president pledged during his campaign to tackle the rampant inflation that took hold under Biden, which, on average, remained higher than during Trump’s first term.
“If you pass the tax cuts and the deregulation, you’re going to create an environment where people want to create businesses, they want to be able to go out and hire people and with the revolution that’s coming in artificial intelligence, you’re just going to see a continuing move in the direction of America being most competitive society in the world,” Gingrich added. “But it has to happen quickly in order to keep the House Republican in 2026.”
Former Reagan economist Art Laffer explained Wednesday how Americans have benefited from the Trump tax cuts.
“You know what we know very well is the Tax Cuts and Jobs Act increased tax revenues to the federal government, didn’t lower them,” Laffer said. “It made the poverty levels for the minorities, the disenfranchised, the less educated, the lowest in U.S. history ever.”
“If I can say one thing here, the taxes did go up with the Tax Cuts and Jobs Act. The rich paid more in taxes at lower tax rates. Revenues went up, not down,” he added. “And, you know, this was a win, win, win, win. Who on earth would ever want to raise taxes and collect tax rates and collect less revenues? You have to be dumb, blind, and stupid to do something like that.”
Treasury Secretary Scott Bessent committed to collaborating with Congress to extend tax cuts, calling it “the single most important economic issue of the day.”
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