Economist Stephen Moore joined Chicago’s Morning Answer with guest host Chris Krok for a deep dive into the recently released June jobs report, the impact of the pending tax and spending legislation, and the broader outlook for the U.S. economy under current Republican leadership. The longtime economic advisor and co-author of The Plan to Unleash Prosperity Again praised the current direction of the economy and defended the GOP-backed tax package moving through Congress.
June’s jobs report, which showed 147,000 new jobs and a slight dip in the unemployment rate, was the backdrop for Moore’s optimistic tone. He credited what he called the “Trump economic miracle,” saying the administration’s agenda of tax relief, deregulation, and border enforcement is helping fuel stronger job growth and investor confidence.
A central focus of the interview was the legislative package moving through the House—referred to repeatedly as the “One Big Beautiful Bill.” Moore, who helped write the bill, explained that it doesn’t simply cut taxes; it prevents a massive scheduled increase. If Congress fails to act, he warned, Americans could face a $4 trillion tax hike starting January 1. According to Moore, every Democrat has voted to allow that hike to happen by opposing the current legislation.
Contrary to claims by progressive lawmakers, Moore said the bill actually lowers taxes for nearly all income levels, including working-class Americans. He flatly rejected Rep. Alexandria Ocasio-Cortez’s assertion that it would raise taxes on those earning under $50,000, calling that claim false and misleading. He added that only high earners in states with high local taxes might lose some deductions, but even then, their overall burden would drop.
One of the more unique features of the bill is a new exemption for tipped income, allowing workers to deduct up to $25,000 in tips from taxable income. Moore called the change long overdue and a recognition of how the tip-based economy rewards work ethic and service. He added that opponents of the tip economy are often more interested in centralized wage controls than rewarding individual initiative.
Beyond taxes, Moore highlighted several other key provisions: expansion of school choice through federal support for private education, broader access to Health Savings Accounts, the repeal of the Biden administration’s electric vehicle mandate, and significant reforms to corporate tax policy aimed at encouraging business investment. He argued these measures together would lead to higher productivity, stronger economic growth, and increased competitiveness on the global stage.
Addressing concerns about the bill’s impact on the federal deficit, Moore pointed out that government revenue is already at record highs. The problem, he insisted, is spending. While the bill doesn’t go far enough in cutting expenditures, he framed it as the first of multiple steps, with more structural reforms expected in future legislation. If economic growth accelerates as expected, he said, the increased revenues will naturally help reduce the deficit.
On the topic of Medicaid reform, Moore defended provisions aimed at eliminating waste and fraud. Citing government audit data, he claimed that over $150 billion is lost annually due to fraudulent claims, double billing, and payments to ineligible recipients, including undocumented immigrants. He rejected the narrative that the bill “kicks people off Medicaid,” instead describing it as a move to ensure the program serves only those who truly qualify.
Finally, Moore emphasized that businesses now have more clarity and confidence to invest. With the bill locking in corporate tax rates and eliminating looming uncertainty, he expects a wave of business expansion and reshoring of manufacturing and research to U.S. soil. In his view, states like Texas and Florida, with their business-friendly climates, will continue to thrive, while high-tax states like Illinois may struggle unless they follow suit.
In sum, Moore portrayed the bill as a turning point—one that could protect working Americans from higher taxes, rein in wasteful spending, and unleash a new era of economic growth. Whether the final version passes both chambers remains to be seen, but Moore is confident the momentum is on their side.