One Big Beautiful Bill or BUDGET BOMB?!

Treasury Secretary Scott Bessent has waded into a fierce public debate with former Treasury Secretary Larry Summers, defending President Trump’s sweeping “One Big Beautiful Bill” while demanding an apology for Summers calling it “shameful.”

At a Glance

• Bessent slammed Summers for politicizing the tax-and-spending package
• Summers warned it would add trillions to the national debt
• Bessent advised Congress to drop a punitive tariff tax
• Debate centers on balancing economic growth with fiscal responsibility
• Markets are reacting to mixed signals from both sides

Bessent Strikes Back at Summers

In an interview on ABC News, Summers described the “One Big Beautiful Bill,” signed July 4, as “shameful,” warning it would worsen the U.S. economic outlook by sharply increasing debt and deficit levels. He cited projections from the Congressional Budget Office showing it could add $2.8 trillion to the federal deficit by 2034, according to The Daily Beast.

Treasury Secretary Bessent fired back, calling the critique unfair and claiming the markets have endorsed the legislation. He also urged Congress to remove a controversial “retaliatory tax” on foreign investors, arguing it could trigger financial retaliation and investor flight, as reported by Reuters.

Watch a report: Markets indicate support for Trump Tax and Spending Bill – Bessent

Debt Concerns Clash With Growth Goals

The legislation extends Trump-era tax cuts, boosts defense and border funding, and dismantles key green energy incentives. While the American Bankers Association and some conservative think tanks support the bill for its pro-growth provisions, economists including Larry Summers, Paul Krugman, and Joseph Stiglitz have condemned it for increasing the national debt and exacerbating income inequality.

A Business Insider analysis projects a total ten-year deficit impact of $4.6 trillion. Meanwhile, fiscal hawks within the GOP are warning that the bill’s tariff provisions could spiral into a trade war, stifling investment and pushing up costs for U.S. consumers.

What Comes Next

Republicans are racing to finalize the bill before expiring tax provisions sunset this fall. Bessent, signaling confidence in the markets, continues to advocate for aggressive passage. Summers, however, is pressing for a pause and a more responsible fiscal path.

The high-profile standoff reflects growing divisions within the GOP and Wall Street over whether the Trump administration’s economic approach represents long-term growth—or long-term risk.