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On June 5, the nonpartisan Congressional Budget Office sent shockwaves through Washington by announcing that U.S. President Donald Trump’s proposed budget reconciliation bill—known as the One Big Beautiful Bill Act—would increase the U.S. national debt by $2.4 trillion over the next decade. Many economists fear that these levels of debt will worsen inflation and could trigger a financial crisis.

The bill, which has been passed by the House of Representatives and now lies with the Senate, poses a dilemma for Republicans. The legislation’s proposed benefit cuts to programs such as Medicaid, the Affordable Care Act, and the Supplemental Nutrition Assistance Program are unpopular with constituents, but they help offset the $4 trillion cost of extending Trump’s first-term tax cuts.

On June 5, the nonpartisan Congressional Budget Office sent shockwaves through Washington by announcing that U.S. President Donald Trump’s proposed budget reconciliation bill—known as the One Big Beautiful Bill Act—would increase the U.S. national debt by $2.4 trillion over the next decade. Many economists fear that these levels of debt will worsen inflation and could trigger a financial crisis.

The bill, which has been passed by the House of Representatives and now lies with the Senate, poses a dilemma for Republicans. The legislation’s proposed benefit cuts to programs such as Medicaid, the Affordable Care Act, and the Supplemental Nutrition Assistance Program are unpopular with constituents, but they help offset the $4 trillion cost of extending Trump’s first-term tax cuts.

Most Republican lawmakers will likely decide that they would rather deal with the fallout of slashing constituent benefits than that of raising taxes. But it wasn’t always this way.

In 1990, President George H.W. Bush worked with congressional Democrats on a historic deficit-reduction package that cut spending and increased taxes, contradicting his campaign promise. Although deficit reduction was essential for a healthier fiscal balance, the political fury over Bush’s decision was so severe that it caused most Republicans to swear off tax hikes for good.

After the extraordinarily difficult economic situation of the 1970s, President Ronald Reagan argued that the economy needed new solutions. To him and fellow conservatives, the answer was cutting taxes to free up private-sector investment. Reagan had seen firsthand how capping California property taxes in 1978 had been a political boon for Republicans and hoped this approach would translate on the national stage.

During the 1980s, Republicans made tax cuts as much of a priority as fighting communism. Reagan’s signature domestic legislation was a massive

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