The Republican-led U.S. House of Representatives has passed a significant tax relief and spending cuts bill championed by President Donald Trump. Critics have raised concerns that it could severely impact healthcare while significantly increasing the national debt.
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This legislation, which now heads to the Senate, reflects Trump’s vision for a new “Golden Age.” It proposes to scale back social safety net programs to facilitate a ten-year extension of the tax cuts initiated in 2017.
In a post on Truth Social, Trump announced, “THE ONE, BIG BEAUTIFUL BILL has PASSED the House of Representatives.” He touted the features of the bill, highlighting “MASSIVE tax CUTS, No Tax on Tips, No Tax on Overtime, Tax Deductions when you purchase an American Made Vehicle, funding for strong Border Patrol Agents, ‘TRUMP Savings Accounts’ for newborns, and much more!”
House Speaker Mike Johnson remarked, “Legislation of this magnitude is truly nation shaping and life changing.” He emphasized the long-term historical significance of this vote, stating, “It’s the kind of transformational change that future generations will study one day.”
The bill secured passage with a narrow margin of 215 to 214, primarily along party lines, after Republican leadership managed to quell dissent from the party’s right flank that threatened its approval.
This measure is poised to become the cornerstone of Trump’s domestic policy agenda, potentially defining his second term if he secures re-election. However, it faces staunch opposition from Democrats, as well as skepticism from fiscal conservatives. Many fear that it could set the nation on a path toward bankruptcy, with independent analysts predicting a $4 trillion uptick in the deficit over the next decade.
According to the nonpartisan Congressional Budget Office (CBO), the legislation would disproportionately benefit the wealthiest 10% while exacerbating poverty for the bottom 10%. This could extend health care and food aid cuts that would leave around 8.6 million low-income Americans without coverage. House Minority Leader Hakeem Jeffries criticized the bill as “the largest cut to health care in American history,” aimed at facilitating “the largest tax breaks for billionaires in American history.”
While the White House Council of Economic Advisors has made ambitious forecasts predicting growth of up to 5.2%, skepticism looms over these projections. Trump’s press secretary, Karoline Leavitt, defended the bill, asserting that it “does not add to the deficit” and would instead save $1.6 trillion through spending cuts.
Despite such assurances, investors reacted cautiously, as evidenced by a surge in the yield on the 10-year U.S. Treasury note, which reached its highest level since February. This surge reflects concerns over the potential impact of the bill on the existing $36 trillion national debt.
The bill is expected to be subject to extensive revisions in the Senate, which aims to present a finalized package to Trump by July 4. Speaker Johnson’s leadership included negotiating work requirements for Medicaid recipients, responding to objections from fiscal conservatives while accommodating moderates seeking increased state and local tax deductions.
While Trump’s polling numbers have declined since his return to office, his successful navigation of this complex legislative landscape underscores his enduring influence over the party. Trump’s rare visit to Capitol Hill to advocate for the bill was instrumental in rallying support from a divided Republican body.
In the coming weeks, as the Senate deliberates the bill, all eyes will be on how these significant changes will reshape the economic landscape and impact millions of Americans.
Edited By Ali Musa
Axadle Times International – Monitoring.
