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House Approves Trump’s Budget Bill with Trillion-Dollar Tax Cuts and Big Spending Cuts
In a recent move, the US House of Representatives has approved a major budget bill that involves slashing taxes and cutting trillions of dollars in government spending. Despite opposition from Democrats and strict Republicans, the bill successfully made its way through.
The proposed plan includes bigger cuts in spending and roughly $5 trillion in tax breaks. However, this massive tax cut could significantly increase the national debt by about $5.7 trillion over a period of 10 years. At present, the US government owes around $36 trillion, which is a stark reminder that without additional savings or revenue streams, this plan may worsen the country’s financial situation.
Initially, some steadfast Republicans opposed the bill due to rising concerns regarding the national debt. House Speaker Mike Johnson had earlier delayed the vote fearing it would not pass due to the slim Republican majority. Surprisingly, only two Republicans voted against it by Thursday.
The Senate’s version of the bill passed on Saturday, proposing at least $4 billion in spending cuts – a far cry from the $1.5 trillion proposed by the House. The Senate Republicans have emphasized that the $4 billion is merely the minimum figure and are committed to being as aggressive as possible when it comes to cutting government expenses.
In addition to major spending cuts and tax breaks, Trump’s new budget bill also contains proposals for reductions in tips, overtime, and Social Security benefits. While supporters argue that this will boost the economy, critics warn of a worsening debt situation.
The White House believes that increased tariffs will cover up any losses resulting from these cuts; however, experts caution that fewer imports could lead to lower revenue generation. Treasury Secretary Scott Bessent praised the bill, stating that it showcases the administration’s dedication to growth.
As the House passed the bill, Democrats categorically rejected it due to proposed cuts in Medicaid and are prepared to fight on in Congress. The situation comes amid Trump’s tariffs sparking global market turmoil.
Lawmakers are growing increasingly concerned about a slowed economy resulting from the trade war, which may ultimately result in reduced tax revenues.
Source: https://coinpedia.org/news/house-approves-trumps-budget-bill-with-trillion-dollar-tax-cuts-and-big-spending-cuts/
