logo
US House Republicans head towards final vote on Trump's sweeping tax-cut bill

US House Republicans head towards final vote on Trump's sweeping tax-cut bill

Khaleej Times16 hours ago
Republicans in the US House of Representatives advanced President Donald Trump's massive tax-cut and spending bill towards a final yes-or-no vote early on Thursday morning, appearing to overcome internal party divisions over its cost.
During a marathon overnight session, lawmakers cleared a final procedural hurdle needed to begin debate on the bill in a 219-213 vote around 3:30 a.m. ET (0730 GMT). It was not clear when they would hold a final vote.
As dawn broke in Washington, the top House Democrat, Hakeem Jeffries, was well into what was turning into an hours-long speech, calling out Republican lawmakers by name as he blasted the package as a giveaway to the wealthiest Americans.
"This one big, ugly bill — this reckless Republican budget — this disgusting abomination is not about improving the quality of life of the American people," he said, a scathing reference to Trump's name for his signature legislation: One Big Beautiful Bill.
"The focus of this bill, the justification for all of the cuts that will hurt everyday Americans is to provide massive tax breaks for billionaires."
His remarks had echoes of Democratic Senator Cory Booker's record-setting April speech that accused Trump of "recklessly" challenging the nation's democratic institutions.
Democrats are united in opposition to the bill, but on their own lack the votes to stop the bill in the chamber, which is controlled 220-212 by Trump's Republicans.
Republicans can afford no more than three defections to get a final bill passed.
The past two weeks have shown deep Republican divides on the bill, which would add $3.4 trillion to the nation's $36.2 trillion in debt and make major cuts to social programmes, including Medicaid.
Republican lawmakers have long railed against the growth of the debt, which has continued over the past two decades regardless of which party was in control in Washington.
A handful of Republican holdouts have objected to the bill. One, Senator Thom Tillis, opted not to seek re-election after voting against it. Nonetheless, Trump has succeeded in getting the votes to advance the legislation at each step of the way.
Votes in the House were held open for hours on Wednesday during the day and overnight as House Speaker Mike Johnson and the White House talked with reluctant members.
Johnson expressed optimism on Wednesday night, saying lawmakers had a "long, productive day" discussing the issues. He praised Trump for making phone calls to the holdouts through the early hours of Thursday morning.
"There couldn't be a more engaged and involved president," Johnson told reporters.
The Senate passed the legislation by the narrowest possible margin on Tuesday after intense debate on the bill's hefty price tag and $900 million in cuts to the Medicaid healthcare programme for low-income Americans.
Any changes made by the House would require another Senate vote, which would make it all but impossible to meet Trump's self-imposed deadline of getting the legislation approved by the July 4 holiday.
The bill would raise the nation's debt ceiling by $5 trillion, a necessary step to avoid a devastating default later this summer.
The non-partisan Congressional Budget Office estimates that almost 12 million people could lose health insurance as a result of the bill.
The legislation contains most of Trump's top domestic priorities.
It would extend Trump's 2017 tax cuts, cut health and food safety net programmes, fund Trump's immigration crackdown, and zero out many green-energy incentives. It also includes a $5 trillion increase in the nation's debt ceiling, which lawmakers must address in the coming months or risk a devastating default.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

A volatile Middle East cannot afford more games of tactical ambiguity
A volatile Middle East cannot afford more games of tactical ambiguity

The National

time35 minutes ago

  • The National

A volatile Middle East cannot afford more games of tactical ambiguity

It has been less than a fortnight since what US President Donald Trump dubbed the ' 12-day war ' between Israel and Iran came to an end. Despite the acute relief felt by most people across the Middle East, especially civilians in Iran and Israel, the atmosphere is tense and the situation remains volatile, with the war in Gaza ongoing, the Israeli government threatening more strikes and Iran's nuclear programme raising concerns. Such unpredictability is not helped by this week's decision by Iranian President Masoud Pezeshkian to approve a law suspending the country's co-operation with the International Atomic Energy Agency. The UN nuclear watchdog has effectively been left in the dark and is awaiting further official information from Tehran, an IAEA spokesman told The National. It should not be surprising that Iran – already formally in breach of its non-proliferation obligations – sees little value in acquiescing to demands for greater transparency over its nuclear programme. Israel chose to unilaterally strike targets across the country, killing hundreds of civilians in the process. The US later joined this assault, dropping several of its largest non-nuclear bombs on Iran's nuclear facilities. Nevertheless, for Tehran to cut ties with the IAEA would be a strategic mistake. The agency remains the only trust-building mechanism for Iran to assuage international concerns about its nuclear programme, the condition of which is now shrouded in uncertainty. Threatening to walk away is not leverage, nor would it restore deterrence against further attack. In fact, Iran's going dark would achieve the opposite effect; disengaging from the IAEA would generate more distrust and increase the speculation surrounding the country's nuclear intentions. This does not negate the need to address Israel's nuclear capabilities which are arguably more opaque than Iran's. The need for a region free of nuclear weapons has never been greater. Iran's unprecedented strike on Qatar's Al Udeid air base upped the stakes for Tehran's near neighbours The current situation leaves the rest of the Middle East in a difficult position. Iran's unprecedented strike on Qatar's Al Udeid air base upped the stakes for Tehran's near neighbours by demonstrating that Tehran's relationship with its GCC partners would come second to its perceived need for retaliation. Indeed, although some reports have suggested that Iran's missile salvo was choreographed so as to reduce the risk of casualties, Qatar's Foreign Ministry spokesman, Majed Al Ansari, rightly noted on Monday that Tehran's attack was not 'harmless', having forced the country to close its airspace for several hours, activate its air-defence systems and experience 'reputational damage when it comes to safety and security". All sides should be aware that the stakes are too high for further games of tactical ambiguity. More strategic nous by Israel and Iran is required. For Iran, there is a path to security and a truly civilian nuclear programme, but it will require Tehran to co-operate with the international community through bodies such as the IAEA, not abandon them. Meanwhile, Israel continues to fuel regional anger and frustration through the appalling violence being meted out by its forces to Palestinian civilians in Gaza and the West Bank even as Iranian missiles struck Tel Aviv and other cities. Agreeing to a ceasefire would be an important step to reducing the volatility gripping much of the Middle East, and starting to work on a long term peace plan for the region.

US remittances: What does the new tax mean for migrants and foreign workers?
US remittances: What does the new tax mean for migrants and foreign workers?

The National

time35 minutes ago

  • The National

US remittances: What does the new tax mean for migrants and foreign workers?

A scaled-back US remittance tax could offer some relief to most migrants and foreign-born workers, although the new charge could still have an impact on the world's poorest. The Senate most recently revised President Donald Trump's ' One Big Beautiful Bill ' Act, reducing an excise tax on remittances from 3.5 per cent to 1 per cent. The new provision also excludes transfers from US bank accounts, as well as debit and credit cards issued in the US. With the bill passed by the House of Representatives, it now heads to Mr Trump's desk to be signed. The tax would apply if cash, a money transfer order, cashier's check or similar is used to transfer funds. Those to be most impacted by the new tax include green card and visa holders, temporary residents and lawful permanent residents. Foreign employees on a H-1B visa or an H-2B visa would also be subject to the excise tax. US citizens would be exempt from this new tax, but they would be required to provide proof of their citizenship through a 'qualified' money transfer provider such as Western Union. The tax would be collected by the remittance company and then paid quarterly to to the treasury department. The new law would be set to take effect after December 31 this year. The tax is a continuation of Mr Trump's hardline stance on immigration, with Vice President JD Vance arguing it would deter illegal immigration. It has also received significant pushback from Mexico, which was the largest destination for US remittances in 2023 at $53 billion. People are waiting for money because maybe they need it for medical supplies or to pay the rent Remittance sender 'People are waiting for money because maybe they need it for medical supplies or to pay the rent,' said one individual based in Chicago, who was granted anonymity for this story. The individual, who regularly sends remittances to their father in Mexico, while the new law could make it more difficult to send money back home, senders are unlikely to be deterred. 'People who want to send money, they're going to find other ways to send the money,' they said. Remittances worldwide More than $650 billion was received in remittances worldwide in 2023, according to the most recent data available from the World Bank. 'And for many countries, they are basically the only source of finance,' said Helen Dempster, a policy fellow at the Centre for Global Development. While remittances help individuals with purchasing basic needs, they are also a vital tool for boosting development and count as a significant source of gross domestic product in low-income countries. For example, World Bank data shows remittances accounted for 38.4 per cent of Tajikistan's GDP in 2023 compared to 3.4 per cent in India. At more than $93 billion, the US sent remittances more than anywhere else in the world in 2023, according to most recent World Bank data. Meanwhile, India is the largest receiver at $129 billion. Mexico remains the largest receiver of US remittances at $53 billion in 2023, according to the Migration Data Portal. But US remittances are far-reaching. Other top receivers of US remittances include India ($16 billion), the Philippines ($13 billion), China ($13 billion) and Pakistan ($6 billion). Lebanon ($1 billion), Jordan ($610 million), Tunisia ($446 million) Iraq ($80 million) and Saudi Arabia ($65 million) all receive US remittances as well. On a broader level, a US remittance tax could have a disproportionate affect on the world's poorest economies that rely on them for economic growth. Indeed, remittances are the largest source of external financing for developing- and low-income countries, surpassing foreign direct investment and official development assistance. While India is the largest receiver of remittances in the world, its share towards gross national income is smaller to that compared to low-income countries like Jordan, Guatemala or Honduras. 'A country like India is much more able to weather that impact than a country like Jordan,' said Helen Dempster, a policy fellow at the Centre for Global Development. Others to be significantly impacted by this include many countries in South and Central America such as Honduras, El Salvador and Guatemala. 'It's really doubling down on impact in the world's poorest countries off the back of aid cuts, which will already be reducing their ability to be able to meet their own needs+-,' Ms Dempster said. How practical is the new tax? While the scaled-back version will make it less expensive for certain senders to send money back home, whether or not people will seek to find ways around it remains an open question. 'A punitive tax like this propels people that are sending money abroad to seek out alternatives, because their real sort of conditions aren't changing,' said Ananya Kumar of the Atlantic Council's GeoEconomics Centre. 'So they're just seeking out alternatives which are going to be less regulated, they're going to be less transparent, and therefore making it less safe.' Even with the excise tax at 1 per cent, the non-partisan Joint Committee on Taxation estimates it will generate nearly 10 times the amount of revenue a 3.5 per cent tax would generate. According to the committee, a 1 per cent tax would bring in a revenue of almost $10 billion. While the latest bill significantly defangs the original proposal, Laura Snyder, a Paris-based lawyer, said the tax will most impact the undocumented, the poor and those who lack the funds to have US assets. And because of that, those who receive remittances will be harmed as well. 'The people who will be most affected by the remittance tax will be the intended recipients of the funds," she said. "They are the poorest of the poor. Because of the tax, they will receive less badly needed money."

Hamas seeks ceasefire guarantees as scores more killed in Gaza
Hamas seeks ceasefire guarantees as scores more killed in Gaza

Dubai Eye

time2 hours ago

  • Dubai Eye

Hamas seeks ceasefire guarantees as scores more killed in Gaza

Hamas is seeking guarantees that a new US ceasefire proposal for Gaza would lead to the war's end, a source close to the group said on Thursday, as medics said Israeli strikes across the territory had killed scores more people. Israeli officials said prospects for reaching a ceasefire deal and hostage deal appeared high, nearly 21 months since the war between Israel and Hamas began. On the ground, intensified Israeli strikes across Gaza continued unabated, killing at least 59 people on Thursday, according to health authorities in the territory. Efforts for a Gaza truce have gathered steam after the US secured a ceasefire to end a 12-day aerial conflict between Israel and Iran. On Tuesday, US President Donald Trump said that Israel had accepted the conditions needed to finalise a 60-day ceasefire with Hamas, during which the parties will work to end the war. Hamas is seeking clear guarantees that the ceasefire will eventually lead to the war's end, the source close to the group said. Two Israeli officials said that those details were still being worked out. Ending the war has been the main sticking point in repeated rounds of failed negotiations. A separate source familiar with the matter said that Israel was expecting Hamas' response by Friday and that if it was positive, an Israeli delegation would join indirect talks to cement the deal. It was unclear whether those would be held in Egypt or Qatar, the two countries that have been mediating talks. The proposal includes the staggered release of 10 living Israeli hostages and the return of the bodies of 18 more in exchange for Palestinian prisoners held in Israeli jails, sources say. Of the 50 remaining hostages in Gaza, 20 are believed to still be alive. A senior Israeli official close to Prime Minister Benjamin Netanyahu said preparations were in place to approve a ceasefire deal even as the premier heads to Washington to meet Trump on Monday. 'READINESS TO ADVANCE' Israeli Energy Minister Eli Cohen, who sits on Netanyahu's security cabinet, told news website Ynet that there was "definitely readiness to advance a deal". In Gaza, however, there was little sign of relief. At least 17 people were killed in an Israeli strike that hit a school in Gaza City where displaced families were sheltering, according to medics. According to medics at Nasser hospital farther south, at least 20 people were killed by Israeli fire en route to an aid distribution site. The Israeli military said it was looking into the reports and that its forces were taking precautions to mitigate harm to civilians as it battled Hamas throughout Gaza. The war began when Hamas fighters stormed into Israel on October 7, 2023, killing 1,200 people and taking 251 hostages back to Gaza, according to Israeli tallies. Israel's subsequent assault has killed more than 57,000 Palestinians, according to the Gaza health ministry, while displacing most of the population of more than 2 million, triggering widespread hunger and leaving much of the territory in ruins. Israel says it won't end the war while Hamas is still armed and ruling Gaza. Hamas, severely weakened, says it won't lay down its weapons but is willing to release all the hostages still in Gaza if Israel ends the war.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store