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US-Canada trade talks lift Wall St futures to new high

US-Canada trade talks lift Wall St futures to new high

Wall Street futures have reached record highs as optimism over US trade negotiations with key partners helps boost sentiment in markets.
Meanwhile, world stocks were hovering just below recent record highs and European shares had trimmed early falls.
Canada said on Sunday it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from US President Donald Trump.
The talks are aimed at getting a deal done by July 21, extending Trump's original July 9 deadline for his "reciprocal" tariffs. Officials have suggested most deals could now be done by the September 1 Labor Day holiday.
Investors were also keeping a wary eye on the progress of a huge US tax-cutting and spending bill slowly making its way through the Senate, with signs it may not make it by Trump's preferred July 4 deadline.
The Congressional Budget Office estimated the bill would add $3.3 trillion to the nation's debt over a decade, testing foreign appetite for US Treasuries.
There was no doubting the demand for the US tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.5 per cent, while S&P 500 futures added 0.4 per cent, having touched record highs.
"We have been surprised at just how resilient markets have been in the face of a tremendous amount of uncertainty," Kevin Gardiner, global investment strategist at Rothschild & Co, said.
"Markets continue to look resilient, though we note that we haven't seen equity valuations look more expensive since 2000," he added.
European stocks trimmed early falls on Monday, but were set to log gains for the quarter, while investors monitored signs of any delay on the July 9 tariff deadline, looming large.
They were down just 0.1 per cent, though European defence stocks led sectoral gains with a rise of just over 1 per cent.
The sector has remained buoyant since last week's NATO pledge to spend 3.5 per cent of GDP on core defence and 1.5 per cent on broader defence-related measures, a jump worth hundreds of billions of dollars a year.
Attention also turned to a European Central Bank conference in Sintra, Portugal, as well as key euro zone inflation reports due this week and the closely watched US non-farm payrolls report on Thursday.
Asian markets closed on a mixed note with Chinese blue chips up 0.4 per cent, after surveys showed manufacturing improved slightly in June while service activity picked up. Hong Kong stocks closed down 0.9 per cent while Japan's Nikkei rose 0.8 per cent.
A holiday on Friday means US jobs data will come a day early, with analysts forecasting a rise of 110,000 in June and a rising jobless rate reaching almost a year high at 4.3 per cent.
The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September.
The prospect of policy easing has helped Treasuries weather worries on the ballooning US budget deficit.
Ten-year Treasury yields fell three basis points to 4.25 per cent, having fallen seven bps last week.
The dollar struggled in part over concern that tariffs and policy whipsaws from the White House will drag on economic growth.
The euro steadied, having climbed more than one per cent last week to its highest levels since 2021 against a broadly weak dollar.
Sterling tipped 0.1 per cent lower to just below a similar peak hit last week, trading near $1.37.
The dollar was down 0.3 per cent to 144.19 yen and the dollar index eased 0.2 per cent to 97.237, a whisker above three-year lows.
The dollar has fallen by more at this stage in the year than in any previous year since the US moved to a free-floating exchange rate in 1973.
"At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move," James Reilly, a senior markets economist at Capital Economics, said.
In commodity markets, the general revival in risk sentiment weighed on gold, which rose 0.4 per cent to $3,285 an ounce but held below April's record top of $3,500.
Oil prices continued to struggle on concerns about plans for increased output from OPEC+, which contributed to a 12 per cent slide last week.
Brent declined 17 cents to $67.60 a barrel, while US crude fell 26 cents to $65.26 per barrel.
Wall Street futures have reached record highs as optimism over US trade negotiations with key partners helps boost sentiment in markets.
Meanwhile, world stocks were hovering just below recent record highs and European shares had trimmed early falls.
Canada said on Sunday it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from US President Donald Trump.
The talks are aimed at getting a deal done by July 21, extending Trump's original July 9 deadline for his "reciprocal" tariffs. Officials have suggested most deals could now be done by the September 1 Labor Day holiday.
Investors were also keeping a wary eye on the progress of a huge US tax-cutting and spending bill slowly making its way through the Senate, with signs it may not make it by Trump's preferred July 4 deadline.
The Congressional Budget Office estimated the bill would add $3.3 trillion to the nation's debt over a decade, testing foreign appetite for US Treasuries.
There was no doubting the demand for the US tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.5 per cent, while S&P 500 futures added 0.4 per cent, having touched record highs.
"We have been surprised at just how resilient markets have been in the face of a tremendous amount of uncertainty," Kevin Gardiner, global investment strategist at Rothschild & Co, said.
"Markets continue to look resilient, though we note that we haven't seen equity valuations look more expensive since 2000," he added.
European stocks trimmed early falls on Monday, but were set to log gains for the quarter, while investors monitored signs of any delay on the July 9 tariff deadline, looming large.
They were down just 0.1 per cent, though European defence stocks led sectoral gains with a rise of just over 1 per cent.
The sector has remained buoyant since last week's NATO pledge to spend 3.5 per cent of GDP on core defence and 1.5 per cent on broader defence-related measures, a jump worth hundreds of billions of dollars a year.
Attention also turned to a European Central Bank conference in Sintra, Portugal, as well as key euro zone inflation reports due this week and the closely watched US non-farm payrolls report on Thursday.
Asian markets closed on a mixed note with Chinese blue chips up 0.4 per cent, after surveys showed manufacturing improved slightly in June while service activity picked up. Hong Kong stocks closed down 0.9 per cent while Japan's Nikkei rose 0.8 per cent.
A holiday on Friday means US jobs data will come a day early, with analysts forecasting a rise of 110,000 in June and a rising jobless rate reaching almost a year high at 4.3 per cent.
The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September.
The prospect of policy easing has helped Treasuries weather worries on the ballooning US budget deficit.
Ten-year Treasury yields fell three basis points to 4.25 per cent, having fallen seven bps last week.
The dollar struggled in part over concern that tariffs and policy whipsaws from the White House will drag on economic growth.
The euro steadied, having climbed more than one per cent last week to its highest levels since 2021 against a broadly weak dollar.
Sterling tipped 0.1 per cent lower to just below a similar peak hit last week, trading near $1.37.
The dollar was down 0.3 per cent to 144.19 yen and the dollar index eased 0.2 per cent to 97.237, a whisker above three-year lows.
The dollar has fallen by more at this stage in the year than in any previous year since the US moved to a free-floating exchange rate in 1973.
"At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move," James Reilly, a senior markets economist at Capital Economics, said.
In commodity markets, the general revival in risk sentiment weighed on gold, which rose 0.4 per cent to $3,285 an ounce but held below April's record top of $3,500.
Oil prices continued to struggle on concerns about plans for increased output from OPEC+, which contributed to a 12 per cent slide last week.
Brent declined 17 cents to $67.60 a barrel, while US crude fell 26 cents to $65.26 per barrel.
Wall Street futures have reached record highs as optimism over US trade negotiations with key partners helps boost sentiment in markets.
Meanwhile, world stocks were hovering just below recent record highs and European shares had trimmed early falls.
Canada said on Sunday it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from US President Donald Trump.
The talks are aimed at getting a deal done by July 21, extending Trump's original July 9 deadline for his "reciprocal" tariffs. Officials have suggested most deals could now be done by the September 1 Labor Day holiday.
Investors were also keeping a wary eye on the progress of a huge US tax-cutting and spending bill slowly making its way through the Senate, with signs it may not make it by Trump's preferred July 4 deadline.
The Congressional Budget Office estimated the bill would add $3.3 trillion to the nation's debt over a decade, testing foreign appetite for US Treasuries.
There was no doubting the demand for the US tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.5 per cent, while S&P 500 futures added 0.4 per cent, having touched record highs.
"We have been surprised at just how resilient markets have been in the face of a tremendous amount of uncertainty," Kevin Gardiner, global investment strategist at Rothschild & Co, said.
"Markets continue to look resilient, though we note that we haven't seen equity valuations look more expensive since 2000," he added.
European stocks trimmed early falls on Monday, but were set to log gains for the quarter, while investors monitored signs of any delay on the July 9 tariff deadline, looming large.
They were down just 0.1 per cent, though European defence stocks led sectoral gains with a rise of just over 1 per cent.
The sector has remained buoyant since last week's NATO pledge to spend 3.5 per cent of GDP on core defence and 1.5 per cent on broader defence-related measures, a jump worth hundreds of billions of dollars a year.
Attention also turned to a European Central Bank conference in Sintra, Portugal, as well as key euro zone inflation reports due this week and the closely watched US non-farm payrolls report on Thursday.
Asian markets closed on a mixed note with Chinese blue chips up 0.4 per cent, after surveys showed manufacturing improved slightly in June while service activity picked up. Hong Kong stocks closed down 0.9 per cent while Japan's Nikkei rose 0.8 per cent.
A holiday on Friday means US jobs data will come a day early, with analysts forecasting a rise of 110,000 in June and a rising jobless rate reaching almost a year high at 4.3 per cent.
The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September.
The prospect of policy easing has helped Treasuries weather worries on the ballooning US budget deficit.
Ten-year Treasury yields fell three basis points to 4.25 per cent, having fallen seven bps last week.
The dollar struggled in part over concern that tariffs and policy whipsaws from the White House will drag on economic growth.
The euro steadied, having climbed more than one per cent last week to its highest levels since 2021 against a broadly weak dollar.
Sterling tipped 0.1 per cent lower to just below a similar peak hit last week, trading near $1.37.
The dollar was down 0.3 per cent to 144.19 yen and the dollar index eased 0.2 per cent to 97.237, a whisker above three-year lows.
The dollar has fallen by more at this stage in the year than in any previous year since the US moved to a free-floating exchange rate in 1973.
"At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move," James Reilly, a senior markets economist at Capital Economics, said.
In commodity markets, the general revival in risk sentiment weighed on gold, which rose 0.4 per cent to $3,285 an ounce but held below April's record top of $3,500.
Oil prices continued to struggle on concerns about plans for increased output from OPEC+, which contributed to a 12 per cent slide last week.
Brent declined 17 cents to $67.60 a barrel, while US crude fell 26 cents to $65.26 per barrel.
Wall Street futures have reached record highs as optimism over US trade negotiations with key partners helps boost sentiment in markets.
Meanwhile, world stocks were hovering just below recent record highs and European shares had trimmed early falls.
Canada said on Sunday it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from US President Donald Trump.
The talks are aimed at getting a deal done by July 21, extending Trump's original July 9 deadline for his "reciprocal" tariffs. Officials have suggested most deals could now be done by the September 1 Labor Day holiday.
Investors were also keeping a wary eye on the progress of a huge US tax-cutting and spending bill slowly making its way through the Senate, with signs it may not make it by Trump's preferred July 4 deadline.
The Congressional Budget Office estimated the bill would add $3.3 trillion to the nation's debt over a decade, testing foreign appetite for US Treasuries.
There was no doubting the demand for the US tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.5 per cent, while S&P 500 futures added 0.4 per cent, having touched record highs.
"We have been surprised at just how resilient markets have been in the face of a tremendous amount of uncertainty," Kevin Gardiner, global investment strategist at Rothschild & Co, said.
"Markets continue to look resilient, though we note that we haven't seen equity valuations look more expensive since 2000," he added.
European stocks trimmed early falls on Monday, but were set to log gains for the quarter, while investors monitored signs of any delay on the July 9 tariff deadline, looming large.
They were down just 0.1 per cent, though European defence stocks led sectoral gains with a rise of just over 1 per cent.
The sector has remained buoyant since last week's NATO pledge to spend 3.5 per cent of GDP on core defence and 1.5 per cent on broader defence-related measures, a jump worth hundreds of billions of dollars a year.
Attention also turned to a European Central Bank conference in Sintra, Portugal, as well as key euro zone inflation reports due this week and the closely watched US non-farm payrolls report on Thursday.
Asian markets closed on a mixed note with Chinese blue chips up 0.4 per cent, after surveys showed manufacturing improved slightly in June while service activity picked up. Hong Kong stocks closed down 0.9 per cent while Japan's Nikkei rose 0.8 per cent.
A holiday on Friday means US jobs data will come a day early, with analysts forecasting a rise of 110,000 in June and a rising jobless rate reaching almost a year high at 4.3 per cent.
The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September.
The prospect of policy easing has helped Treasuries weather worries on the ballooning US budget deficit.
Ten-year Treasury yields fell three basis points to 4.25 per cent, having fallen seven bps last week.
The dollar struggled in part over concern that tariffs and policy whipsaws from the White House will drag on economic growth.
The euro steadied, having climbed more than one per cent last week to its highest levels since 2021 against a broadly weak dollar.
Sterling tipped 0.1 per cent lower to just below a similar peak hit last week, trading near $1.37.
The dollar was down 0.3 per cent to 144.19 yen and the dollar index eased 0.2 per cent to 97.237, a whisker above three-year lows.
The dollar has fallen by more at this stage in the year than in any previous year since the US moved to a free-floating exchange rate in 1973.
"At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move," James Reilly, a senior markets economist at Capital Economics, said.
In commodity markets, the general revival in risk sentiment weighed on gold, which rose 0.4 per cent to $3,285 an ounce but held below April's record top of $3,500.
Oil prices continued to struggle on concerns about plans for increased output from OPEC+, which contributed to a 12 per cent slide last week.
Brent declined 17 cents to $67.60 a barrel, while US crude fell 26 cents to $65.26 per barrel.
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The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Mr Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. Trump's Republicans have had to navigate a narrow path while shepherding the 940-page bill through a Congress that they control by the slimmest of margins. With Democrats lined up in opposition, Republicans have had only three votes to spare in both the House and Senate as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions of people uninsured. Yet they have managed to stay largely unified so far. Only three of the Senate's 53 Republicans joined with Democrats to vote against the package, which passed 51-50 after Vice President JD Vance cast the tie-breaking vote. Republican senators Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky voted against the bill. The vote came after an all-night debate in which Republicans grappled with the bill's price tag and its effect on the US healthcare system. It was not immediately clear what changes had been made to the massive package to resolve those concerns. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close as well. An initial version passed with only two votes to spare in May, and several Republicans in that chamber have said they do not support the version that has emerged from the Senate, which the non-partisan Congressional Budget Office estimates will add $US800 billion ($A1.2 trillion) more to the national debt than the House version. The House Freedom Caucus, a group of fiscal hawks who repeatedly threatened to withhold their support for the tax bill, is pushing for deeper spending cuts to reduce its total price tag. 'That's not fiscal responsibility. It's not what we agreed to,' the group said on Monday. A group of more traditional House Republicans, especially those who represent lower-income areas, object to the steeper Medicaid cuts in the Senate's plan. 'I will not support a final bill that eliminates vital funding streams our hospitals rely on,' Representative David Valadao, a California Republican, said during the weekend debate. The bill would make permanent Mr Trump's 2017 business and personal income tax cuts, which are due to expire at the end of this year, and dole out new tax breaks for tipped income, overtime and seniors that he promised during the 2024 election. It provides tens of billions of dollars for Mr Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile.

US Senate passes Trump spending bill, sends to House
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The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. Trump's Republicans have had to navigate a narrow path while shepherding the 940-page bill through a Congress that they control by the slimmest of margins. With Democrats lined up in opposition, Republicans have had only three votes to spare in both the House and Senate as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions of people uninsured. Yet they have managed to stay largely unified so far. 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It provides tens of billions of dollars for Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile. The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. Trump's Republicans have had to navigate a narrow path while shepherding the 940-page bill through a Congress that they control by the slimmest of margins. With Democrats lined up in opposition, Republicans have had only three votes to spare in both the House and Senate as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions of people uninsured. Yet they have managed to stay largely unified so far. Only three of the Senate's 53 Republicans joined with Democrats to vote against the package, which passed 51-50 after Vice President JD Vance cast the tie-breaking vote. Republican senators Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky voted against the bill. The vote came after an all-night debate in which Republicans grappled with the bill's price tag and its effect on the US healthcare system. It was not immediately clear what changes had been made to the massive package to resolve those concerns. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close as well. An initial version passed with only two votes to spare in May, and several Republicans in that chamber have said they do not support the version that has emerged from the Senate, which the non-partisan Congressional Budget Office estimates will add $US800 billion ($A1.2 trillion) more to the national debt than the House version. The House Freedom Caucus, a group of fiscal hawks who repeatedly threatened to withhold their support for the tax bill, is pushing for deeper spending cuts to reduce its total price tag. "That's not fiscal responsibility. It's not what we agreed to," the group said on Monday. A group of more traditional House Republicans, especially those who represent lower-income areas, object to the steeper Medicaid cuts in the Senate's plan. "I will not support a final bill that eliminates vital funding streams our hospitals rely on," Representative David Valadao, a California Republican, said during the weekend debate. The bill would make permanent Trump's 2017 business and personal income tax cuts, which are due to expire at the end of this year, and dole out new tax breaks for tipped income, overtime and seniors that he promised during the 2024 election. It provides tens of billions of dollars for Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile. The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. Trump's Republicans have had to navigate a narrow path while shepherding the 940-page bill through a Congress that they control by the slimmest of margins. With Democrats lined up in opposition, Republicans have had only three votes to spare in both the House and Senate as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions of people uninsured. Yet they have managed to stay largely unified so far. Only three of the Senate's 53 Republicans joined with Democrats to vote against the package, which passed 51-50 after Vice President JD Vance cast the tie-breaking vote. Republican senators Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky voted against the bill. The vote came after an all-night debate in which Republicans grappled with the bill's price tag and its effect on the US healthcare system. It was not immediately clear what changes had been made to the massive package to resolve those concerns. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close as well. An initial version passed with only two votes to spare in May, and several Republicans in that chamber have said they do not support the version that has emerged from the Senate, which the non-partisan Congressional Budget Office estimates will add $US800 billion ($A1.2 trillion) more to the national debt than the House version. The House Freedom Caucus, a group of fiscal hawks who repeatedly threatened to withhold their support for the tax bill, is pushing for deeper spending cuts to reduce its total price tag. "That's not fiscal responsibility. It's not what we agreed to," the group said on Monday. A group of more traditional House Republicans, especially those who represent lower-income areas, object to the steeper Medicaid cuts in the Senate's plan. "I will not support a final bill that eliminates vital funding streams our hospitals rely on," Representative David Valadao, a California Republican, said during the weekend debate. The bill would make permanent Trump's 2017 business and personal income tax cuts, which are due to expire at the end of this year, and dole out new tax breaks for tipped income, overtime and seniors that he promised during the 2024 election. It provides tens of billions of dollars for Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile. The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. 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It was not immediately clear what changes had been made to the massive package to resolve those concerns. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close as well. An initial version passed with only two votes to spare in May, and several Republicans in that chamber have said they do not support the version that has emerged from the Senate, which the non-partisan Congressional Budget Office estimates will add $US800 billion ($A1.2 trillion) more to the national debt than the House version. The House Freedom Caucus, a group of fiscal hawks who repeatedly threatened to withhold their support for the tax bill, is pushing for deeper spending cuts to reduce its total price tag. "That's not fiscal responsibility. It's not what we agreed to," the group said on Monday. A group of more traditional House Republicans, especially those who represent lower-income areas, object to the steeper Medicaid cuts in the Senate's plan. "I will not support a final bill that eliminates vital funding streams our hospitals rely on," Representative David Valadao, a California Republican, said during the weekend debate. The bill would make permanent Trump's 2017 business and personal income tax cuts, which are due to expire at the end of this year, and dole out new tax breaks for tipped income, overtime and seniors that he promised during the 2024 election. It provides tens of billions of dollars for Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile.

US Senate passes Trump's ‘big, beautiful' $3.3 trillion spending bill, sends to House
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  • West Australian

US Senate passes Trump's ‘big, beautiful' $3.3 trillion spending bill, sends to House

The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Mr Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. Trump's Republicans have had to navigate a narrow path while shepherding the 940-page bill through a Congress that they control by the slimmest of margins. With Democrats lined up in opposition, Republicans have had only three votes to spare in both the House and Senate as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions of people uninsured. Yet they have managed to stay largely unified so far. Only three of the Senate's 53 Republicans joined with Democrats to vote against the package, which passed 51-50 after Vice President JD Vance cast the tie-breaking vote. Republican senators Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky voted against the bill. The vote came after an all-night debate in which Republicans grappled with the bill's price tag and its effect on the US healthcare system. It was not immediately clear what changes had been made to the massive package to resolve those concerns. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close as well. An initial version passed with only two votes to spare in May, and several Republicans in that chamber have said they do not support the version that has emerged from the Senate, which the non-partisan Congressional Budget Office estimates will add $US800 billion ($A1.2 trillion) more to the national debt than the House version. The House Freedom Caucus, a group of fiscal hawks who repeatedly threatened to withhold their support for the tax bill, is pushing for deeper spending cuts to reduce its total price tag. 'That's not fiscal responsibility. It's not what we agreed to,' the group said on Monday. A group of more traditional House Republicans, especially those who represent lower-income areas, object to the steeper Medicaid cuts in the Senate's plan. 'I will not support a final bill that eliminates vital funding streams our hospitals rely on,' Representative David Valadao, a California Republican, said during the weekend debate. The bill would make permanent Mr Trump's 2017 business and personal income tax cuts, which are due to expire at the end of this year, and dole out new tax breaks for tipped income, overtime and seniors that he promised during the 2024 election. It provides tens of billions of dollars for Mr Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile.

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