&w=3840&q=100)
Republicans use ‘magic trick' to hide $3.8 tn cost of Trump's One Big Beautiful Bill
Republicans in the US Congress are resorting to a 'magic trick' to make as much as $3.8 trillion in costs of President Donald Trump's 'One Big Beautiful Bill' vanish.
Trump's signature bill, which he has asked the Congress to pass by Friday, has attracted widespread criticism for adding trillions to government spending, cutting billions in healthcare and food benefits, and using these cuts to fund the president's political agenda.
Republican Senators on Monday voted to treat Trump's 2017 tax cuts, which they are set to renew in the present bill, as permanent. With such an accounting trick, they have claimed that as tax cuts are already permanently, extending them would not cost anything.
STORY CONTINUES BELOW THIS AD
With this one claim, Republicans have sought to artificially remove $3.8 trillion from the costs of the bill.
Senate Minority Leader Chuck Schumer has called it 'fake math'.
'Republicans are doing something the Senate has never, never done before — deploying fake math and accounting gimmicks to hide the true cost of their bill,' said Schumer.
To set the record straight, the 2017 tax cuts were not permanent and this 'magic trick' does not really remove costs from the bill. Renewing tax cuts from 2017 means foregoing tax revenue and simply refusing to count this foregone revenue as a cost does not mean that the revenue does not get lost.
Overall, Trump's bill as amended by Senate Republicans is set to add $3.3 trillion to the federal deficit over the next decade, according to the Congressional Budget Office (CBO). This is up from the bill passed by the House Republicans that would have added $2.4 trillion to the federal deficit.
The Senate Republicans' bill would also remove health insurance of 11.8 million Americans and cut food assistance as well. This is nearly 1 million more than the House version of the bill.
Schumer further said, 'Senate Minority Leader Chuck Schumer said, 'Republicans are on the verge of passing the most expensive legislation in US history, providing tax advantages to billionaires while stripping away Medicaid, SNAP benefits, and well-paying jobs for millions.'
STORY CONTINUES BELOW THIS AD
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
28 minutes ago
- Economic Times
US stock market today: Wall Street edges higher as S&P 500 gains on Trump's Vietnam trade deal, Nasdaq jumps, Dow steady amid weak ADP jobs data
S&P 500 rises as President Trump announces new U.S.-Vietnam trade deal, but gains remain modest amid weak June payroll data. Market eyes Thursday's official jobs report and possible Fed rate cut. Dow trades flat, Nasdaq gains 0.7%. S&P 500 rises after Trump reveals Vietnam trade deal, but weak jobs data keeps gains in check- The S&P 500 rose on Wednesday following a surprise announcement from President Donald Trump about a new U.S.-Vietnam trade deal, which he shared via Truth Social. The benchmark index edged up 0.2%, driven by fresh hopes of improving global trade relations. However, the enthusiasm on Wall Street was held back by troubling labor market data. According to the latest ADP payrolls report, the U.S. private sector lost 33,000 jobs in June, the first monthly drop since March 2023, and far below economists' forecast of a 100,000-job gain. The Nasdaq Composite performed slightly better, climbing 0.7%, while the Dow Jones Industrial Average hovered near the flatline, reflecting mixed investor sentiment amid both positive trade developments and concerning economic indicators. The US stock market showed mixed movements today, July 2, 2025, with the S&P 500 and Nasdaq Composite trading higher, while the Dow Jones Industrial Average saw modest gains. The markets responded to President Donald Trump's announcement of a Vietnam trade deal, alongside investor caution over weaker-than-expected private payroll data for June. S&P 500 (via SPY ETF): 618.8 , up 0.2% , up Nasdaq Composite: +0.7% , helped by tech recovery , helped by tech recovery Dow Jones Industrial Average: Up nearly 400 points or ~0.9%, led by industrials and materials Tesla stock surged nearly 6% after reporting 384,000 Q2 deliveries, beating expectations. deliveries, beating expectations. Health-care sector dropped sharply, with one major provider falling around 40%, dragging others in the group. Materials and industrials stocks gained, as investors rotated away from tech and into value sectors. ADP private payrolls report showed a decline of 33,000 jobs in June — the first monthly drop since March 2023. jobs in June — the first monthly drop since March 2023. Economists had expected a gain of 100,000 jobs, leading to speculation about a potential Fed interest rate cut at the July meeting. jobs, leading to speculation about a potential Fed interest rate cut at the July meeting. Eyes are now on Thursday's official non-farm payroll report, forecasted to show 110,000 job gains and 4.3% unemployment. Federal Reserve decision on interest rates could shift if job data continues to weaken. Investors remain cautious, with stock indexes near all-time highs and macroeconomic uncertainty in focus. Trump's tax-and-spending bill, which just passed the Senate, is heading to the House and may influence fiscal policy outlook in the coming weeks. Tariff deadlines and ongoing geopolitical developments are also on the radar for market watchers. President Trump's announcement of a new trade deal with Vietnam provided a brief tailwind to the S&P 500 and investor sentiment. Although the president did not offer details about the agreement, the post alone was enough to shift market focus from ongoing global economic uncertainty to potential international cooperation. This deal could mark a strategic step in balancing Asian trade relations, especially as tensions with China continue to weigh on global markets. However, without specifics, analysts remain cautious. Markets are looking for clarity—such as whether the deal covers tariffs, technology exchange, or broader economic cooperation. The optimism sparked by Trump's trade news was tempered by a stark jobs report from ADP, showing that private payrolls declined by 33,000 last month. This marked the first negative reading since March 2023, and it shocked analysts, who had projected a gain of 100,000 jobs. Ross Mayfield, an investment strategist at Baird, told CNBC, 'We've been seeing a weakening of the labor market for months, and I always wondered if it would take a negative payrolls print to get the [Federal Reserve] to pay more attention.' His comment reflects growing concern that the Fed's focus on inflation may be overshadowing emerging cracks in the labor sector. Investors are now speculating whether Federal Reserve policymakers will shift course. A weak job market could become a trigger for a long-anticipated rate cut, especially as inflation pressures begin to cool. The CME Group's FedWatch tool now shows a 25% chance of a July rate cut, up from 20% just the day before. Sam Stovall, chief investment strategist at CFRA Research, believes that a softer jobs report could clear the path. 'If we end up having a fairly weak employment report, then that could allow the Fed to be cutting rates,' he said. Stovall also pointed out that Fed Chair Jerome Powell had previously mentioned that the central bank would have already cut rates if not for Trump's earlier tariff plans. Despite Wednesday's ADP data, traders are now looking ahead to Thursday's official government jobs report. Economists are forecasting a gain of 110,000 jobs for June. However, if that figure misses the mark in a similar way to ADP's number, markets may begin pricing in more aggressive Fed action later this month. This comes as stocks flirt with record highs, making them particularly sensitive to economic data and Federal Reserve decisions. Wall Street's mixed performance—where the Dow surged 400 points on Tuesday while tech-heavy indexes fell—suggests a market still unsure about its direction. In addition to the trade announcement and economic data, investors are watching Trump's tax-and-spending bill, which narrowly passed the Senate on Tuesday. The measure now returns to the House, where some GOP lawmakers remain opposed. The bill could have broad implications for sectors like infrastructure, healthcare, and manufacturing, depending on how funds are allocated. Meanwhile, the market has seen a rotation out of technology stocks and into more defensive sectors such as materials and healthcare, signaling that investors are bracing for potential economic headwinds. Index Move Today S&P 500 +0.2% Nasdaq +0.7% Dow Jones +0.9% (~400 pts) Tech stocks recovered, led by Tesla Health-care stocks under pressure Investors watch job data and Fed signals closely S&P 500 rose 0.2%; Nasdaq gained 0.7%; Dow was flat. President Trump announced a new U.S.-Vietnam trade deal, but offered no specifics. ADP report showed 33,000 private jobs lost in June, vs. 100,000 expected. Fed may consider interest rate cuts if Friday's official jobs data also disappoints. Trump's tax bill passed Senate, still faces GOP resistance in House. With Trump's trade diplomacy making waves and labor market signals flashing warning signs, all eyes are on the upcoming jobs report and the Federal Reserve's July policy meeting. The next few days could shape the trajectory of both the stock market and U.S. economic policy for the rest of 2025. Q1: Why did the S&P 500 rise after Trump's Vietnam trade deal? Because investor sentiment improved after Trump revealed a new trade agreement with Vietnam. Q2: Could weak jobs data lead to a Fed rate cut? Yes, a drop in payrolls could push the Fed to lower interest rates this month.
&w=3840&q=100)
Business Standard
31 minutes ago
- Business Standard
US-Vietnam trade deal: Trump announces 20% import tariff, market access
US President Donald Trump has confirmed a new trade agreement between the United States (US) and Vietnam, under which a 20 per cent tariff will be imposed on Vietnamese goods entering the US. Trump made the announcement on Truth Social. He said that the agreement also includes tariff-free access for American products into Vietnamese markets. As part of the deal, Vietnam has agreed to a 40 per cent tariff on any goods that are brought into the country from elsewhere and then shipped to the US. This practice, known as transshipping, is often used to avoid existing trade restrictions. Notably, media reports have highlighted concerns that China has used Vietnam as a transshipment point for goods destined for the US. Great deal of cooperation: Trump He continued: 'The Terms are that Vietnam will pay the United States a 20 per cent Tariff on any and all goods sent into our Territory, and a 40 per cent Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will 'OPEN THEIR MARKET TO THE UNITED STATES,' meaning that, we will be able to sell our product into Vietnam at ZERO Tariff.' Trump also added: 'It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!' 'Just in time' deal The deal comes just days before a 90-day suspension on Trump's reciprocal tariffs is set to end. Once expired, those tariffs would have increased duties on imports from dozens of countries. Previously, Vietnamese goods entering the US faced a flat 46 per cent tariff under the Trimp administration's "reciprocal" measures.
United News of India
31 minutes ago
- United News of India
To curb drug smuggling Maha govt will bring amendment to MCOCA: CM Fadnavis
West Mumbai, July 2 (UNI) Chief Minister Devendra Fadnavis today announced that his government will bring in an amendment to the Maharashtra Control of Organised Crime Act (MCOCA) during the ongoing monsoon session of the assembly to curb drug smuggling. While replying to a question in the House, the chief minister said in the existing law Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 which deals with drug peddlers, the accused persons get bail in most of the cases and resume their criminal acts. So a strict law is required to curb such activities . The Chief Minister also said that a separate NDPS unit has been set up in every police station in the state and officers and other personnel have been appointed in it. Coordination committees have also been set up at the district level. He added that the police have taken action in a large number of cases over the last two and a half years. UNI AAA SSP Tags: #To curb drug smuggling Maha govt will bring amendment to MCOCA: CM Fadnavis
