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GOP Senate Pushes Through $3.3 Trillion Tax And Spending Overhaul
GOP Senate Pushes Through $3.3 Trillion Tax And Spending Overhaul

Int'l Business Times

timea day ago

  • Business
  • Int'l Business Times

GOP Senate Pushes Through $3.3 Trillion Tax And Spending Overhaul

In a vote that underscored deep divisions on Capitol Hill, Senate Republicans pushed through a sweeping $3.3 trillion fiscal package early Tuesday, narrowly passing the legislation that has become a centerpiece of Donald Trump's revived economic agenda. Vice President J.D. Vance cast the tie-breaking vote in a 50-50 split just before dawn, ending hours of high-stakes debate over a bill Republicans have branded the American Prosperity, Security, and Taxpayer Relief Act—but which Trump has repeatedly promoted as the "Big Beautiful Bill." The legislation now heads to the House, where GOP leaders are aiming for final passage ahead of the July 4 recess. Inside the Bill: Tax Relief, Program Cuts, and Border Security At the heart of the measure are permanent extensions to the 2017 tax cuts, a lower corporate tax rate of 17%, and fresh incentives for companies investing in U.S.-based manufacturing, artificial intelligence and advanced technology infrastructure. To help offset the price tag, the bill slashes federal outlays on health care and social programs, including Medicaid, food assistance and student loan subsidies. Work requirements for recipients of federal aid would also expand under the plan. Other major components include: $80 billion in new border security funding , earmarked for construction, surveillance, and expanded immigration enforcement. , earmarked for construction, surveillance, and expanded immigration enforcement. A rollback of climate-related tax credits, including incentives for electric vehicles and clean energy projects. A freeze on new federal hires and cuts to agency discretionary budgets. Reactions: Applause, Warnings and Dissent Republicans hailed the bill as a "return to common-sense economics," arguing it would reinvigorate U.S. industry and rein in bloated federal programs. Senate Minority Leader Mitch McConnell called the legislation "a long-overdue course correction for a government that spends too much and delivers too little." But Democrats and advocacy groups condemned the package, describing it as a handout to corporations at the expense of vulnerable families. Senate Majority Leader Chuck Schumer said the cuts would "gut the middle class in exchange for boardroom bonuses." Even within GOP ranks, dissent emerged. Sen. Susan Collins (R-Maine) opposed the bill over cuts to health programs in rural states, while Sen. Rand Paul (R-Ky.) raised alarms about long-term deficit growth. Markets Cautious, Fed Eyes Inflation Risks Investor sentiment was mixed Tuesday morning, as markets weighed the prospect of aggressive tax cuts against the risk of renewed inflation. The U.S. dollar slid to a multi-year low, while Treasury yields rose slightly in early trading. Federal Reserve Chair Jerome Powell issued a brief statement warning that "unbalanced fiscal momentum" could complicate the central bank's ability to ease interest rates later this year. On Wall Street, clean energy firms slipped on fears of subsidy losses, while cloud and AI-related stocks saw gains in anticipation of corporate tax relief and tech-focused incentives. Experts Divided on Economic Impact Economists remain split on the bill's long-term implications. "This is not just a tax cut—it's a reordering of federal priorities," said Angela Tse, a policy analyst at the Brookings Institution. "While it may boost near-term corporate activity, the social cost could be substantial." Others argue the bill could deliver real gains for U.S. competitiveness, especially in the face of global economic shifts. "If implemented effectively, it could position the U.S. as a dominant force in the next wave of innovation," said Mark Leighton, a senior economist at Deloitte. However, early scoring from the Committee for a Responsible Federal Budget estimated that the legislation would add nearly $900 billion to the deficit over the next 10 years, even after accounting for reduced spending. A Political Stakes Game Ahead of 2025 Elections With Trump expected to formally accept the Republican nomination in August, the "Big Beautiful Bill" has become a signature part of his pitch to voters: tough on immigration, friendly to business, and tough on what he calls "wasteful welfare." Democrats have vowed to make the bill a central issue in swing states, targeting its effects on health care access, public education, and clean energy jobs. House Republicans plan to bring the bill to a vote by Friday, hoping to avoid any internal splintering and give Trump a legislative win as campaign season intensifies.

They Didn't Have to Do This
They Didn't Have to Do This

Atlantic

timea day ago

  • Business
  • Atlantic

They Didn't Have to Do This

In their heedless rush to enact a deficit-exploding tax bill so massive that they barely understand it, Senate Republicans call to mind a scene in The Sopranos. A group of young aspiring gangsters decides to stick up a Mafia card game in hopes of gaining the mobsters' respect and being brought into the crew. At the last moment, the guys briefly reconsider, before one of them supplies the decisive argument in favor of proceeding: 'Let's do it before the crank wears off.' After that, things go as you might expect. Like the Mafia wannabes, congressional Republicans have talked themselves into a plan so incomprehensibly reckless that to describe it is to question its authors' sanity. As of today's 50–50 Senate vote, with Vice President J. D. Vance breaking the tie, the House and Senate have passed their own versions of the bill. The final details still have to be negotiated, but the foundational elements are clear enough. Congress is about to impose massive harm on tens of millions of Americans—taking away their health insurance, reducing welfare benefits, raising energy costs, and more—in order to benefit a handful of other Americans who least need the help. The bill almost seems designed to generate a political backlash. Given that President Donald Trump and the GOP, unlike the morons in The Sopranos, are not collectively under the influence of crystal meth, the question naturally arises: Why are they doing this? Republicans have historically been hesitant to pay for their tax cuts via offsetting cuts to government spending. This is politically rational in the short term. Reductions to government programs affect a much larger group of voters than the slice of wealthy Americans who benefit from GOP tax cuts. To avoid that backlash, congressional Republicans typically finance their tax bills with increased borrowing, rather than reduced spending. The goal is to put the costs off to the distant future. The One Big Beautiful Bill Act employs this technique, adding some $3 trillion to the national debt. But because the cost of the tax cuts is so massive, and the budget deficit already so large, Republicans could not put the entire cost on the credit card this time. Instead, they plan to pay for a portion of the cost with budget cuts. This will expose them to a kind of blowback they have never experienced before. Polling shows that the megabill is about 20 points underwater, reflecting the fact that its basic outline—a regressive tax cut paired with reduced spending on Medicaid—violates the public's moral intuitions. And however much voters oppose the legislation in the abstract, they will hate it far more once it takes effect. Republicans have mostly brushed off this brutal reality with happy talk. During a pep rally to psych up Congress to push the bill through before the crank wears off, Trump tried to reassure nervous legislators that the voters wouldn't mind. 'We're cutting $1.7 trillion in this bill, and you're not going to feel any of it,' he explained. Trump was nodding at the claim that cuts to health-care subsidies and food assistance would be limited to fraudulent beneficiaries and other waste. Not only is this nowhere close to true, but there is also no conceivable world in which it could be true. Even if $1.7 trillion worth of benefits really were going to undocumented immigrants or fraudsters, the cuts would still affect the doctors and hospitals who give them care, the farmers and grocers who sell them food, and so on. Jonathan Chait: The cynical Republican plan to cut Medicaid In reality, the megabill will take food assistance away from some 3 million Americans, while causing 12 million to lose their health insurance. That is how you save money: by taking benefits away from people. Congress is not finding magical efficiencies. To the contrary, the bill introduced inefficiencies by design. The main way it will throw people off their health insurance is by requiring Medicaid recipients to show proof of employment. States that have tried this have found the paperwork so onerous that most people who lose their insurance are actually Medicaid-eligible, but unable to navigate the endless bureaucratic hassle. The end result will be to punish not only the millions of Americans who lose Medicaid, but also the millions more who will pay an infuriating time tax by undergoing periodic miniature IRS audits merely to maintain access to basic medical care. Another source of cost savings in the megabill involves killing tax credits and subsidies for renewable energy. Because renewables supply some 90 percent of new energy capacity in the United States, and because electricity demand is rising dramatically, these components of the bill will raise household costs, with the highest spikes hitting Texas, Oklahoma, Kansas, Missouri, Kentucky, and South Carolina, which have huge wind and solar resources. Perhaps the most severe political risk of the megabill is the potential for setting off a debt crisis. Rising deficits can cause interest rates to rise, which forces the government to borrow more money to pay the interest on its debt, which in turn puts even more upward pressure on rates, in a potentially disastrous spiral. This prospect is far from certain, but should it come to pass, it would dwarf the other harms of the bill. You'd think sheer venal self-interest, if nothing else, would cause members of the Republican majority to hesitate before wreaking havoc on multiple economic sectors. Yet none of these outcomes has given them pause. One explanation is that they don't understand just how unpopular the bill is apt to be when it takes effect. Many Republicans rely on party-aligned media for their news, and these sources have mostly cheerled the bill while ignoring its downsides. Both chambers of Congress have rushed the bill through with minimal scrutiny, shielding members from exposure to concerns. Even the White House seems unaware of what exactly it's pressuring Congress to do. On Monday, when a reporter asked Press Secretary Karoline Leavitt about the megabill's proposed tax on wind and solar energy, she appeared totally unfamiliar with the measure and punted the question. (The tax provision was later removed.) When the Affordable Care Act passed, 15 years ago, Republicans protested that the law had been rushed through Congress. That was not true: The ACA was painstakingly shaped over the course of a year. But the attack seems to have revealed a belief among Republicans that speed and secrecy are political advantages that a shrewd party would employ. They have utilized this method to stampede members of Congress into enacting sweeping social change with minimal contemplation. The second explanation is that Republicans in Congress, or at least some of them, do understand the consequences of their actions, and are willing to accept the political risk because they truly believe in what they're doing. Republicans have, after all, spent decades fighting to reduce the progressivity of the tax code and to block the expansion of guaranteed health care for people unable to purchase it on their own. The third explanation is that the political logic of doing the president's bidding has created an unstoppable momentum. Trump has been flexible on the specifics of the legislation. (He floated slightly raising the top tax rate on the rich, to disarm a Democratic attack on it, only for Republicans in Congress to shoot him down.) His sine qua non for the bill is that it be big and beautiful. Using Trumpian lingo to label the bill was a clever decision to brand it as a Trump bill rather than to identify the measure by its much less popular contents. Annie Lowrey: A big, bad, very ugly bill Trump has accordingly treated internal dissent ruthlessly. When Elon Musk denounced the bill for blowing up the debt and cutting energy technology, Trump threatened to cut Musk's federal subsidies (subsidies that, curiously enough, he had no previous objection to maintaining). When Senator Thom Tillis of North Carolina criticized the bill's Medicaid cuts, Trump threatened to back a primary challenger in next year's midterms. Tillis immediately announced he will not seek reelection. Republicans in Congress have grumbled, occasionally trying to exert leverage to force policy changes. But, with rare exceptions, they have never entertained the prospect of actually opposing Trump's big, beautiful bill. Their criticism begins from the premise that its passage is necessary. They keep repeating the phrase 'Failure is not an option,' a mantra that seems designed to prevent them from considering the possibility that passing the bill could be worse than the alternative. Senator Josh Hawley wrote a New York Times op-ed opposing Medicaid cuts, then fell in line. 'This has been an unhappy episode here in Congress, this effort to cut Medicaid,' he told NBC News, referring to an effort that he then personally participated in by voting in favor of the bill. Or perhaps Republicans in Washington have simply grown inured to Trump-era warnings of catastrophe, which have blared for a decade on end, with accelerating frequency during the second Trump term. Trump has gone to war with the global economy, unilaterally slashed huge swaths of the government, threatened to imprison his enemies, and so on, and yet these affronts never quite bring the widespread devastation—and public revolt—that Trump's critics warn of. One gets the sense that elected Republicans have stopped listening. They have picked a bad time to let their guard down, however, because this bill is different. One way is that legislation, unlike executive action, is not subject to the TACO principle. Once a law has been passed, Trump can't just quietly back down. The other is that they will all have cast a vote for it. An angry public won't merely blame Trump. The ignominy for the disaster will fall upon its authors.

Donald Trump's Big Beautiful Bill narrowly passes the United States Senate, netizens say it's 'war on the American public'
Donald Trump's Big Beautiful Bill narrowly passes the United States Senate, netizens say it's 'war on the American public'

Time of India

timea day ago

  • Politics
  • Time of India

Donald Trump's Big Beautiful Bill narrowly passes the United States Senate, netizens say it's 'war on the American public'

President Donald Trump's 'Big Beautiful Bill' has narrowly passed the United States Senate by the narrowest of margins, with Vice President J.D. Vance casting the deciding vote. Given all the amendments the bill had undergone in the Senate, it will now be sent back to the House of Representatives before going to the President's desk to be signed into law. Donald Trump's legislative agenda has been one of the most ambitious and controversial in modern American history, with social media reactions reflecting that sentiment in light of the bill's passing. Trump's detractors maintain the bill's tax cuts will disproportionately benefit the rich while the cuts to the social safety net will harm the marginalized. Trump's proponents, meanwhile, are taking a victory lap after successfully passing such ambitious legislation. Democrats and Donald Trump's critics slam the passage of the bill Democratic politicians, as well as critics of Donald Trump, have slammed the passage of the bill. Senator Chris Murphy of Connecticut condemned the Senate Republicans for mostly voting along party lines, stating that they all would have to live with 'the horror of this bill'. Final vote. 50-50. VP breaks the tie. One single GOP Senator could have stopped this abomination. Saved millions of parents from watching their child go hungry. Saved the lives destroyed when Medicaid disappears. They will all live forever with the horror of this bill. Republican Senator Lisa Murkowski was singled out for her acquiescence to Donald Trump, as she lobbied for concessions to her state, Alaska, but did not oppose the bill outright. The Senate version of the Big Beautiful Bill has passed thanks to Lisa Murkowski, who got a bounty of goodies for Alaska (though not as many as initially conceived).The action moves back to the the latest on what happened: (link below) Maria Shriver noted that only three Republican Senators had voted against the bill, which she harshly criticized as something that would hurt everyday citizens and the country as a whole. Only three could muster the courage, only three. At least good for fellow Americans, regardless of who you voted for in last election this bill hurts everyday Americans, this bill hurts our country, this bill hurts our future. Senator Raphael Warnock tried to outline a path forward by hoping that the bill would be stopped at the House of Representatives when it went back there for another vote. I am outraged that the Senate has passed this immoral tax bill put forward by Republicans in this fight is not over. Now the bill goes back to the House for another vote. Keep raising your voice. The people are uniting against this Big Ugly Bill. Alexandria Ocasio-Cortez called J.D. Vance's tiebreaker vote a "betrayal of working families". JD Vance was the deciding vote to cut Medicaid across the absolute and utter betrayal of working families. Leftist commentator Kyle Kulinski said the US Senate had 'declared war on the American public'. The US senate just declared war on the American public. A bill that destroys Medicaid while cutting taxes for the wealthiest at a time when we already have record income and wealth inequality is societal suicide. Former Labor Secretary Robert Reich accused Republicans of hypocrisy and perpetuating socialism for the rich. Medicare for All - "That's socialism!"Social Security - "That's socialism!"Debt free education - "That's socialism!"Universal childcare - "That's socialism!"$1 trillion+ in tax cuts for the wealthy..."That's just how it is." Donald Trump and the White House take a victory lap The White House's X account took a victory lap by proudly proclaiming the passage of Trump's 'Big Beautiful Bill'. MAGA VICTORY: The United States Senate PASSES President Trump's One Big Beautiful Bill 🇺🇸🦅🎉 Soon afterwards, Speaker of the House Mike Johnson promised that he'd ensure the bill got passed as soon as possible so that it could get signed into law by the 4th of July. My joint statement with Leader @SteveScalise, @GOPMajorityWhip, and Chairwoman @RepLisaMcClain on Senate passage of the One Big Beautiful Bill: The House will work quickly to pass the One Big Beautiful Bill that enacts President Trump's full America First agenda by the Fourth…

Senate passes Trump's ‘big, beautiful bill'
Senate passes Trump's ‘big, beautiful bill'

American Military News

timea day ago

  • Business
  • American Military News

Senate passes Trump's ‘big, beautiful bill'

President Donald Trump's 'big, beautiful bill' was passed by the U.S. Senate on Tuesday following a tie-breaking vote by Vice President J.D. Vance. This is breaking news that will be updated as more information becomes available. Keep reading below. According to Fox News, the president's 'big, beautiful bill' was passed with a 50-50 vote on Tuesday and a tie-breaking vote cast by Vance. The outlet noted that all of the Republican senators voted in favor of the bill except Sen. Susan Collins (R-Maine), Sen. Rand Paul (R-Ky.), and Sen. Thom Tillis (R-N.C.). The outlet noted that all of the Democrat senators voted against the bill on Tuesday. Following the vice president's tie-breaking vote in the Senate, Trump's 'big, beautiful bill' will now head back for a vote in the U.S. House of Representatives.

Trump's tax, spending cuts ‘big beautiful bill' clears key U.S. Senate vote as Republicans race to pass it by July 4
Trump's tax, spending cuts ‘big beautiful bill' clears key U.S. Senate vote as Republicans race to pass it by July 4

The Hindu

time4 days ago

  • Business
  • The Hindu

Trump's tax, spending cuts ‘big beautiful bill' clears key U.S. Senate vote as Republicans race to pass it by July 4

Senate Republicans voting in a dramatic late on Saturday (June 28, 2025) session narrowly cleared a key procedural step as they race to advance President Donald Trump's package of tax breaks, spending cuts and bolstered deportation funds by his July Fourth deadline. The tally, 51-49, came after a tumultuous session with Vice President J.D. Vance on hand if needed to break the tie. Tense scenes played out in the chamber as voting came to a standstill, dragging for hours as holdout senators huddled for negotiations. In the end, two Republicans opposed the motion to proceed to debate, joining all Democrats. It's still a long weekend of work to come.

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