Latest news with #deficit
CNA
3 hours ago
- Business
- CNA
US Senate Republicans aim to push ahead on Trump's sweeping tax-cut, spending Bill
WASHINGTON: US Senate Republicans will seek to push President Donald Trump's sweeping tax-cut and spending Bill forward on Saturday (Jun 28) with a procedural vote that could kick off a marathon weekend session. The Bill would extend the 2017 tax cuts that were Trump's main first-term legislative achievement, cut other taxes and boost spending on the military and border security. Nonpartisan analysts estimate a version passed by the House of Representatives last month would add about US$3 trillion to the nation's US$36.2 trillion government debt. Senate Republicans have been deeply divided over plans to partly offset that Bill's heavy hit to the deficit, including by cutting the Medicaid health insurance program for low-income Americans. Republicans are using a legislative manoeuvre to bypass the Senate's 60-vote threshold to advance most legislation in the 100-member chamber. Their narrow margins in the Senate and House mean they can afford no more than three Republican no votes to advance a Bill that Democrats are united in opposing, saying it takes a heavy toll on low- and middle-income Americans to benefit the wealthy. Trump has pushed for Congress to pass the bill by the Jul 4 Independence Day holiday. The White House said early this month that the legislation, which Trump calls the "One Big Beautiful Bill", would reduce the annual deficit by US$1.4 trillion. While a handful of Republicans in both chambers have voiced opposition to some of the Bill's elements, this Congress has so far not rejected any of the president's legislative priorities. A successful vote to open debate would kick off a lengthy process that could run into Sunday, as Democrats unveil a series of amendments that are unlikely to pass in a chamber Republicans control 53-47. TAX BREAKS, SPENDING CUTS Democrats will focus their firepower with amendments aimed at reversing Republican spending cuts to programs that provide government-backed healthcare to the elderly, poor and disabled, as well as food aid to low-income families. Senate Democratic Leader Chuck Schumer summarised the reasons for his party's opposition to the Bill at a Friday press conference by saying "it has the biggest cuts to food funding ever", and could result in more than 2 million people losing their jobs. He also highlighted the Republican rollback of clean energy initiatives ushered in by the Biden administration. Republican Senate Majority Leader John Thune stressed the tax-cut components during a Friday speech to the Senate. "The centrepiece of our Bill is permanent tax relief for the American people," he said as he showcased legislation that contains a new tax break for senior citizens and other taxpayers. The measure, Thune said, will "help get our economy firing on all cylinders again". It would also raise the Treasury Department's statutory borrowing limit by trillions of dollars to stave off a first default on its debt in the coming months. If the Senate manages to pass Trump's top legislative goal by early next week, the House would be poised to quickly apply the final stamp of approval, sending it to Trump for signing into law. But with Senate Republicans struggling to find enough spending cuts to win the support of the party's far right, Trump on Friday loosened the leash a bit, saying his Jul 4 deadline for wrapping it all up was "important" but "it's not the end-all". Among the most difficult disagreements Senate Republicans struggled to resolve late on Friday was the size of a cap on deductions for state and local taxes and a Medicaid cost-saving that could hobble rural hospitals.
Reuters
3 hours ago
- Business
- Reuters
US Senate Republicans aim to push ahead on Trump's sweeping tax-cut, spending bill
WASHINGTON, June 28 (Reuters) - U.S. Senate Republicans will seek to push President Donald Trump's sweeping tax-cut and spending bill forward on Saturday with a procedural vote that could kick off a marathon weekend session. The bill would extend the 2017 tax cuts that were Trump's main first-term legislative achievement, cut other taxes and boost spending on the military and border security. Nonpartisan analysts estimate a version passed by the House of Representatives last month would add about $3 trillion to the nation's $36.2-trillion government debt. Senate Republicans have been deeply divided over plans to partly offset that bill's heavy hit to the deficit, including by cutting the Medicaid health insurance program for low-income Americans. Republicans are using a legislative maneuver to bypass the Senate's 60-vote threshold to advance most legislation in the 100-member chamber. Their narrow margins in the Senate and House mean they can afford no more than three Republican no votes to advance a bill that Democrats are united in opposing, saying it takes a heavy toll on low- and middle-income Americans to benefit the wealthy. Trump has pushed for Congress to pass the bill by the July 4 Independence Day holiday. The White House said early this month that the legislation, which Trump calls the "One Big Beautiful Bill," would reduce the annual deficit by $1.4 trillion. While a handful of Republicans in both chambers have voiced opposition to some of the bill's elements, this Congress has so far not rejected any of the president's legislative priorities. A successful vote to open debate would kick off a lengthy process that could run into Sunday, as Democrats unveil a series of amendments that are unlikely to pass in a chamber Republicans control 53-47. Democrats will focus their firepower with amendments aimed at reversing Republican spending cuts to programs that provide government-backed healthcare to the elderly, poor and disabled, as well as food aid to low-income families. Senate Democratic Leader Chuck Schumer summarized the reasons for his party's opposition to the bill at a Friday press conference: "It has the biggest cuts to food funding ever" and could result in more than 2 million people losing their jobs, as he highlighted the Republican rollback of clean energy initiatives ushered in by the Biden administration. Republican Senate Majority Leader John Thune stressed the tax-cut components during a Friday speech to the Senate. "The centerpiece of our bill is permanent tax relief for the American people," he said as he showcased legislation that contains a new tax break for senior citizens and other taxpayers. The measure, Thune said, will "help get our economy firing on all cylinders again." It also would raise the Treasury Department's statutory borrowing limit by trillions of dollars to stave off a first-ever default on its debt in coming months. If the Senate manages to pass Trump's top legislative goal by early next week, the House would be poised to quickly apply the final stamp of approval, sending it to Trump for signing into law. But with Senate Republicans struggling to find enough spending cuts to win the support of the party's far right, Trump on Friday loosened the leash a bit, saying his July 4 deadline for wrapping it all up was "important" but "it's not the end-all." Among the most difficult disagreements Senate Republicans struggled to resolve late on Friday was the size of a cap on deductions for state and local taxes and a Medicaid cost-savings that could hobble rural hospitals.
Forbes
4 hours ago
- Business
- Forbes
47 Should Be Worried About 37: Trump Tariffs Hitting A Key Metric Hard
For many years, the U.S. trade deficit increased — but the percentage of U.S. trade that was an ... More export did also. What that meant: Relatively speaking, the United States was exporting more, as a percentage, of total trade. That has changed this year. (From 2003 to 2024, the percentage is based on annual totals. The 2025 figure is based on the first four months of 2025.) Yes, U.S. trade is running at a record pace this year. Yes, that includes record exports. Yes, that includes record imports. Soon enough, we will see how much of that was stockpiling ahead of threatened tariffs from President Trump, in the 47th terms of a U.S. president. But there's one number going in the wrong direction, and I am not talking about the trade deficit. That, too, is of course at a record pace as well through April, according to the latest U.S. Census Bureau data I analyzed. The number I watch, and watch closely despite its seemingly slight movements, is the ratio between exports and total trade. That number stood at 36.75% through April. If U.S. exports stay at 36.75% of total U.S. trade through 2025, it will be the lowest level since ... More 2006, almost two decades ago. The last time the United States finished a year below that was the four years from 2003 through 2006. Not before, to my knowledge, and not since. Hold on, this one might seem a little wonky but the only real concept at play here is this: The ratio of exports to imports is every bit if not more important than the difference between the two. Onward: What's so special about those four years? That was right after China entered the World Trade Organization and unleased its manufacturing might on the United States and the world. But almost every year after that four-year trough, as the Chinese appetite for U.S. exports increased, that percentage moved toward the historical norm of 39.95%. That might not sound like a big difference 36.75% and 39.95% – but when U.S. annual trade is $5.33 trillion, as it was in 2024, a 1% move is equal to $53.3 billion. A move of 3.2% points – in other words, to the average over the last three decades – is equal to $170.56 billion. I can't imagine there's an exporter in this country who wouldn't want at least a little of that action. What happened in the decade after that four-year trough? U.S. exports to China from 2006 to 2016 were larger than to any other country in the world, except Mexico, which was benefitting from the North America Free Trade Agreement. While not growing as much, exports to China were growing faster than those to Mexico. That's because China was starting from a smaller base. U.S. exports to China increased 83.67% compared to 69.39% for Mexico – even with the more difficult logistics involved. The growth in exports – imports from China were also rising rapidly, as was the U.S. deficit with China – showed up in the U.S. percentage of trade with China that was an export. It increased from a rather paltry 15.72% in 2016 to a slightly less paltry 20.01% in 2016. U.S. exports to China, through April, by percentage. While the increasing trade deficit (exports minus imports) represents the strength of American buying power, the percentage of total trade that is an export (exports divided by total trade) represents billions in additional U.S. exports of soybeans, aircraft, medical devices and more. Since 2016, that export ratio has continued to climb. In the nine full years since, it has topped 20% seven times, falling below for only the first two years of Trump's first term. Thus far in 2025, the percentage is 23.81%. That's still well below the average with the world, of course, at just under 40%. And there's no disputing that the high tariffs that Trump put on U.S. imports from China in his first term, tariffs generally left in place by former President Joe Biden, have had an impact on the trade relationship. I have written about how the U.S. deficit with China, five times greater than any other deficit with the world when Trump entered office the first time, is now only 50% greater than that of Mexico. And yet, the U.S. deficit continues to climb, topping $1 trillion six of the last eight years. I have written that China's percentage of U.S. trade dipped to its lowest level in more than two decades. And yet, U.S. trade continues to climb, as other trade partners, Vietnam among them, have continued to grow rapidly. I have written that China has slipped to rank third among U.S. trade partners, after ranking first, that it also fell behind Mexico as an importer into the United States. Trade with Mexico has been robust – and the U.S. deficit with Mexico has swollen as China's has retracted. I have written that that most symbolic of Chinese imports, the cell phone, and its related parts, dipped to their lowest level in two decades. And cell phone imports have remained robust but shifted to India and Vietnam. I have written about what the Trump administration deemed the 'Dirty 15,' those countries with which the United States has its largest trade deficits. Most are both our largest export markets and our allies. For decades, the United States government, albeit begrudgingly, seemed to believe that a focus on U.S. exports would eventually be better than a narrow focus on the trade deficit. While China lags behind most other top trade partners and top large economies in its percentage of trade that is an export, its progress has been unrivaled. Could China have gotten to 30%? What about 40%? Could it still? What would China look like if its economy was able to buy an additional $800 in exports from the United States? Could the United States produce that much? Could it grow enough soybeans? Could Boeing manufacture enough jets? Could U.S. drug makers increase their output sufficiently? Could U.S. automakers, and even foreign automakers building cars in the United States and employing 'blue-collar' Americans, produce enough cars? It would, of course, extend beyond merchandise trade. American brands would be coveted. It would extend to service trade, to hotel chains, to restaurant chains, to movies, to our universities and to increased tourism in the United States. What a boost to the U.S. economy that would be. That view, that a laser-sharp focus on increasing exports would be better than reducing the deficit, is no longer in vogue. And yet, despite all that, our trade has continued to grow, our imports have continued to grow, our exports have continued to grow, albeit more slowly, our trade deficit has continued to grow – and our percentage of trade that is an export has fallen.
CTV News
15 hours ago
- Business
- CTV News
Quebec's deficit will be lower than expected
Quebec Finance Minister Eric Girard responds to the Opposition during Question Period at the Quebec National Assembly, Thursday, April 24, 2025. (Jacques Boissinot/The Canadian Press) Quebec's Finance Ministry says it expects the 2024-2025 deficit will be $3.2 billion less than predicted in the March budget. During the budget announcement, Economy Minister Eric Girard said last year's deficit didn't hit the $11 billion mark it had first projected and was at $10.4 billon. In a new preliminary report released by the Ministry Friday, that number melted down to $7.3 billion for 2024-2025, representing 1.2 per cent of Quebec's GDP. That number takes into account $2.4 billion in payments to the Generations Fund, which is dedicated to repaying Quebec's debt. The exact amount of Quebec's deficit for the 2024-2025 fiscal year will be confirmed in the fall. The ministry attributes the revised numbers to a $2.3 billion decrease in government spending and a 'resilient' provincial economy. 'The financial situation for the 2024-2025 fiscal year has been revised positively thanks to an increase in revenue of nearly $1 billion and a decrease in expenditure growth from 7.7 per cent to 6.2 per cent,' Girard said in a statement. Meanwhile, economic growth was up by 1.3 per cent in 2024, compared to 0.6 per cent in 2023. The Ministry said it noted an increase in tax revenue from personal and corporate income taxes as well as consumption taxes. Hydro-Québec also saw an uptick in revenue. 'This positive revision is the result of measures taken over the past year to ensure more effective and targeted management of spending in order to stay within the allocated budgets,' the ministry said in a news release. Quebec noted it spent more than expected in health and social services, education, families and transportation. It spent less on employment and solidarity, housing and municipal affairs, energy, and the environment. The Coalition Avenir Québec has come under fire over budget choices, including its recent decision to slash $570 million from the education network and refusing to allow schools to run on a deficit. The health-care system also saw its budget slashed as the province tries to eliminate a $1.5-billion deficit in the network, leading to thousands of job cuts. Faced with global economic uncertainty, the government expected an $13 billion deficit for 2025-2026, one of the highest on record for Quebec. But Girard maintains he wants to return to a balanced budget within the next five years, even with American President Donald Trump's rollercoaster trade war. Also on Friday, Trump said he was ending all trade talks with Canada. The president imposed 50 per cent tariffs on aluminum and steel, which impacts Quebec's metal workers. As of March 31, the province's debt is 38.6 per cent of its GDP, which the government says is 0.1 per cent lower than projected in its 2025-2026 budget. In April, Quebec's Standard & Poor's credit was lowered and the company said it did not expect new measures to have any meaningful impact on its standing.
Yahoo
19 hours ago
- Business
- Yahoo
MAGA Senator Mocked for Embarrassing Budget Gaffe
MAGA Senator Tim Scott is being ridiculed after attacking the Congressional Budget Office (CBO) for making 'wrong' predictions decades before it even existed. Scott, who chairs the Senate Banking Committee, posted a video on X attacking the CBO, which recently estimated that 11 million people could lose health care and $2.4 trillion will be added to the deficit under President Donald Trump's 'big, beautiful bill,' which is currently under consideration in the Senate. Scott, who represents South Carolina, claimed the CBO had a long track record of bad predictions. 'In 2017, the CBO said the Tax Cuts and Jobs Act would increase the deficit and the debt by trillions of dollars. What happened? They were wrong,' Scott said. 'Now this is not surprising. They were wrong on the Mellon tax cuts in the 1930s. They were wrong on the Kennedy tax cuts in the 1960s. They were wrong on the Reagan tax cuts in the 1980s. When have they been right? I don't know either.' Scott concludes his message with 'CBO: Wrong, then wrong now.' One major problem: The CBO didn't even exist until 1974, and the nonpartisan agency wasn't operational until 1975. Scott has since been roundly mocked online. Rep. Don Beyer of Virginia responded on X: 'Republicans are attacking Congress' nonpartisan scorekeeper, which found their Big Billionaire Boondoggle rips health care from 16 million people and adds $3 trillion to the deficit. Senator Tim Scott says CBO was 'wrong' in the 1930s and the 1960s … CBO was created in 1974.' 'CBO did not exist until created by an act of Congress in 1974. Why does Tim Scott embarrass himself like this?' former CNN White House correspondent John Harwood wrote. 'CBO was right in 2017, they actually overestimated revenue collection in the 1980s, and they didn't exist in the 1930s or 1960s,' added Marc Goldwein, senior vice president at the Committee for a Responsible Federal Budget. 'Other than that, no notes.' Another X user piled on: 'With Tim Scott, the question has always been whether he knows he's lying or if he just doesn't care.' Scott's office did not immediately respond to a request for comment from The Daily Beast. Trump's One Big Beautiful Bill Act is at risk of being defeated in the upper chamber as some GOP Senators have expressed their opposition to its proposals, including drastic cuts to Medicaid.
