House GOP Pushes Trump’s Tax Cuts Despite Report of Rising Deficit
TL/DR –
House Republicans are seeking to vote on a multi-trillion-dollar tax breaks package, a key legislative priority for President Trump. The package, which is subject to last-minute deal-making amid concerns about the nation’s $36 trillion debt, includes provisions that would increase the federal deficit by $3.8 trillion over a decade and lead to reduced spending on services like Medicaid and food stamps amounting to $1 trillion. The CBO expects the lowest-income U.S. households to see their resources decrease, while highest ones will experience a boost.
House Republicans Push for Vote on Tax Breaks Package
House Republicans are lobbying for a vote on their multi-trillion-dollar tax breaks package as early as Wednesday. This push to hasten the vote is part of an effort to solidify GOP support and fulfill President Donald Trump’s main legislative priority.
The package aims to extend tax breaks approved during Trump’s first term, adding new ones from his 2024 campaign. To make up for lost revenue, Republicans propose cutbacks to federal safety net programs and a significant rollback of green energy tax breaks. It also includes $350 billion in new spending, with about $150 billion allocated to the Pentagon and the rest to Trump’s immigration and border security agenda.
Concerns about the bill’s impact on the nation’s $36 trillion debt have been raised. The Congressional Budget Office (CBO) reported the tax provisions could inflate the federal deficit by $3.8 trillion over the decade.
The proposed legislation, dubbed the “One Big Beautiful Bill Act“, has stipulations for no taxes on tips for certain workers, including those in some service industries; automobile loan interest; or some overtime pay.
The package would also increase the standard income tax deduction to $32,000 for joint filers and raise the child tax credit to $2,500. It proposes an enhanced deduction of $4,000 for seniors of certain income levels to aid in defraying taxes on Social Security income.
However, the bill faces opposition. Democratic Leader Hakeem Jeffries asserted Republicans are rushing the legislation due to its growing unpopularity. The Committee for a Responsible Federal Budget predicts the House bill could add roughly $3.3 trillion to the debt over the next decade.
House Republicans hope to secure the package by Memorial Day, a deadline set by Speaker Mike Johnson. However, the vote’s outcome remains uncertain as the bill must overcome objections within GOP ranks and unified Democratic opposition.
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