Sen. Mark Warner says Trump's tax bill will be a "political albatross" for Republicans
Washington — Sen. Mark Warner, a Virginia Democrat, said Sunday that President Trump's tax bill that's nearing a final vote in the Senate will be a "political albatross" for Republicans, citing the cuts to social safety nets and its projected effect on the national debt.
"I think many of my Republican friends know they're walking the plank on this, and we'll see if those who've expressed quiet consternation will actually have the courage of their conviction," Warner said on "Face the Nation with Margaret Brennan."
The Senate is working through the weekend as the GOP makes a push to pass the legislation, known as the "big, beautiful bill," ahead of a July 4 deadline to get the bill to the president's desk. The House narrowly approved the bill last month, but the Senate has been putting its imprint on the massive package that extends Mr. Trump's 2017 tax cuts and would fund border security, defense and energy production priorities, costs which are offset in part by cuts to healthcare and nutrition programs. The Congressional Budget Office estimated that the legislation would increase the deficit by nearly $3.3 trillion over the next decade.
In addition to the increase to the national debt, Warner criticized the bill for the toll he warned it would take on rural hospitals, access to health insurance, food assistance and clean energy jobs.
The Senate is expected to begin a marathon overnight session Sunday as the bill nears final passage. It would then return to the House for signoff on the upper chamber's changes, before it can go to the president's desk for his signature.
Senate Republicans are working to pass the legislation under the budget reconciliation process, which allows the party in the majority to move ahead without support from across the aisle. The process means Senate Democrats have few mechanisms to combat the bill, which they largely oppose, apart from delaying a vote. Senate Minority Leader Chuck Schumer forced the bill to be read on the floor in its entirety late Saturday, which has pushed back debate on the bill by more than 12 hours.
When asked why Democrats are expected to widely oppose the bill when there are provisions within it that they may see as favorable, such as an expansion of the Child Tax Credit and a provision limiting taxes on tips, Warner said "you can put as much lipstick on this pig as you want."
The Virginia Democrat suggested that the bill could even lose support from Republicans, saying "it's not over until it's over." He added that while Mr. Trump "has been able to hold his party in line in an unprecedented manner," the bill "will come back and bite them."
All but two Republicans voted to advance the measure Saturday in a key test vote. But the GOP win came after hours of hand-wringing over whether a handful of Republicans would prevent the legislation from moving forward. The vote remained open for more than three hours Saturday night as holdouts met with Senate GOP leaders to seek assurances on the bill. And Vice President JD Vance was on hand to break a possible tie vote, though his vote ultimately wasn't needed. He joined a meeting with GOP holdouts in the majority leader's office Saturday night.
Vance's presence at the Capitol came as the White House put pressure on Republicans in Congress to get the legislation to the president's desk. In a Truth Social post Saturday night, Mr. Trump indicated he would work to support primary challenges to one of the bill's opponents, GOP Sen. Thom Tillis of North Carolina, who is up for reelection in 2026.
GOP Rep. Michael McCaul of Texas, who also appeared Sunday on "Face the Nation," said Republicans in the House "know their jobs are at risk" if they oppose the measure, citing pressure from the president and the American people themselves. He said "our base back home will not reelect us to office if we vote no on this."
"Everyone in the House, they know the peril they're in if they vote no on this thing," McCaul said.
The Texas Republicans said he plans to support the measure when it returns to the House due to its funding for border security and defense, along with the tax cut extensions. And he predicted that it will see support even among fiscal hawks who have expressed opposition to the legislation.
"At the end of the day, I think they're going to vote for it," McCaul said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Fed Versus Trump on Tariffs Impact Will Soon Be Put to the Test
(Bloomberg) -- It's a widely held belief among economists that President Donald Trump's tariffs will boost inflation notably over the next few months. But muted price increases so far have called that assumption into question, emboldening the White House and opening up divisions at the Federal Reserve. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sao Paulo Pushes Out Favela Residents, Drug Users to Revive Its City Center Sprawl Is Still Not the Answer Mapping the Architectural History of New York's Chinatown Anticipation of firmer inflation has kept the US central bank from delivering interest-rate cuts this year as it waits to see what happens. The Trump administration is applying intense pressure on Fed Chair Jerome Powell to bring down borrowing costs, and two Fed governors in recent days have publicly diverged from Powell by asserting a cut could be appropriate as soon as July. A pair of key reports in the coming weeks — the monthly jobs report due Thursday and another on consumer prices due July 15 — will be critical in determining the central bank's next steps. Both are expected to finally begin reflecting the impact of tariffs, but any surprises could change the schedule for rate cuts. 'One of the things that makes it such a difficult situation is that we simply haven't done this sort of experiment in the past,' William English, a professor at the Yale School of Management and former high-ranking Fed economist, said of the tariffs. 'We're outside the range of experience for a modern US economy, and so it's very difficult to be confident about any forecast.' Trump and his allies have escalated attacks on the Fed and Powell in recent weeks, motivated by data showing inflation remained tame through May despite the tariffs put in place. The president has lobbed several insults at Powell, calling him a 'numbskull' and 'truly one of the dumbest, and most destructive, people in Government.' Other Trump administration officials and some congressional Republicans — oftentimes more reticent to weigh in on monetary policy — have joined in as well. Kevin Hassett, director of the White House National Economic Council, said on June 23 that there is 'no reason at all for the Fed not to cut rates right now.' Hassett, who is seen as a possible replacement for Powell when the Fed chair's term expires next year, emphasized data due in the coming weeks: 'I would guess that if they see one more month of data, they're going to really have to concede that they've got the rate way too high,' he said. The debate reflects the delicate situation the Fed is in as it aims to avoid a policy mistake. Should officials cut rates just as tariff-induced price pressures kick in, they may have to resort to more aggressive measures later on. But holding rates at an elevated level to combat inflation that never materializes risks restraining the economy unnecessarily, potentially damaging the labor market in the process. Forecasters expect inflation to accelerate in the coming months. Powell told Congress in testimony last week he expects 'meaningful' price increases to materialize in June, July and August data as the levies work their way through the economy. But he added Fed officials are 'perfectly open to the idea' the impact could be smaller than feared, 'and if so, that'll matter for our policy.' The Bureau of Labor Statistics will publish its report on consumer prices for June on July 15, two weeks before the central bank's next policy meeting. Fed Governors Christopher Waller and Michelle Bowman — both Trump appointees — have broken step with Powell and their other colleagues to raise the possibility of a rate cut next month if the data cooperate. 'I think we've got room to bring it down, and then we can kind of see what happens with inflation,' Waller said in a June 20 CNBC interview, adding the central bank could always bring a halt to rate cuts again if necessary. 'We've been on pause for six months to wait and see, and so far the data has been fine.' Still, investors currently see only about a 20% chance of a July move and are instead betting the next cut will come in September, according to federal funds futures. Tariff Math Benign inflation readings through May suggest companies are finding ways, at least for now, to avoid price hikes despite Trump's tariffs on dozens of US trading partners — and widespread uncertainty over how long the duties will last and the level where they'll ultimately settle. One potential explanation is companies are working through inventories of imports they frontloaded in the first quarter to get ahead of the levies, said Josh Hirt, a senior US economist at Vanguard Group. Hirt's calculations suggest that, on average, importers this year have paid an effective tariff rate lower than what Trump has put in place, largely because so much was brought in before they took effect. Another source of uncertainty Powell discussed in his testimony is just how the costs of the tariffs will be split between exporters, importers, retailers, manufacturers and consumers. 'In the beginning, it will be the importer that pays the tariff, but ultimately it will be spread out among those five,' Powell said, adding that data suggests at least some of the impact will fall on consumers. What Bloomberg Economics Says... 'After a brief lull in April and early May, container traffic from China to the US is rising again, with year-to-date import volumes on pace to exceed normal levels at least through summer. If that pace is sustained, US store shelves should be well-stocked at the holiday season. That likely means less need for firms to pass on tariff costs this year.' — Estelle Ou and Andrej Sokol, economists Before the July 15 inflation report comes equally consequential monthly data on employment, due from the BLS on July 3. So far this year, there's been little indication that tariffs have put a dent in hiring, which has allowed the Fed chair and many of his colleagues to maintain that a solid labor market means there's no rush to cut rates. But as with the inflation data, forecasters have largely maintained that any potential labor-market impact of the trade policy upheaval wouldn't be visible before the release of the June figures. In a Bloomberg survey, economists said they expect the this week's report will show the unemployment rate in June crept up to 4.3%, which would mark the highest level since 2021. Bowman, in a June 23 speech, said Fed officials should 'recognize that downside risks to our employment mandate could soon become more salient, given recent softness in spending and signs of fragility in the labor market.' Monthly consumer spending figures published Friday by the Bureau of Economic Analysis showed a drop in outlays in May as households pulled back on discretionary services like travel and dining, and forecasters warned higher prices in the months ahead would put more pressure on consumption. English, at Yale, said the impact of tariffs will depend on factors which are difficult to measure. But 'the kind of intuition that there's going to be some pass-through of the tariffs to prices just feels right,' he said. 'I am not yet thinking that the basic story is wrong.' America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Does a Mamdani Victory and Bezos Blowback Mean Billionaires Beware? ©2025 Bloomberg L.P.
Yahoo
23 minutes ago
- Yahoo
Stock market today: Dow, S&P 500 and Nasdaq futures rise as trade deal hopes lift stocks toward more records
US stock futures climbed on Monday amid signs of progress in trade talks, setting up the major indexes for more all-time highs to end one of the most volatile first halves of a year in recent memory. Dow Jones Industrial Average futures (YM=F) rose 0.5%. Contracts on the S&P 500 (ES=F) also gained roughly 0.5%, while those on the tech-heavy Nasdaq 100 (NQ=F) jumped 0.7%. Stocks are poised to start a holiday-shorted week on a high note, fueled in part by easing fears of a global trade war. On Friday, all three major indexes closed higher, with the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) reaching new record highs for the first time since February — the start of the year's tariff-fueled stock swings. Canada scrapped its digital services tax targeting US technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations. A late-Friday dip in stocks was triggered by Trump's abrupt halt to talks with Canada, citing its digital tax policy. A July 9 deadline looms before the possible resumption of Trump's unilateral tariffs, which Trump on Sunday said he didn't think he'd "need to" extend. India has extended its Washington visit to finalize a deal, and Trump administration officials last week confirmed a trade framework with China was in place, bolstering investor sentiment. Meanwhile, market watchers are closely following Senate negotiations over Trump's proposed $4.5 trillion tax cut bill, as Republican leaders race to persuade party holdouts to back the legislation. The Congressional Budget Office estimates it would add $3.3 trillion to the deficit over a decade, as it stands. The Senate is set to vote on dozens of amendments in a marathon session on Monday. Markets will close at 1 p.m. on Thursday and remain shut on Friday for the Fourth of July. Yahoo Finance's Allie Canal reports: Read more here. Earnings: No notable earnings releases. Economic data: MNI Chicago PMI (June); Dallas Fed manufacturing activity Here are some of the biggest stories you may have missed overnight and early this morning: Warring GOP puts Trump tax bill to marathon Senate vote today Canada scraps digital services tax that Trump slammed Disney's stock has bagged a Jeffries upgrade — here's why Week ahead: Crucial jobs report looms with stocks at records Trump: TikTok buyer group found, needs China's OK Bitcoin soars, altcoins fade in $300 billion crypto shakeout China's economy shows surprising signs of strength Yahoo Finance's Josh Schafer lays out what investors should know about the week ahead: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Hewlett Packard Enterprise Company (HPE) stock rose 6% in premarket trading on Monday following the news that HPE and Juniper Networks have reached an agreement with the US Department of Justice that it will not challenge HPE's acquisition of Juniper. Palantir (PLTR) stock rose 5% before the bell and are trading at an all-time high, up 90% this year. Yahoo Finance Anchor Julie Hyman recently broke down the stock's history on a episode of Market Domination Overtime: Juniper Networks, Inc. (JNPR) stock rose 8% premarket after the DOJ said it would not pursue an investigation into HPE's acquisition of Juniper. As earning season approaches, Goldman Sachs (GS) said on Monday that US profit margins will be tested as investors await to see how President Trump's war has hurt companies. Goldman's David Kostin said Q2 earnings will show the immediate impact of tariffs, which have risen about 10% this year. Most costs will be passed on to consumers, but margins will suffer if firms absorb more than expected. Early results are mixed: General Mills (GIS) stock fell 5% last week due to a weak forecast and tariff warning, while Nike (NKE) rose 15% after announcing it will offset higher duties. Bloomberg News reports: Read more here. European stocks outperformed their US peers by the biggest margin on record in dollar terms during the first half. It's a dramatic sign of how the region's markets are staging a comeback after more than a decade in the doldrums. Bloomberg reports: Read more here. Canada has scrapped its planned digital services tax on US tech firms late on Sunday, just hours before it was due to come into effect. The move aims to revive stalled trade talks with the US, which President Trump suddenly halted on Friday over the tax, calling it a "blatant attack" on American tech companies. US stock futures rose as investors welcomed the news. Benchmark stock indexes in Tokyo and Shanghai also moved higher amid optimism that the US and its top trading partners can hammer out trade deals. Prime Minister Mark Carney and Trump now plan to reach a deal by July 21, Canada's finance ministry said. Trump warned on Friday that he would set new tariffs on Canadian goods within a week, risking fresh tension between the two countries. The White House has set a July 9 deadline for trading partners to broker deals with the US over the sweeping 'reciprocal' tariff rates announced in early April. The 3% tech tax would have hit firms like Apple (AAPL), Google (GOOG), and Amazon (AMZN) starting on Monday. Canada will now bring forward legislation to cancel the tax. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," a statement from the Canadian finance ministry said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Oil prices fell overnight Sunday as global markets adjusted to the easing of tensions in the Middle East, in combination with a commitment from OPEC+ to increase supply in August. Reuters reports: Read more here. Yahoo Finance's Allie Canal reports: Read more here. Earnings: No notable earnings releases. Economic data: MNI Chicago PMI (June); Dallas Fed manufacturing activity Here are some of the biggest stories you may have missed overnight and early this morning: Warring GOP puts Trump tax bill to marathon Senate vote today Canada scraps digital services tax that Trump slammed Disney's stock has bagged a Jeffries upgrade — here's why Week ahead: Crucial jobs report looms with stocks at records Trump: TikTok buyer group found, needs China's OK Bitcoin soars, altcoins fade in $300 billion crypto shakeout China's economy shows surprising signs of strength Yahoo Finance's Josh Schafer lays out what investors should know about the week ahead: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Hewlett Packard Enterprise Company (HPE) stock rose 6% in premarket trading on Monday following the news that HPE and Juniper Networks have reached an agreement with the US Department of Justice that it will not challenge HPE's acquisition of Juniper. Palantir (PLTR) stock rose 5% before the bell and are trading at an all-time high, up 90% this year. Yahoo Finance Anchor Julie Hyman recently broke down the stock's history on a episode of Market Domination Overtime: Juniper Networks, Inc. (JNPR) stock rose 8% premarket after the DOJ said it would not pursue an investigation into HPE's acquisition of Juniper. As earning season approaches, Goldman Sachs (GS) said on Monday that US profit margins will be tested as investors await to see how President Trump's war has hurt companies. Goldman's David Kostin said Q2 earnings will show the immediate impact of tariffs, which have risen about 10% this year. Most costs will be passed on to consumers, but margins will suffer if firms absorb more than expected. Early results are mixed: General Mills (GIS) stock fell 5% last week due to a weak forecast and tariff warning, while Nike (NKE) rose 15% after announcing it will offset higher duties. Bloomberg News reports: Read more here. European stocks outperformed their US peers by the biggest margin on record in dollar terms during the first half. It's a dramatic sign of how the region's markets are staging a comeback after more than a decade in the doldrums. Bloomberg reports: Read more here. Canada has scrapped its planned digital services tax on US tech firms late on Sunday, just hours before it was due to come into effect. The move aims to revive stalled trade talks with the US, which President Trump suddenly halted on Friday over the tax, calling it a "blatant attack" on American tech companies. US stock futures rose as investors welcomed the news. Benchmark stock indexes in Tokyo and Shanghai also moved higher amid optimism that the US and its top trading partners can hammer out trade deals. Prime Minister Mark Carney and Trump now plan to reach a deal by July 21, Canada's finance ministry said. Trump warned on Friday that he would set new tariffs on Canadian goods within a week, risking fresh tension between the two countries. The White House has set a July 9 deadline for trading partners to broker deals with the US over the sweeping 'reciprocal' tariff rates announced in early April. The 3% tech tax would have hit firms like Apple (AAPL), Google (GOOG), and Amazon (AMZN) starting on Monday. Canada will now bring forward legislation to cancel the tax. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," a statement from the Canadian finance ministry said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Oil prices fell overnight Sunday as global markets adjusted to the easing of tensions in the Middle East, in combination with a commitment from OPEC+ to increase supply in August. Reuters reports: Read more here.
CNN
26 minutes ago
- CNN
Warren Buffett donates record $6 billion Berkshire shares
Warren Buffett donated on Friday another $6 billion of Berkshire Hathaway stock to the Gates Foundation and four family charities, his biggest annual donation since he began giving away his fortune nearly two decades ago. The donation of about 12.36 million Berkshire Class B shares boosted Buffett's overall giving to the charities to well over $60 billion. He donated 9.43 million shares to the Gates Foundation; 943,384 shares to the Susan Thompson Buffett Foundation; and 660,366 shares to each of three charities led respectively by his children Howard, Susie, and Peter: the Howard G. Buffett Foundation, Sherwood Foundation and NoVo Foundation. Warren Buffett still owns 13.8% of Berkshire's stock, based on reported shares outstanding. His $152 billion net worth prior to Friday's donations made him the world's fifth-richest person, according to Forbes magazine. Buffett would rank sixth after the donations, which surpassed the $5.3 billion he donated last June. He donated another $1.14 billion to the family charities last November. In a statement, Buffett maintained he does not intend to sell any Berkshire shares. Now 94, Buffett began giving away his fortune in 2006. He changed his will last year, designating 99.5% of his remaining fortune after his death to a charitable trust overseen by his children. They will have about a decade to distribute the money, and must decide where it goes unanimously. Susie Buffett is 71, Howard Buffett is 70, and Peter Buffett is 67. Warren Buffett has led Omaha, Nebraska-based Berkshire since 1965. The $1.05 trillion conglomerate owns close to 200 businesses including Geico car insurance and the BNSF railroad, and dozens of stocks including Apple and American Express. Susie Buffett leads the Susan Thompson Buffett Foundation, which funds reproductive health and is named for her mother, who was Warren Buffett's first wife. The Sherwood Foundation supports Nebraska nonprofits and early childhood education. The Howard G. Buffett Foundation focuses on global hunger, combating human trafficking and mitigating conflicts. The NoVo Foundation has initiatives focused on marginalized girls and women, and on indigenous communities. Buffett said last June that donations to the Gates Foundation would end when he dies.
