Latest news with #House-approved
The Hill
2 hours ago
- Business
- The Hill
Rand Paul, Mike Lee back Elon Musk over Trump-backed bill: ‘We can and must do better'
Republican Sens. Rand Paul (Ky.) and Mike Lee (Utah) are backing tech billionaire Elon Musk's criticism of the House-approved version of President Trump's agenda-setting megabill as it heads to the upper chamber for vetting. 'We can and must do better,' Paul wrote on the social platform X on Tuesday in response to Musk's post that slammed the so-called 'One Big, Beautiful Bill Act' as a 'disgusting abomination.' Lee also chimed in writing, 'The Senate must make this bill better,' in a reply to Musk. Musk's blistering critique of the measure touted by Trump and House Republican leaders comes just days after the end of Musk's White House role as a special adviser on government spending and de facto head of the Trump administration's Department of Government Efficiency (DOGE). 'I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination,' Musk wrote on X, the platform that he runs. 'Shame on those who voted for it: you know you did wrong. You know it.' The massive tax and spending legislation would extend Trump's 2017 tax cuts and boost funding for border and defense priorities, while slashing spending on social safety net programs like Medicaid and food assistance. It narrowly passed the GOP-controlled House in May and is now up for Senate review. But Paul and other senators already have highlighted projections that it would add nearly $4 trillion to the national debt. Musk voiced tepid disapproval of the measure in a 'CBS Sunday Morning' interview over the weekend and said it 'it undermines the work that the DOGE team is doing.' 'I think a bill can be big, or it could be beautiful,' Musk said in the interview. 'I don't know if it could be both — my personal opinion.' But the more forceful rebuke marked a turn in his criticism and defense of his efforts to curb government waste. 'It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt,' he wrote in a follow-up post on Tuesday. But the White House dismissed the criticism from Musk, who was a top donor to Trump's reelection campaign last fall. 'The president already knows where Elon Musk stood on this bill,' White House press secretary Karoline Leavitt told reporters during Tuesday's press briefing. 'It doesn't change his opinion.' Trump lashed out at Paul on Truth Social earlier Tuesday, accusing the Kentucky lawmaker of voting 'NO on everything' and 'never' having 'practical or constructive ideas.'
Yahoo
3 hours ago
- Business
- Yahoo
Axelrod: Ernst response to Medicaid remarks ‘insensitive,' ‘politically stupid'
Veteran political strategist David Axelrod knocked Sen. Joni Ernst (R-Iowa) on Monday for her sarcastic video response to backlash she faced over remarks about Medicaid cuts and death during a town hall last week. 'It was really insensitive of her to put that video up and politically stupid,' Axelrod said in a panel discussion with CNN's Jake Tapper. Ernst, a military veteran who has been in the Senate for more than a decade, posted a mock apology video on Instagram that showed her walking through a cemetery and discussing the backlash she faced from telling the Butler, Iowa crowd a day earlier, 'Well, we're all going to die' when an attendee yelled that people would die because of the Medicaid cuts in the House-approved version of President Trump's agenda-setting 'One Big, Beautiful Bill.' 'I made an incorrect assumption that everyone in the auditorium understood that, yes, we are all going to perish from this earth,' Ernst said in the video. 'So I apologize, and I'm really, really glad that I did not have to bring up the subject of the tooth fairy as well.' Axelrod, a chief political analyst at CNN and podcast host who was a top adviser to former President Obama, said Ernst 'probably could have gotten away' with her initial comments at the town hall as she made the case that the proposed Medicaid cuts are directed at people who should not receive benefits, including undocumented migrants and able-bodied adults who are not seeking employment. 'But putting up that spot the next day …' Axelrod said. 'When you take 10, you know, seven, eight, nine million people off of Medicaid, there will be people who will die. There will be people who are affected.' Conservative political commentator Scott Jennings, who also appeared on the panel, agreed that Ernst's video was not wise but said her initial message was sound. 'She had it right in the town hall meeting, and then she deviated at the end,' Jennings said. 'I wouldn't have posted the follow-up video myself, but I think the Republicans can actually win this debate.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
6 hours ago
- Business
- The Hill
Axelrod: Ernst response to Medicaid remarks ‘insensitive,' ‘politically stupid'
Veteran political strategist David Axelrod knocked Sen. Joni Ernst (R-Iowa) on Monday for her sarcastic video response to backlash she faced over remarks about Medicaid cuts and death during a town hall last week. 'It was really insensitive of her to put that video up and politically stupid,' Axelrod said in a panel discussion with CNN's Jake Tapper. Ernst, a military veteran who has been in the Senate for more than a decade, posted a mock apology video on Instagram that showed her walking through a cemetery and discussing the backlash she faced from telling the Butler, Iowa crowd a day earlier, ' Well, we're all going to die ' when an attendee yelled that people would die because of the Medicaid cuts in the House-approved version of President Trump's agenda-setting ' One Big, Beautiful Bill.' 'I made an incorrect assumption that everyone in the auditorium understood that, yes, we are all going to perish from this earth,' Ernst said in the video. 'So I apologize, and I'm really, really glad that I did not have to bring up the subject of the tooth fairy as well.' Axelrod, a chief political analyst at CNN and podcast host who was a top adviser to former President Obama, said Ernst 'probably could have gotten away' with her initial comments at the town hall as she made the case that the proposed Medicaid cuts are directed at people who should not receive benefits, including undocumented migrants and able-bodied adults who are not seeking employment. 'But putting up that spot the next day …' Axelrod said. 'When you take 10, you know, seven, eight, nine million people off of Medicaid, there will be people who will die. There will be people who are affected.' Conservative political commentator Scott Jennings, who also appeared on the panel, agreed that Ernst's video was not wise but said her initial message was sound. 'She had it right in the town hall meeting, and then she deviated at the end,' Jennings said. 'I wouldn't have posted the follow-up video myself, but I think the Republicans can actually win this debate.'
CNBC
a day ago
- Business
- CNBC
Child tax credit debate could get 'really interesting' as Senate weighs Trump's mega-bill, expert says
As the Senate debates President Donald Trump's multi-trillion-dollar tax and spending package, there could be changes to the child tax credit, policy experts say. If enacted as drafted, the House-approved bill would make permanent the maximum $2,000 credit passed via Trump's 2017 tax cuts — which could otherwise revert to $1,000 after 2025 without action from Congress. The highest credit would also rise to $2,500 from 2025 to 2028. After that, the credit's top value would revert to $2,000 and be indexed for inflation. But the Senate could have different plans, and negotiations will be "really interesting to watch," said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center. More from Personal Finance:House Republican budget bill boosts maximum child tax credit to $2,500 What the House Republican budget bill means for your moneyWhy baby bonds and child tax credits can't convince Americans to have kids The proposed higher child tax credit comes as the U.S. fertility rate hovers near historic lows, which has been a concern for lawmakers, including the Trump administration. Some research suggests financial incentives, like a bigger child tax credit, could boost U.S. fertility. But other experts say it won't solve the issue long-term. As the Senate prepares to debate Trump's mega-bill, here's how the child tax credit could change. While Democrats have long pushed for a child tax credit expansion, there has also been a more recent bipartisan push for changes. Vice President JD Vance, who formerly served as Senator of Ohio, floated a higher child tax credit during the campaign in August. "I'd love to see a child tax credit that's $5,000 per child. But you, of course, have to work with Congress to see how possible and viable that is," he told CBS' "Face the Nation." Sen. Josh Hawley, R-Mo., in January also called on the Senate floor for a $5,000 child tax credit. His proposal would apply the credit to payroll taxes and provide advance payments throughout the year. "There's some recognition here that they need do a little more," Gleckman said. Often, tax credits don't benefit the lowest earners unless they are "refundable," meaning filers can still claim without taxes owed. Nonrefundable credits can lock out those consumers because they often don't have tax liability. House lawmakers in January 2024 passed a bipartisan child tax credit expansion, which would have improved access and retroactively boosted the refundable portion. While the bill failed in the Senate in August, Republicans said they would revisit the measure. However, the child tax credit in the latest House-approved bill is less generous than the provision passed in 2024, policy experts say. As written, the House plan provides no additional benefit to 17 million children from low-income families who can't claim the full $2,000 credit, Margot Crandall-Hollick, principal research associate at the Urban-Brookings Tax Policy Center, wrote in May.
Time of India
2 days ago
- Business
- Time of India
‘Work of fiction…': Will Donald Trump bury US government in debt with multitrillion-dollar tax breaks? Even Elon Musk is concerned
The House-approved tax and spending reductions may increase the national debt by over $5 trillion during the next ten years if maintained. (AI image) US President Donald Trump is not finding it easy to convince multiple stakeholders, including the Republican senators and international investors that his 'One Big Beautiful Bill' won't bury the US government in a huge pile of debt. So much so that one of his biggest supporters, Tesla CEO Elon Musk , has also expressed concerns about the impact of the multitrillion-dollar tax breaks package. Financial markets have responded with doubt, even as the Donald Trump administration continues to struggle to demonstrate effective deficit reduction strategies. "All of this rhetoric about cutting trillions of dollars of spending has come to nothing — and the tax bill codifies that," said Michael Strain, director of economic policy studies at the American Enterprise Institute, a right-leaning think tank, according to an Associated Press report. "There is a level of concern about the competence of Congress and this administration and that makes adding a whole bunch of money to the deficit riskier. " The Trump administration has responded aggressively towards critics expressing worry about increasing debt under the new US President's leadership, despite evidence of rising debt levels following his 2017 tax reductions during his first presidential term. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Truque caseiro noturno eficaz contra a papada (faça hoje mesmo) Revista & Saúde Saiba Mais Undo What White House and Donald Trump have said White House Press Secretary Karoline Leavitt in her briefing earlier this week attempted to address what she termed as inaccurate assertions regarding the tax reductions. Leavitt criticised the assessment that the 'One, Big, Beautiful Bill' would increase the deficit, dismissing the Congressional Budget Office's analysis and other evaluators' projections, stating they employ unreliable assumptions and have consistently failed at forecasting across both Democratic and Republican administrations. Also Read | 'Went COLD TURKEY, it was devastating for them…': Donald Trump slams China for 'violating' trade agreement with US - what went wrong this time? However, Trump's own statements have indicated that the insufficient spending reductions to balance his tax cuts were a result of maintaining unity within the Republican congressional group. "We have to get a lot of votes," Trump stated last week. "We can't be cutting." The Trump administration seems to fervently be relying on economic growth as the primary solution, a strategy that receives limited support outside Trump's immediate circle. The White House Council of Economic Advisers believes that their policies will generate substantial growth, leading to reduced annual budget deficits in proportion to the overall economy, thereby establishing fiscal sustainability for the US government. The council projects economic growth averaging 3.2% annually over the next four years, contrasting with the Congressional Budget Office's 1.9% forecast, and estimates creating or preserving up to 7.4 million jobs. Most economic experts regard the non-partisan CBO as the authoritative source for policy assessment, though it doesn't evaluate costs for executive branch actions, such as Trump's independent tariff decisions. Elon Musk's apprehensions & disappointment Expressing his concerns, technology magnate Elon Musk, who previously served in Trump's close circle as the head of the Department of Government Efficiency, shared his views with CBS News: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing." Soon after his take on the 'One Big Beautiful Bill', Musk also announced his exit from Trump's Department of Government Efficiency. In an official statement, Musk conveyed his appreciation to Trump for the chance to head DOGE, stating, "As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending. The DOGE mission will only strengthen over time as it becomes a way of life throughout the government. " Also Read | 'Even if we lose…': Donald Trump administration readying two-part strategy to impose reciprocal tariffs, says 'we will do it another way Rising US national debt The House-approved tax and spending reductions would increase the national debt by over $5 trillion during the next ten years if maintained, according to analysis from the Committee for a Responsible Financial Budget, an organisation monitoring fiscal responsibility. The legislation employs a strategy of setting expiration dates for various components to artificially reduce its apparent cost. This approach mirrors the strategy used in the 2017 tax reductions, which has created the current situation where numerous tax cuts will expire in 2024 without Congressional renewal. The debt situation has significantly worsened compared to eight years prior. With total debt exceeding £36.1 trillion, investors now require higher returns on government borrowing. The 10-year Treasury Note currently yields approximately 4.5%, a substantial increase from the 2.5% rate that prevailed when the 2017 tax legislation was enacted. 'Work of fiction' External economic analysts anticipate that increased debt levels would maintain elevated interest rates and dampen overall economic expansion, as borrowing costs would rise for housing, vehicles, commercial ventures and educational financing. "This just adds to the problem future policymakers are going to face," said Brendan Duke, a former Biden administration aide now at the Center on Budget and Policy Priorities, a liberal think tank according to the AP report. Duke said that with the tax cuts in the bill set to expire in 2028, lawmakers would be "dealing with Social Security, Medicare and expiring tax cuts at the same time." The Penn Wharton Budget Model's faculty director, Kent Smetters, dismissed the growth forecasts from Trump's economic advisers as unrealistic and a 'work of fiction'. He indicated that the legislation could encourage some employees to reduce their working hours to become eligible for Medicaid. "I don't know of any serious forecaster that has meaningfully raised their growth forecast because of this legislation," said Harvard University professor Jason Furman, who was the Council of Economic Advisers chair under the Obama administration. "These are mostly not growth- and competitiveness-oriented tax cuts. And, in fact, the higher long-term interest rates will go the other way and hurt growth.' Also Read | 'Way better to take 25% tariff hit…': Apple exports 2.9 million iPhones from India to US despite Trump's pressure; China sees big fall Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
