Latest news with #TrumpTaxPlan
Al Jazeera
03-07-2025
- Business
- Al Jazeera
Trump rages as rebel House Republicans baulk at backing Big Beautiful Bill
Republicans in the United States House of Representatives have been locked in a dramatic impasse over President Donald Trump's signature tax and spending package, as a rebel group of lawmakers failed to support the bill that all Democratic representatives oppose. The standoff over the Trump administration's flagship domestic policy package, dubbed the One Big Beautiful Bill, stretched into the early hours of Thursday, as the Republican leadership worked furiously to try to persuade holdouts to send the bill to Trump's desk by a Friday, July 4 deadline, US Independence Day, while Trump railed against the rebels on social media. 'For Republicans, this should be an easy yes vote. Ridiculous!' he posted on his Truth Social platform. 'Largest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy. What are the Republicans waiting for?' he added, threatening that 'MAGA is not happy, and it's costing you votes.' Five Republicans voted 'no' in the procedural vote to advance the legislation, while eight have yet to cast a vote. Assuming all Democratic members cast a vote against the bill, Trump can afford to lose only three Republican votes if it is to advance to a final vote. Centrepiece legislation The hefty 800-page bill, the centrepiece of the president's domestic agenda, combines sweeping tax cuts, spending hikes on defence and border security, and cuts to social safety nets into one giant package. But it faces opposition within Trump's Republican Party, with moderate critics expressing concern about its cuts to social safety-net programmes like Medicaid, and conservatives baulking at the trillions it is likely to add to the national debt. Five Republicans voted against the bill: representatives Victoria Spartz of Indiana, Andrew Clyde of Georgia, Keith Self of Texas, Brian Fitzpatrick of Pennsylvania, and Thomas Massie of Kentucky. House Speaker Mike Johnson had summoned lawmakers to Washington for a roll call vote, in a bid to capitalise on the momentum of the bill's passage a day earlier in the Senate and win House approval ahead of the July 4 national holiday. Lawmakers had passed the bill by a 51 to 50 vote in the Republican-controlled chamber on Tuesday, after Vice President JD Vance broke the tie. But the risky gambit to hold the roll call vote swiftly hit hurdles, with some Republican lawmakers resisting the request to rubber stamp the Senate version of the bill so soon after it passed. 'Bad bill to enrich those who are already rich' Johnson said he would keep voting open 'as long as it takes', as senior Republicans attempted to persuade holdouts to support the bill. He said he believed that the Republican holdouts were 'going to come on board', and expected to proceed to a final vote on the legislation in the early hours of Thursday morning, The New York Times reported. As Republicans remain deadlocked, Democrats ramped up their criticisms of the policy package. In a video message posted on social media, Representative Chuy Garcia described the legislation as a 'bad bill to enrich those who are already rich'. It's past midnight in DC and Republicans are still trying to rip healthcare and food from working families to give tax breaks to billionaires. Call your Republican representative and tell them to vote HELL NO — Congressman Chuy García (@RepChuyGarcia) July 3, 2025 So far, 217 House Representatives have voted against advancing the legislation, including five Republicans, while 207 are in favour. Members can change their vote until voting closes, and eight Republicans have yet to vote. The bill needs 218 votes to advance.
The Guardian
01-07-2025
- Business
- The Guardian
What's in Trump's big, beautiful bill? Tax cuts, deportations and more
Senate Republicans on Tuesday passed Donald Trump's massive tax and spending bill after spending all night voting on amendments. The bill, which the GOP has dubbed the One Big Beautiful Bill Act, now returns to the House of Representatives, which passed their version last month, ahead of a Friday deadline the president has imposed for the legislation to be on his desk. Here's what's in the Senate's version of the bill: After taking office in 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers, but generally benefited high earners more than most. Those provisions are set to expire after this year, but the big, beautiful bill makes them permanent, while increasing the standard deduction by $1,000 for individuals, $1,500 for heads of households and $2,000 for married couples, albeit only through 2028. The bill has an array of new tax write-offs – but only while Trump is president. Several of the new exemptions stem from promises Trump made while campaigning last year. Taxpayers will be able to write off income from tips and overtime, and interest made on loans to purchase cars assembled in the United States. People aged 65 and over are eligible for an additional deduction of $6,000, provided their adjusted gross income does not exceed $75,000 for single filers or $150,000 for couples. But all of these incentives expire at the end of 2028, right before Trump's term as president ends. As part of Trump's plan to remove undocumented immigrants from the country, Immigration and Customs Enforcement (Ice) will receive $45bn for detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029. More than $50bn is allocated for the construction of new border fortifications, which will probably include a wall along the border with Mexico. Republicans have attempted to cut down on the bill's cost by slashing two major federal safety net programs: Medicaid, which provides healthcare to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap), which helps people afford groceries. Both are in for funding cuts, as well as new work requirements. The left-leaning Center on Budget and Policy Priorities estimates the Medicaid changes could cost as many as 10.6 million people their healthcare, and about eight million people, or one in five recipients, their Snap benefits. The bill will phase out many tax incentives created by Congress during Joe Biden's presidency meant to encourage consumers and businesses to use electric vehicles and other clean energy technology. Credits for cleaner cars will end this year, as will subsidies for Americans seeking to upgrade their homes to cleaner or more energy efficient appliances. While a draft of the bill targeted wind and solar energy projects with a new excise tax, senators voted to remove that at the last minute. One of the thorniest issues the bill addresses is how much relief to provide from state and local taxes (Salt), which many Americans must also pay in addition to their federal tax. Several House Republicans representing districts in Democrat-led states withheld their support from the bill until the Salt deductibility cap was raised from $10,000 to $40,000, but Senate Republicans made clear they would change that. The Senate's version keeps the $40,000 cap, but only through 2028. The bill will increase the US government's authority to borrow, known as the debt limit, by $5tn. The US treasury secretary, Scott Bessent, has predicted the government will hit the limit by August, at which point it could default on its debt and spark a financial crisis. Wealthier taxpayers appear set to receive more benefits from this bill than poorer ones, according to The Budget Lab at Yale University. Taxpayers in the lowest income quintile will see a 2.5% decrease in their incomes, largely due to the Snap and Medicaid cuts, while the highest earners will see their incomes grow by 2.4%, the Budget Lab estimated. The impact could change based on what amendments the Senate adopts. Despite the GOP's attempts to use the bill as a vehicle to rein in government spending, the bill would increase the deficit by $3.3tn through 2034, according to the non-partisan Congressional Budget Office. Most of that price tag is the extension of the 2017 tax cuts. The heavy budgetary impact could complicate the bill's chances of passing the House, where fiscal hardliners have demanded budget deficit reductions.
The Guardian
01-07-2025
- Business
- The Guardian
What's in Trump's big, beautiful bill? Tax cuts, deportations and more
The Republican-led Senate is on a final sprint to pass the one big beautiful bill, a sprawling piece of legislation that will enact Donald Trump's tax and spending priorities. Lawmakers from both parties are offering last-minute amendments ahead of a final vote on passage that could come Tuesday, after which the legislation will return to the House of Representatives, which passed their version of the bill last month. Here's what's in the Senate's version of the bill: After taking office in 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers, but generally benefited high earners more than most. Those provisions are set to expire after this year, but the big, beautiful bill makes them permanent, while increasing the standard deduction by $1,000 for individuals, $1,500 for heads of households and $2,000 for married couples, albeit only through 2028. The bill has an array of new tax write-offs – but only while Trump is president. Several of the new exemptions stem from promises Trump made while campaigning last year. Taxpayers will be able to write off income from tips and overtime, and interest made on loans to purchase cars assembled in the United States. People aged 65 and over are eligible for an additional deduction of $6,000, provided their adjusted gross income does not exceed $75,000 for single filers or $150,000 for couples. But all of these incentives expire at the end of 2028, right before Trump's term as president ends. As part of Trump's plan to remove undocumented immigrants from the country, Immigration and Customs Enforcement (Ice) will receive $45bn for detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029. More than $50bn is allocated for the construction of new border fortifications, which will probably include a wall along the border with Mexico. Republicans have attempted to cut down on the bill's cost by slashing two major federal safety net programs: Medicaid, which provides healthcare to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap), which helps people afford groceries. Both are in for funding cuts, as well as new work requirements. The left-leaning Center on Budget and Policy Priorities estimates the Medicaid changes could cost as many as 10.6 million people their health care, and about eight million people, or one in five recipients, their Snap benefits. The bill will phase out many tax incentives created by Congress during Joe Biden's presidency meant to encourage consumers and businesses to use electric vehicles and other clean energy technology. Credits for cleaner cars will end this year, as will subsidies for Americans seeking to upgrade their homes to cleaner or more energy efficient appliances. Wind and solar energy projects are targeted with a new excise tax that the American Clean Power Association, an industry group, estimates would hike consumer electricity rates by between 8% and 10%, and cost businesses between $4bn and $7bn by 2036. However, the tax may be modified as part of the ongoing amendment process. One of the thorniest issues the bill addresses is how much relief to provide from state and local taxes (Salt), which many Americans must also pay in addition to their federal tax. Several House Republicans representing districts in Democrat-led states withheld their support from the bill until the Salt deductibility cap was raised from $10,000 to $40,000, but Senate Republicans made clear they would change that. The Senate's version keeps the $40,000 cap, but only through 2028. The bill will increase the US government's authority to borrow, known as the debt limit, by $5tn. The US treasury secretary, Scott Bessent, has predicted the government will hit the limit by August, at which point it could default on its debt and spark a financial crisis. Wealthier taxpayers appear set to receive more benefits from this bill than poorer ones, according to The Budget Lab at Yale University. Taxpayers in the lowest income quintile will see a 2.5% decrease in their incomes, largely due to the Snap and Medicaid cuts, while the highest earners will see their incomes grow by 2.4%, the Budget Lab estimated. The impact could change based on what amendments the Senate adopts. Despite the GOP's attempts to use the bill as a vehicle to rein in government spending, the bill would increase the deficit by $3.3tn through 2034, according to the nonpartisan Congressional Budget Office. Most of that price tag is the extension of the 2017 tax cuts. The heavy budgetary impact could complicate the bill's chances of passing the House, where fiscal hardliners have demanded budget deficit reductions.
CTV News
29-06-2025
- Business
- CTV News
After a dramatic vote, the U.S. Senate pushes ahead on Trump's tax break and spending cut plan
WASHINGTON — Capping a tumultuous night, the Republican-controlled U.S. Senate advanced President Donald Trump's package of tax breaks, spending cuts and increased deportation money, with more weekend work ahead as Congress races to meet his Fourth of July deadline for passage. By a 51-49 tally and with U.S. Vice President JD Vance at the Capitol to break a potential tie, the Senate cleared a key procedural step Saturday as midnight approached. Voting had come to a standstill, dragging for more than three hours, with holdout senators huddling for negotiations and taking private meetings off the Senate floor. In the end, two Republicans opposed the motion to move ahead on Trump's signature domestic policy plan, joining all 47 Democrats. 'Tonight we saw a GREAT VICTORY in the Senate,' Trump said in a social media post afterward. Republicans are using their majorities in Congress to push aside Democratic opposition, but they have run into a series of political and policy setbacks. Not all GOP lawmakers are on board with proposals to reduce spending on Medicaid, food stamps and other programs as a way to help cover the cost of extending some US$3.8 trillion in Trump tax breaks. Trump had lashed out against holdouts, threatening to campaign against one Republican, Sen. Thom Tillis of North Carolina, who had announced he could not support the bill because of Medicaid cuts that he worried would leave many without health care in his state. A new analysis from the nonpartisan Congressional Budget Office said the Senate version of the bill would increase by 11.8 million the number of people without health insurance in 2034. Tillis and Sen. Rand Paul, R-Ky., voted 'no.' Renewed pressure to oppose the 940-page bill came from Elon Musk, who criticized it as 'utterly insane and destructive.' Ahead for senators now will be an all-night debate and amendments. If they are able to pass it, the bill would return to the House for a final round of votes before it could reach the White House. With the narrow Republican majorities in the House and Senate, leaders need almost every lawmaker on board. U.S. Senate Democratic leader Chuck Schumer of New York said Republicans released the bill 'in the dead of night' on Friday and were rushing through before the public fully knew what was in it. He forced a full reading of the text that began late Saturday and continued into Sunday morning. Tax breaks and core GOP priorities At its core, the legislation would make permanent many of the tax breaks from Trump's first term that would otherwise expire by year's end if Congress fails to act, resulting in a potential tax increase on Americans. The bill would add new breaks, including no taxes on tips, and commit $350 billion to national security, including for Trump's mass deportation agenda. But the cutbacks to Medicaid, food stamps and green energy investments are also causing dissent within GOP ranks. Sen. Ron Wyden, D-Ore., said the environmental rollbacks would amount to a 'death sentence' for America's wind and solar industries. The Republicans are relying on the reductions to offset the lost tax revenues but some lawmakers say the cuts go too far, particularly for people receiving health care through Medicaid. Meanwhile, conservatives, worried about the nation's debt, are pushing for steeper cuts. A dramatic roll call As the roll call teetered, attention turned to Sen. Lisa Murkowski, R-Alaska, who was surrounded by GOP leaders in intense conversation. She voted 'yes.' A short time later, Majority Leader John Thune, R-S.D., drew holdouts Sen. Rick Scott of Florida, Mike Lee of Utah and Cynthia Lummis of Wyoming to his office. Vance joined in. The talks dragged on. Then Vance led them all back in to vote. Later, Scott said he had met with the president, adding, 'We all want to get to yes.' Lee said the group 'had an internal discussion about the strategy to achieve more savings and more deficit reduction, and I feel good about the direction where this is going, and more to come.' Republicans revise after setbacks by Senate's arbiter The release of the bill's draft had been delayed as the Senate parliamentarian reviewed the measure to ensure it complied with the chamber's strict 'Byrd Rule,' named for the late Sen. Robert C. Byrd, It largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. Republicans suffered a series of setbacks after several proposals, including shifting food stamp costs from the federal government to the states or gutting the funding structure of the Consumer Financial Protection Bureau, were deemed out of compliance with the rules. But over the past days, Republicans have quickly revised those proposals and reinstated them. The final text includes a proposal for cuts to the Medicaid provider tax that had run into parliamentary hurdles and objections from several senators worried about the fate of rural hospitals. The new version extends the start date for those cuts and establishes a $25 billion fund to aid rural hospitals and providers. Top income-earners would see about a $12,000 tax cut under the House bill, while the package would cost the poorest Americans $1,600, the CBO said. Tussle over SALT The Senate included a compromise over the so-called SALT provision, a deduction for state and local taxes that has been a top priority of lawmakers from New York and other high-tax states, but the issue remains unsettled. The current SALT cap is $10,000 a year, and a handful of Republicans wanted to boost it to $40,000 a year. The final draft includes a $40,000 cap, but limits it for five years. Many Republican senators say that is still too generous, but House Republicans are not fully satisfied either. House Speaker Mike Johnson sent his colleagues home for the weekend with plans to be on call to return to Washington. Associated Press writers Ali Swenson, Fatima Hussein, Michelle L. Price and Matthew Daly contributed to this report. Lisa Mascaro, Kevin Freking And Joey Cappelletti, The Associated Press
Yahoo
29-06-2025
- Business
- Yahoo
After a dramatic vote, the Senate pushes ahead on Trump's tax break and spending cut plan
WASHINGTON (AP) — Capping a tumultuous night, the Republican-controlled Senate advanced President Donald Trump's package of tax breaks, spending cuts and increased deportation money, with more weekend work ahead as Congress races to meet his Fourth of July deadline for passage. By a 51-49 tally and with Vice President JD Vance at the Capitol to break a potential tie, the Senate cleared a key procedural step Saturday as midnight approached. Voting had come to a standstill, dragging for more than three hours, with holdout senators huddling for negotiations and taking private meetings off the Senate floor. In the end, two Republicans opposed the motion to move ahead on Trump's signature domestic policy plan, joining all 47 Democrats. 'Tonight we saw a GREAT VICTORY in the Senate,' Trump said in a social media post afterward. Republicans are using their majorities in Congress to push aside Democratic opposition, but they have run into a series of political and policy setbacks. Not all GOP lawmakers are on board with proposals to reduce spending on Medicaid, food stamps and other programs as a way to help cover the cost of extending some $3.8 trillion in Trump tax breaks. Trump had lashed out against holdouts, threatening to campaign against one Republican, Sen. Thom Tillis of North Carolina, who had announced he could not support the bill because of Medicaid cuts that he worried would leave many without health care in his state. A new analysis from the nonpartisan Congressional Budget Office said the Senate version of the bill would increase by 11.8 million the number of people without health insurance in 2034. Tillis and Sen. Rand Paul, R-Ky., voted 'no.' Renewed pressure to oppose the 940-page bill came from Elon Musk, who criticized it as 'utterly insane and destructive.' Ahead for senators now will be an all-night debate and amendments. If they are able to pass it, the bill would return to the House for a final round of votes before it could reach the White House. With the narrow Republican majorities in the House and Senate, leaders need almost every lawmaker on board. Senate Democratic leader Chuck Schumer of New York said Republicans released the bill 'in the dead of night' on Friday and were rushing through before the public fully knew what was in it. He forced a full reading of the text that began late Saturday and continued into Sunday morning. Tax breaks and core GOP priorities At its core, the legislation would make permanent many of the tax breaks from Trump's first term that would otherwise expire by year's end if Congress fails to act, resulting in a potential tax increase on Americans. The bill would add new breaks, including no taxes on tips, and commit $350 billion to national security, including for Trump's mass deportation agenda. But the cutbacks to Medicaid, food stamps and green energy investments are also causing dissent within GOP ranks. Sen. Ron Wyden, D-Ore., said the environmental rollbacks would amount to a "death sentence' for America's wind and solar industries. The Republicans are relying on the reductions to offset the lost tax revenues but some lawmakers say the cuts go too far, particularly for people receiving health care through Medicaid. Meanwhile, conservatives, worried about the nation's debt, are pushing for steeper cuts. A dramatic roll call As the roll call teetered, attention turned to Sen. Lisa Murkowski, R-Alaska, who was surrounded by GOP leaders in intense conversation. She voted 'yes.' A short time later, Majority Leader John Thune, R-S.D., drew holdouts Sen. Rick Scott of Florida, Mike Lee of Utah and Cynthia Lummis of Wyoming to his office. Vance joined in. The talks dragged on. Then Vance led them all back in to vote. Later, Scott said he had met with the president, adding, 'We all want to get to yes.' Lee said the group "had an internal discussion about the strategy to achieve more savings and more deficit reduction, and I feel good about the direction where this is going, and more to come.' Republicans revise after setbacks by Senate's arbiter The release of the bill's draft had been delayed as the Senate parliamentarian reviewed the measure to ensure it complied with the chamber's strict 'Byrd Rule,' named for the late Sen. Robert C. Byrd, It largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. Republicans suffered a series of setbacks after several proposals, including shifting food stamp costs from the federal government to the states or gutting the funding structure of the Consumer Financial Protection Bureau, were deemed out of compliance with the rules. But over the past days, Republicans have quickly revised those proposals and reinstated them. The final text includes a proposal for cuts to the Medicaid provider tax that had run into parliamentary hurdles and objections from several senators worried about the fate of rural hospitals. The new version extends the start date for those cuts and establishes a $25 billion fund to aid rural hospitals and providers. Top income-earners would see about a $12,000 tax cut under the House bill, while the package would cost the poorest Americans $1,600, the CBO said. Tussle over SALT The Senate included a compromise over the so-called SALT provision, a deduction for state and local taxes that has been a top priority of lawmakers from New York and other high-tax states, but the issue remains unsettled. The current SALT cap is $10,000 a year, and a handful of Republicans wanted to boost it to $40,000 a year. The final draft includes a $40,000 cap, but limits it for five years. Many Republican senators say that is still too generous, but House Republicans are not fully satisfied either. House Speaker Mike Johnson sent his colleagues home for the weekend with plans to be on call to return to Washington. ___ Associated Press writers Ali Swenson, Fatima Hussein, Michelle L. Price and Matthew Daly contributed to this report.
