Latest news with #US3.4
West Australian
a day ago
- Politics
- West Australian
Elon Musk launches ‘America Party' after dramatic fallout with Trump over US spending bill
Billionaire Elon Musk says he is launching a new political party, dubbed the America Party, in a direct response to what he describes as the failure of both major US parties to curb reckless government spending. 'By a factor of 2 to 1, you want a new political party, and you shall have it!' Mr Musk wrote on Saturday on his social media platform X, referring to a poll he conducted among his followers. Sixty-five per cent of respondents voted in favour of forming a new party. 'When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,' Mr Musk said. 'Today, the America Party is formed to give you back your freedom.' The Tesla and SpaceX CEO did not provide further details on the structure, platform, or leadership of the new party, nor did he indicate whether he intended to run for office himself. The announcement follows a weeks-long public feud between Mr Musk and US President Donald Trump, centred on the passage of a controversial tax and spending bill, reported. The nearly 900-page legislation was narrowly approved by the Senate on Thursday and signed into law by Mr Trump on Friday, coinciding with the July 4 Independence Day holiday. Mr Musk had previously lobbied Republican lawmakers to vote against the bill, describing it as 'utterly insane and destructive.' The legislation is expected to add an estimated $US3.4 trillion to the national deficit over the next decade. 'This is debt slavery,' Mr Musk wrote last week, warning that Republican members who supported the bill would face primary challenges, with his financial and political backing. 'They will lose their primary next year if it is the last thing I do on this Earth,' he posted. 'Time for a new political party that actually cares about the people.' On Friday, ahead of the vote, Mr Musk posed a question to his 180 million followers on X: 'Should we create the America Party?' The poll drew millions of responses, with a significant majority in favour. He suggested the party could initially focus its efforts on two or three Senate races and up to ten House districts. 'Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people,' he wrote. While Mr Musk's political ambitions have long been a topic of speculation, this marks his most explicit move toward forming an organised political movement. He previously served briefly in Trump's Administration as head of the Department of Government Efficiency (DOGE), before exiting in May. In response to Mr Musk's criticism of the bill and his threat to launch a competing political party, Mr Trump suggested that the billionaire could face personal consequences. Asked whether he would consider deporting Mr Musk, who was born in South Africa and became a US citizen in 2002. Mr Trump said, 'We'll have to take a look.' He also hinted that federal funding for Mr Musk's companies could come under review. The announcement of the America Party adds a new wildcard to the 2026 midterm election landscape and comes at a time of growing voter dissatisfaction with the traditional two-party system.
The Advertiser
3 days ago
- Business
- The Advertiser
Stocks dip, dollar slumps as Trump deal deadline looms
Stocks have slipped despite record highs for Wall Street overnight as US President Donald Trump's deadline for trade deals looms. The dollar retraced some of Thursday's gains with US markets already shut for the holiday-shortened week as traders considered the impact of the sweeping spending bill that Trump is expected to sign into law later in the day. The pan-European STOXX 600 index fell 0.6 per cent on Friday, driven in part by losses on spirits makers such as Pernod Ricard and Remy Cointreau after China said it would impose duties of up to 34.9 per cent on brandy from the European Union starting July 5. US S&P 500 futures edged down 0.5 per cent following a 0.8 per cent overnight advance for the cash index to a fresh record closing peak. Wall Street is closed on Friday for the Independence Day holiday. Trump said Washington would start sending letters to countries on Friday specifying what tariff rates they would face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply. Investors were "now just waiting for July 9", said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea. At the same time, Thursday's jobs data showed "the US economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better" from here, Sycamore said. Investors cheered the surprisingly robust jobs report on Thursday, sending all three of the main US equity indexes climbing in a shortened session. Following the close, the House narrowly approved Trump's signature, 869-page bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion debt, according to the non-partisan Congressional Budget Office. Trump said he expected "a couple" more trade agreements after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far. US Treasury Secretary Scott Bessent said earlier this week that a deal with India was close. However, agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appear to have broken down. The US dollar rallied overnight, taking it up as much as 0.7 per cent versus a basket of major peers after the robust payrolls data saw traders take any expectations for a Federal Reserve interest rate cut in July off the table. It ended Thursday with a 0.4 per cent rise. On Friday, the US currency gave back a little of those gains, slumping 0.4 per cent to 144.31 yen and sliding 0.2 per cent to 0.7936 Swiss franc. The euro added 0.2 per cent to $US1.1773, while sterling held steady at $US1.3662. The US Treasury bond market is closed on Friday for the holiday, but 10-year yields rose 4.7 basis points to 4.34 per cent while the two-year yield jumped 9.3 bps to 3.882 per cent. Gold firmed 0.4 per cent to $US3,339 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the US's fiscal position and tariffs. Brent crude futures fell seven cents to $US68.73 a barrel, while US West Texas Intermediate crude was last seen flat at $US67.02. Stocks have slipped despite record highs for Wall Street overnight as US President Donald Trump's deadline for trade deals looms. The dollar retraced some of Thursday's gains with US markets already shut for the holiday-shortened week as traders considered the impact of the sweeping spending bill that Trump is expected to sign into law later in the day. The pan-European STOXX 600 index fell 0.6 per cent on Friday, driven in part by losses on spirits makers such as Pernod Ricard and Remy Cointreau after China said it would impose duties of up to 34.9 per cent on brandy from the European Union starting July 5. US S&P 500 futures edged down 0.5 per cent following a 0.8 per cent overnight advance for the cash index to a fresh record closing peak. Wall Street is closed on Friday for the Independence Day holiday. Trump said Washington would start sending letters to countries on Friday specifying what tariff rates they would face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply. Investors were "now just waiting for July 9", said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea. At the same time, Thursday's jobs data showed "the US economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better" from here, Sycamore said. Investors cheered the surprisingly robust jobs report on Thursday, sending all three of the main US equity indexes climbing in a shortened session. Following the close, the House narrowly approved Trump's signature, 869-page bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion debt, according to the non-partisan Congressional Budget Office. Trump said he expected "a couple" more trade agreements after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far. US Treasury Secretary Scott Bessent said earlier this week that a deal with India was close. However, agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appear to have broken down. The US dollar rallied overnight, taking it up as much as 0.7 per cent versus a basket of major peers after the robust payrolls data saw traders take any expectations for a Federal Reserve interest rate cut in July off the table. It ended Thursday with a 0.4 per cent rise. On Friday, the US currency gave back a little of those gains, slumping 0.4 per cent to 144.31 yen and sliding 0.2 per cent to 0.7936 Swiss franc. The euro added 0.2 per cent to $US1.1773, while sterling held steady at $US1.3662. The US Treasury bond market is closed on Friday for the holiday, but 10-year yields rose 4.7 basis points to 4.34 per cent while the two-year yield jumped 9.3 bps to 3.882 per cent. Gold firmed 0.4 per cent to $US3,339 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the US's fiscal position and tariffs. Brent crude futures fell seven cents to $US68.73 a barrel, while US West Texas Intermediate crude was last seen flat at $US67.02. Stocks have slipped despite record highs for Wall Street overnight as US President Donald Trump's deadline for trade deals looms. The dollar retraced some of Thursday's gains with US markets already shut for the holiday-shortened week as traders considered the impact of the sweeping spending bill that Trump is expected to sign into law later in the day. The pan-European STOXX 600 index fell 0.6 per cent on Friday, driven in part by losses on spirits makers such as Pernod Ricard and Remy Cointreau after China said it would impose duties of up to 34.9 per cent on brandy from the European Union starting July 5. US S&P 500 futures edged down 0.5 per cent following a 0.8 per cent overnight advance for the cash index to a fresh record closing peak. Wall Street is closed on Friday for the Independence Day holiday. Trump said Washington would start sending letters to countries on Friday specifying what tariff rates they would face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply. Investors were "now just waiting for July 9", said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea. At the same time, Thursday's jobs data showed "the US economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better" from here, Sycamore said. Investors cheered the surprisingly robust jobs report on Thursday, sending all three of the main US equity indexes climbing in a shortened session. Following the close, the House narrowly approved Trump's signature, 869-page bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion debt, according to the non-partisan Congressional Budget Office. Trump said he expected "a couple" more trade agreements after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far. US Treasury Secretary Scott Bessent said earlier this week that a deal with India was close. However, agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appear to have broken down. The US dollar rallied overnight, taking it up as much as 0.7 per cent versus a basket of major peers after the robust payrolls data saw traders take any expectations for a Federal Reserve interest rate cut in July off the table. It ended Thursday with a 0.4 per cent rise. On Friday, the US currency gave back a little of those gains, slumping 0.4 per cent to 144.31 yen and sliding 0.2 per cent to 0.7936 Swiss franc. The euro added 0.2 per cent to $US1.1773, while sterling held steady at $US1.3662. The US Treasury bond market is closed on Friday for the holiday, but 10-year yields rose 4.7 basis points to 4.34 per cent while the two-year yield jumped 9.3 bps to 3.882 per cent. Gold firmed 0.4 per cent to $US3,339 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the US's fiscal position and tariffs. Brent crude futures fell seven cents to $US68.73 a barrel, while US West Texas Intermediate crude was last seen flat at $US67.02. Stocks have slipped despite record highs for Wall Street overnight as US President Donald Trump's deadline for trade deals looms. The dollar retraced some of Thursday's gains with US markets already shut for the holiday-shortened week as traders considered the impact of the sweeping spending bill that Trump is expected to sign into law later in the day. The pan-European STOXX 600 index fell 0.6 per cent on Friday, driven in part by losses on spirits makers such as Pernod Ricard and Remy Cointreau after China said it would impose duties of up to 34.9 per cent on brandy from the European Union starting July 5. US S&P 500 futures edged down 0.5 per cent following a 0.8 per cent overnight advance for the cash index to a fresh record closing peak. Wall Street is closed on Friday for the Independence Day holiday. Trump said Washington would start sending letters to countries on Friday specifying what tariff rates they would face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply. Investors were "now just waiting for July 9", said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea. At the same time, Thursday's jobs data showed "the US economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better" from here, Sycamore said. Investors cheered the surprisingly robust jobs report on Thursday, sending all three of the main US equity indexes climbing in a shortened session. Following the close, the House narrowly approved Trump's signature, 869-page bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion debt, according to the non-partisan Congressional Budget Office. Trump said he expected "a couple" more trade agreements after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far. US Treasury Secretary Scott Bessent said earlier this week that a deal with India was close. However, agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appear to have broken down. The US dollar rallied overnight, taking it up as much as 0.7 per cent versus a basket of major peers after the robust payrolls data saw traders take any expectations for a Federal Reserve interest rate cut in July off the table. It ended Thursday with a 0.4 per cent rise. On Friday, the US currency gave back a little of those gains, slumping 0.4 per cent to 144.31 yen and sliding 0.2 per cent to 0.7936 Swiss franc. The euro added 0.2 per cent to $US1.1773, while sterling held steady at $US1.3662. The US Treasury bond market is closed on Friday for the holiday, but 10-year yields rose 4.7 basis points to 4.34 per cent while the two-year yield jumped 9.3 bps to 3.882 per cent. Gold firmed 0.4 per cent to $US3,339 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the US's fiscal position and tariffs. Brent crude futures fell seven cents to $US68.73 a barrel, while US West Texas Intermediate crude was last seen flat at $US67.02.
The Advertiser
4 days ago
- Business
- The Advertiser
Congress approves Trump sweeping tax-cut, spending bill
President Donald Trump's tax-cut package has cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. It also cuts health and food safety net programs and zeroes out dozens of green energy incentives. It would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) debt, according to the nonpartisan Congressional Budget Office. Despite concerns over the 869-page bill's price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House's 220 Republicans voting against it. The bill has already cleared the Republican-controlled Senate by the narrowest possible margin. Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth. Republican Representative Virginia Foxx of North Carolina described the bill as bringing: "Historic tax relief for working families. Massive investment to secure our nation's borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently." Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires," House Democratic Leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber's history. Trump kept up the pressure throughout, cajoling and threatening Congress as he pressed them to send him the legislation by the July 4 Independence Day holiday. "FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!" he wrote on social media. Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate. The bill passed the Senate on Tuesday in 51-50 vote in that saw Vice President JD Vance cast the tie-breaking vote. According to the CBO, the bill would lower tax revenues by $US4.5 trillion ($A6.9 trillion) over 10 years and cut spending by $US1.1 trillion ($A1.7 trillion). Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans. The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments - changes that would leave nearly 12 million people uninsured, according to the CBO. Republicans added $US50 billion ($A76 billion) for rural health providers to address concerns that those cutbacks would force them out of business. Nonpartisan analysts have found that the wealthiest Americans would see the biggest benefits from the bill, while lower-income people would effectively see their incomes drop as the safety-net cuts would outweigh their tax cuts. The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say. Ratings firm Moody's downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US Treasury bonds less attractive. On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Trump's 2017 individual and business tax cuts were due to expire. Those cuts are now made permanent, while tax breaks for parents and businesses are expanded. The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Trump campaign promises. The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than an initial version that passed the House in May. During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a "retaliatory tax" on foreign investment that had spurred alarm on Wall Street. President Donald Trump's tax-cut package has cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. It also cuts health and food safety net programs and zeroes out dozens of green energy incentives. It would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) debt, according to the nonpartisan Congressional Budget Office. Despite concerns over the 869-page bill's price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House's 220 Republicans voting against it. The bill has already cleared the Republican-controlled Senate by the narrowest possible margin. Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth. Republican Representative Virginia Foxx of North Carolina described the bill as bringing: "Historic tax relief for working families. Massive investment to secure our nation's borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently." Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires," House Democratic Leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber's history. Trump kept up the pressure throughout, cajoling and threatening Congress as he pressed them to send him the legislation by the July 4 Independence Day holiday. "FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!" he wrote on social media. Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate. The bill passed the Senate on Tuesday in 51-50 vote in that saw Vice President JD Vance cast the tie-breaking vote. According to the CBO, the bill would lower tax revenues by $US4.5 trillion ($A6.9 trillion) over 10 years and cut spending by $US1.1 trillion ($A1.7 trillion). Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans. The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments - changes that would leave nearly 12 million people uninsured, according to the CBO. Republicans added $US50 billion ($A76 billion) for rural health providers to address concerns that those cutbacks would force them out of business. Nonpartisan analysts have found that the wealthiest Americans would see the biggest benefits from the bill, while lower-income people would effectively see their incomes drop as the safety-net cuts would outweigh their tax cuts. The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say. Ratings firm Moody's downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US Treasury bonds less attractive. On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Trump's 2017 individual and business tax cuts were due to expire. Those cuts are now made permanent, while tax breaks for parents and businesses are expanded. The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Trump campaign promises. The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than an initial version that passed the House in May. During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a "retaliatory tax" on foreign investment that had spurred alarm on Wall Street. President Donald Trump's tax-cut package has cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. It also cuts health and food safety net programs and zeroes out dozens of green energy incentives. It would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) debt, according to the nonpartisan Congressional Budget Office. Despite concerns over the 869-page bill's price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House's 220 Republicans voting against it. The bill has already cleared the Republican-controlled Senate by the narrowest possible margin. Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth. Republican Representative Virginia Foxx of North Carolina described the bill as bringing: "Historic tax relief for working families. Massive investment to secure our nation's borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently." Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires," House Democratic Leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber's history. Trump kept up the pressure throughout, cajoling and threatening Congress as he pressed them to send him the legislation by the July 4 Independence Day holiday. "FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!" he wrote on social media. Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate. The bill passed the Senate on Tuesday in 51-50 vote in that saw Vice President JD Vance cast the tie-breaking vote. According to the CBO, the bill would lower tax revenues by $US4.5 trillion ($A6.9 trillion) over 10 years and cut spending by $US1.1 trillion ($A1.7 trillion). Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans. The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments - changes that would leave nearly 12 million people uninsured, according to the CBO. Republicans added $US50 billion ($A76 billion) for rural health providers to address concerns that those cutbacks would force them out of business. Nonpartisan analysts have found that the wealthiest Americans would see the biggest benefits from the bill, while lower-income people would effectively see their incomes drop as the safety-net cuts would outweigh their tax cuts. The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say. Ratings firm Moody's downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US Treasury bonds less attractive. On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Trump's 2017 individual and business tax cuts were due to expire. Those cuts are now made permanent, while tax breaks for parents and businesses are expanded. The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Trump campaign promises. The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than an initial version that passed the House in May. During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a "retaliatory tax" on foreign investment that had spurred alarm on Wall Street. President Donald Trump's tax-cut package has cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. It also cuts health and food safety net programs and zeroes out dozens of green energy incentives. It would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) debt, according to the nonpartisan Congressional Budget Office. Despite concerns over the 869-page bill's price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House's 220 Republicans voting against it. The bill has already cleared the Republican-controlled Senate by the narrowest possible margin. Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth. Republican Representative Virginia Foxx of North Carolina described the bill as bringing: "Historic tax relief for working families. Massive investment to secure our nation's borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently." Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires," House Democratic Leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber's history. Trump kept up the pressure throughout, cajoling and threatening Congress as he pressed them to send him the legislation by the July 4 Independence Day holiday. "FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!" he wrote on social media. Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate. The bill passed the Senate on Tuesday in 51-50 vote in that saw Vice President JD Vance cast the tie-breaking vote. According to the CBO, the bill would lower tax revenues by $US4.5 trillion ($A6.9 trillion) over 10 years and cut spending by $US1.1 trillion ($A1.7 trillion). Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans. The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments - changes that would leave nearly 12 million people uninsured, according to the CBO. Republicans added $US50 billion ($A76 billion) for rural health providers to address concerns that those cutbacks would force them out of business. Nonpartisan analysts have found that the wealthiest Americans would see the biggest benefits from the bill, while lower-income people would effectively see their incomes drop as the safety-net cuts would outweigh their tax cuts. The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say. Ratings firm Moody's downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US Treasury bonds less attractive. On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Trump's 2017 individual and business tax cuts were due to expire. Those cuts are now made permanent, while tax breaks for parents and businesses are expanded. The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Trump campaign promises. The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than an initial version that passed the House in May. During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a "retaliatory tax" on foreign investment that had spurred alarm on Wall Street.
West Australian
4 days ago
- Business
- West Australian
Donald Trump news: US President's ‘Big Beautiful Bill' passes US Congress
US President Donald Trump's tax-cut package has cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. It also cuts health and food safety net programs and zeroes out dozens of green energy incentives. It would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) debt, according to the nonpartisan Congressional Budget Office. Despite concerns over the 869-page bill's price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House's 220 Republicans voting against it. The bill has already cleared the Republican-controlled Senate by the narrowest possible margin. Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth. Republican Representative Virginia Foxx of North Carolina described the bill as bringing: 'Historic tax relief for working families. Massive investment to secure our nation's borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently.' Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. 'The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,' House Democratic Leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber's history. Mr Trump kept up the pressure throughout, cajoling and threatening Congress as he pressed them to send him the legislation by the July 4 Independence Day holiday. 'FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!' he wrote on social media. Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate. The bill passed the Senate on Tuesday in 51-50 vote in that saw Vice President JD Vance cast the tie-breaking vote. According to the CBO, the bill would lower tax revenues by $US4.5 trillion ($AU6.9 trillion) over 10 years and cut spending by $US1.1 trillion. Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans. The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments - changes that would leave nearly 12 million people uninsured, according to the CBO. Republicans added $US50 billion for rural health providers to address concerns that those cutbacks would force them out of business. Nonpartisan analysts have found that the wealthiest Americans would see the biggest benefits from the bill, while lower-income people would effectively see their incomes drop as the safety-net cuts would outweigh their tax cuts. The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say. Ratings firm Moody's downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US Treasury bonds less attractive. On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Mr Trump's 2017 individual and business tax cuts were due to expire. Those cuts are now made permanent, while tax breaks for parents and businesses are expanded. The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Mr Trump campaign promises. The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than an initial version that passed the House in May. During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a 'retaliatory tax' on foreign investment that had spurred alarm on Wall Street.
Perth Now
4 days ago
- Business
- Perth Now
Trump's ‘big beautiful bill' narrowly passes US Congress
US President Donald Trump's tax-cut package has cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. It also cuts health and food safety net programs and zeroes out dozens of green energy incentives. It would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) debt, according to the nonpartisan Congressional Budget Office. Despite concerns over the 869-page bill's price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House's 220 Republicans voting against it. Speaker Mike Johnson oversaw the final passage of US President Donald Trump's signature tax bill. Credit: AAP The bill has already cleared the Republican-controlled Senate by the narrowest possible margin. Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth. Republican Representative Virginia Foxx of North Carolina described the bill as bringing: 'Historic tax relief for working families. Massive investment to secure our nation's borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently.' Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. 'The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,' House Democratic Leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber's history. Mr Trump kept up the pressure throughout, cajoling and threatening Congress as he pressed them to send him the legislation by the July 4 Independence Day holiday. 'FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!' he wrote on social media. Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate. The bill passed the Senate on Tuesday in 51-50 vote in that saw Vice President JD Vance cast the tie-breaking vote. According to the CBO, the bill would lower tax revenues by $US4.5 trillion ($AU6.9 trillion) over 10 years and cut spending by $US1.1 trillion. Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans. The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments - changes that would leave nearly 12 million people uninsured, according to the CBO. Republicans added $US50 billion for rural health providers to address concerns that those cutbacks would force them out of business. Nonpartisan analysts have found that the wealthiest Americans would see the biggest benefits from the bill, while lower-income people would effectively see their incomes drop as the safety-net cuts would outweigh their tax cuts. The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say. Ratings firm Moody's downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US Treasury bonds less attractive. On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Mr Trump's 2017 individual and business tax cuts were due to expire. Those cuts are now made permanent, while tax breaks for parents and businesses are expanded. The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Mr Trump campaign promises. The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than an initial version that passed the House in May. During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a 'retaliatory tax' on foreign investment that had spurred alarm on Wall Street.
