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Yahoo
22-05-2025
- Business
- Yahoo
Republicans eye Thursday vote on Trump's tax cut mega-bill
Republicans announced Wednesday they will vote early Thursday on US President Donald Trump's sprawling domestic policy mega-bill pairing tax relief with spending cuts that critics say would decimate health care while ballooning the debt. The "One Big, Beautiful Bill Act" would usher into law Trump's vision for a new "Golden Age," achieved through cuts to public services to pay for a 10-year extension of his 2017 tax cuts. But it is dangling by a thread, with independent analysts warning it will increase the deficit by as much as $4 trillion over a decade, rattling fiscal hawks who say the country is careening toward bankruptcy. The nonpartisan Congressional Budget Office predicted it would boost the incomes of the richest 10 percent while making the bottom 10 percent poorer, through hundreds of billions of dollars in cuts to health care and food aid. House Speaker Mike Johnson set a May 26 -- Memorial Day -- deadline for passing the package but is anticipating attendance problems at the back end of the week and set a rare overnight vote, expected around 4:30am (0830 GMT). The White House Council of Economic Advisors has made hugely ambitious projections, well outside the mainstream consensus, that the package will spur growth of up to 5.2 percent. And Trump's press secretary Karoline Leavitt claimed the bill "does not add to the deficit," and would actually save $1.6 trillion through spending cuts. But investors were unconvinced as the yield on the 10-year US Treasury note surged to its highest level since February on Wednesday amid worries over the budget-busting bill's bottom line. Major US markets tumbled well over one percent. "My concern about the deficit and the debt is tremendous," Texas congressman Keith Self, a Republican, told CNN. "This bill in its entirety, the way it was written: we would go from $36 trillion now in debt to $56 trillion minimum in 10 years." - 'Devastating' - Democrats have called the bill "devastating" for the US middle class, needling Republicans on multiple aspects of the giant package. Its fate in the House of Representatives could reveal the limits of Trump's sway over the party's quarrelsome and deeply polarized lawmakers. The president pressured the party to back the package in a rare Capitol Hill visit Tuesday after it hit a series of roadblocks pitting conservative fiscal hawks against moderate coastal Republicans. Speaker Johnson can lose just three members in a vote of the full House. Initially multiple conservatives appeared ready to reject the bill but a follow-up meeting with Trump on Wednesday -- this time at the White House -- appeared to have persuaded some of the holdouts to fall into line. Its fate remains uncertain, however, with fiscal hawks unhappy that proposed cuts to the Medicaid health insurance program were not deeper -- a red line for moderates and possibly for Trump, who told the party in coarse terms not to touch the social safety net. To appease his right flank, Johnson moved up the enforcement of work requirements for Medicaid recipients by two years to the end of 2026 and offered to phase out clean energy tax credits earlier. Meanwhile a group of moderate northeastern Republicans pushing for huge increases in the state and local tax (SALT) write-off secured a compromise of a four-fold hike, from $10,000 to $40,000. If Johnson can pull off passing the mega-bill through the House, it is likely to undergo significant rewrites in the Senate, which plans to get the package to Trump's desk by July 4. "It's no secret how awful the Republican tax bill is," Senate Minority Leader Chuck Schumer said in a floor speech. "For weeks, we've said their bill shows that billionaires win, American families lose." ft/acb
Yahoo
20-05-2025
- Business
- Yahoo
Trump Downplays SALT Cap Hike as New York Republicans Dig In
(Bloomberg) — President Donald Trump downplayed the importance of the state and local tax deduction to passage of his giant tax bill as he met with GOP lawmakers on Capitol Hill to discuss moving his agenda forward. America, 'Nation of Porches' NJ Transit Train Engineers Strike, Disrupting Travel to NYC NJ Transit Makes Deal With Engineers, Ending Three-Day Strike Trump said the SALT deduction benefits Democratic states and politicians, signaling that the tax break, which predominately benefits high-tax states like New York, New Jersey and California, isn't a central concern of Republicans. 'It's not a question of holdouts. We have a tremendously unified party,' Trump said Tuesday before meeting with lawmakers. 'There's some people that want a couple of things that maybe I don't like or that they're not going to get.' Still, Trump has repeatedly pledged bigger SALT deductions, which were limited in his first-term tax cut bill. A faction of Republicans from high-tax states have threatened to sink Trump's agenda over SALT. Trump, however, shrugged off those concerns. 'There are one or two points some people feel strongly about, but maybe not so strongly,' Trump said ahead of the meeting. House Speaker Mike Johnson met with those SALT holdouts late Monday, but left without an agreement. Representative Nick LaLota, a New York Republican, said House leaders offered a SALT proposal that would temporarily raise the cap higher than the $30,000 in the draft bill, before reverting back to the lower level. 'Any proposal that has the cap falling off a cliff is unacceptable to me,' LaLota told reporters Tuesday morning. 'Now is the time to get it right.' Another New York Republican, Mike Lawler, told reporters there is no SALT deal and a vote on the bill — planned for as soon as Wednesday — will fail without one. Johnson was more positive about the chances for a deal. He still plans for the House to vote on the package by the end of the week. 'We're going to get an agreement on everything necessary to get this over the line,' he said Tuesday. The bill approved last week by the House tax committee sets a $30,000 cap for individuals and couples. That draft called for phasing down the deduction for those earning $400,000 or more, a plan quickly rejected by several lawmakers who called it insultingly low. The current writeoff is capped at $10,000. Stephen Miran, who chairs the White House Council of Economic Advisors, said he was confident Trump would be able to quickly reach a deal on SALT with House Republicans. 'The president will deliver SALT relief to American households. I don't know exactly what the number will shake out,' Miran told Bloomberg Television on Tuesday. 'The president is one of the best negotiators in history and he's shown over a career spanning decades that he can forge hundreds of deals and I think he'll forge another one right in front of us now.' The holdout lawmakers — who also include New York's Andrew Garbarino and Elise Stefanik, New Jersey's Tom Kean and Young Kim of California — have threatened to reject any tax package that does not raise the SALT cap sufficiently. Garbarino said Johnson made the group several offers and that they're awaiting more analysis Tuesday morning. 'I'm just happy we're having the discussion and they're working with us,' Garbarino said. Earlier: Trump Plans to Rally Fractious House Republicans on Tax Cuts Republicans are also squabbling over spending reductions in the bill, including weighing cuts to Medicaid health coverage and nutritional programs for low-income households. They are trying to keep revenue losses from their tax-cut package down to a self-imposed limit of $4.5 trillion over 10 years. The current package has a $3.8- trillion revenue loss. Why Apple Still Hasn't Cracked AI Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
05-04-2025
- Business
- Bloomberg
Tariff Angst Trigger Stock Selloff
"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On the show today, Sen. Mark Warner (D) Virginia, Rep. Mike Lawler (R) New York, White House Council of Economic Advisors former member Heather Boushey, BGR Group International Practice Co-Head and Republican Strategist Lester Munson, Iona University Political Science Professor and CSPC Senior Democracy Fellow Jeanne Sheehan Zaino. (Source: Bloomberg)
Bloomberg
07-02-2025
- Business
- Bloomberg
Chaos, Economic Mismanagement: Boushey on Trump Administration
Heather Boushey, Fmr. White House Council of Economic Advisors Deputy Director, weighs in on current National Economic Council Director, Kevin Hasset's comment that the Biden economy was way worse than markets thought as US jobs data showed job growth slowed in January. Boushey also talks about the Trump Administration, Elon Musk, and how President Trump is creating 'economic mismanagement.' Heather Boushey speaks with Kailey Leinz on Bloomberg's 'Balance of Power.' (Source: Bloomberg)
