Latest news with #federaldeficit
Al Arabiya
21-07-2025
- Business
- Al Arabiya
Budget office says Trump's tax law will add $3.4 trillion to deficits, leave 10 million uninsured
WASHINGTON – President Donald Trump's tax and spending law will add 3.4 trillion to federal deficits through 2034, the Congressional Budget Office reported Monday, a slight increase in the projection that takes into account the final tweaks that Republicans made before getting the legislation over the finish line. More than 10 million people will be uninsured under the law in 2034 because of the law, CBO found, an improvement from an earlier projection that found 11.8 million people losing coverage over the decade. The release of the CBO analysis Monday comes at the end of a grueling legislative fight but at the start of a longer political struggle to come as the two parties clash over the law's impact on the economy, healthcare, and government programs. Republicans are touting the bill as a tax cut for all Americans, yet a recent AP-NORC poll found about two-thirds of US adults expect the new tax law will help the rich as Democrats attack the legislation. The bill Trump signed into law on July 4 extended current tax rates for individuals that were set to expire at the end of this year and temporarily created new tax deductions for tips, overtime, and auto interest loans for new vehicles assembled in the US. Republicans also used the bill to cut future spending on Medicaid and food assistance and to phase out certain clean energy tax credits more quickly. Democrats were quick to highlight the CBO's findings. 'Today's report reminds us of something: facts are stubborn and the facts are clear,' said Senate Democratic leader Chuck Schumer. 'The big ugly betrayal is a loser for the country and will be a loser for the Republicans.' Republicans say the bill was critical to ensure most Americans didn't experience a significant tax increase next year. Trump and Republicans have also insisted that economic growth will exceed the CBO's projections for the next decade, erasing the projected deficits as more revenue comes into the Treasury than anticipated. Nonpartisan fiscal watchdogs also highlighted the CBO's latest projection. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said there will be a shorter-term sugar high as stimulus makes its way through the economy. 'But modelers from across the ideological spectrum agree that any sustained economic changes are likely to be modestly beneficial or negative. And not one serious estimate claims this bill will improve our fiscal situation,' MacGuineas said. 'Rather, positive growth effects are likely to be swamped by the effects of higher debt and interest rates.' The CBO said more than 1 trillion in deficit savings is generated through the health portions of the bill, which includes new work requirements for certain Medicaid beneficiaries in states that expanded the program through the Affordable Care Act. Some late changes on Medicaid were made to the bill to win over holdouts. One of those changes added a 50 billion fund for rural hospitals.
Yahoo
11-07-2025
- Business
- Yahoo
Trump Treasury Secretary Scott Bessent knocks Elon Musk's new political party
Treasury Secretary Scott Bessent criticized Elon Musk's new political party, saying the world's wealthiest man wasn't a popular part of the Trump administration. Asked about Musk's move, Bessent told CNN's Dana Bash that the ideas behind the administration's Department of Government Efficiency effort, also known as DOGE, were "very popular." But "I think if you looked at the polling, Elon was not," Bessent said of the president's former advisor who led the White House's effort to slash the size of the federal government. On July 5, Musk announced he would be forming a new political party amid frustration with President Donald Trump's sweeping tax policy bill, which is expected to add at least $3.3 trillion to the federal deficit in the next ten years. "I believe that the boards of directors at his various companies wanted him to come back and run those companies, which he is better at than anyone," Bessent said of Musk's departure from the federal government. "So I imagine that those boards of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities," he added. A Quinnipiac University poll released last month found that 30% of American voters said they have a favorable opinion of Musk. Sixty-two percent of Republicans backed the billionaire, but that was down from 78% in the university's March survey. Bessent and Musk repeatedly clashed during the billionaire's time in the administration, culminating in Bessent calling Musk a "fraud" and Musk throwing his shoulder into Bessent's rib cage in the White House, setting off a "scrum" between the two, according to multiple reports. Musk and Trump, too, have feuded in recent weeks. Musk has been critical of Trump and congressional Republicans' efforts to pass the sweeping tax bill, arguing that it is reckless to saddle the country with so much additional debt. GOP leaders have contended that the bill will spur economic growth. Trump signed the bill into law on July 4. The Tesla and SpaceX CEO shared on X the next day that he was starting the "America Party," though the party's broader beliefs weren't immediately clear. "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy," Musk said on X on July 5. "Today, the America Party is formed to give you back your freedom." This article originally appeared on USA TODAY: Elon Musk: Trump treasury secretary Scott Bessent knocks America Party
Yahoo
03-07-2025
- Business
- Yahoo
Major win for Trump as Congress passes 'big, beautiful bill'
The US Congress has passed Donald Trump's sprawling tax and spending bill in a significant and hard-fought victory for the president and his domestic agenda. After a gruelling session on Capitol Hill, the House of Representatives passed the bill by a vote of 218 to 214 on Thursday afternoon. It was passed by the Senate on Tuesday by one vote. Trump had given the Republican-controlled Congress a deadline of 4 July to get a final version of the bill to his desk to be signed into law. The Congressional Budget Office estimates the bill could add $3.3tn to federal deficits over the next 10 years and leave millions without health coverage - a forecast that the White House disputes. Follow live coverage from Congress It also makes savings through rolling back tax breaks for clean energy projects and making cuts to a food benefits programme. The spending package delivers on many of Trump's campaign promises, including making his 2017 tax cuts permanent, as well as legislating new tax breaks for tips, overtime and Social Security recipients - at a cost of $4.5tn over 10 years. About $150bn (£110bn) will be spent on border security, detention centres and immigration enforcement officers. Another $150bn is allocated for military expenditures, including the president's "gold dome" missile defence programme. The fate of the so-called 'big, beautiful bill' hung in the balance for much of Wednesday as Republican rebels with concerns about the impact of the bill on national debt held firm - prompting a furious missive from Trump. "What are the Republicans waiting for??? What are you trying to prove??? MAGA IS NOT HAPPY, AND IT'S COSTING YOU VOTES!!!," he wrote on Truth Social just after midnight local time on Thursday. Both chambers of Congress are controlled by Trump's Republican Party, but within the party several factions were at odds over key policies in the lengthy legislation. In the early hours of Thursday, Republican leadership grew more confident, and a procedural vote on the bill passed just after 03:00 EDT (07:00 GMT). The bill's passage into law was delayed by Democratic House Minority Leader Hakeem Jeffries', who delivered the longest speech in the chamber's history. His "magic minute" address, which is a custom that allows party leaders to speak for as long as they like, ran for eight hours and 45 minutes. Jeffries pledged to take his "sweet time on behalf of the American people", decrying the bill's impact on poor Americans. His speech was watched by a field of tired eyes sitting around him, and proved to be Democrats' final move before the bill became law. A look at the key items in Trump's sprawling budget bill Fact-checking three key claims about Trump's mega-bill
BBC News
03-07-2025
- Business
- BBC News
Major win for Trump as Congress passes 'big, beautiful bill'
The US Congress has passed Donald Trump's sprawling tax and spending bill in a significant and hard-fought victory for the president and his domestic a gruelling session on Capitol Hill, the House of Representatives passed the bill by a vote of 218 to 214 on Thursday afternoon. It was passed by the Senate on Tuesday by one vote. Trump had given the Republican-controlled Congress a deadline of 4 July to get a final version of the bill to his desk to be signed into Congressional Budget Office estimates the bill could add $3.3tn to federal deficits over the next 10 years and leave millions without health coverage - a forecast that the White House disputes. Follow live coverage from Congress It also makes savings through rolling back tax breaks for clean energy projects and making cuts to a food benefits spending package delivers on many of Trump's campaign promises, including making his 2017 tax cuts permanent, as well as legislating new tax breaks for tips, overtime and Social Security recipients - at a cost of $4.5tn over 10 $150bn (£110bn) will be spent on border security, detention centres and immigration enforcement officers. Another $150bn is allocated for military expenditures, including the president's "gold dome" missile defence fate of the so-called 'big, beautiful bill' hung in the balance for much of Wednesday as Republican rebels with concerns about the impact of the bill on national debt held firm - prompting a furious missive from Trump."What are the Republicans waiting for??? What are you trying to prove??? MAGA IS NOT HAPPY, AND IT'S COSTING YOU VOTES!!!," he wrote on Truth Social just after midnight local time on chambers of Congress are controlled by Trump's Republican Party, but within the party several factions were at odds over key policies in the lengthy legislation. In the early hours of Thursday, Republican leadership grew more confident, and a procedural vote on the bill passed just after 03:00 EDT (07:00 GMT).The bill's passage into law was delayed by Democratic House Minority Leader Hakeem Jeffries', who delivered the longest speech in the chamber's "magic minute" address, which is a custom that allows party leaders to speak for as long as they like, ran for eight hours and 45 pledged to take his "sweet time on behalf of the American people", decrying the bill's impact on poor speech was watched by a field of tired eyes sitting around him, and proved to be Democrats' final move before the bill became law.
BBC News
03-07-2025
- Business
- BBC News
Wetin dey inside Trump 'Big Beautiful Bill'
US President Donald Trump budget mega-bill dey close to becoming law afta im pass one key ogbonge hurdle for di House of Representatives. Di bill now dey set for a final vote for di House bifor di president go sign am off. Im want do am by Friday. Di advancement bin no dey easy. Di legislation don cause disagreement among lawmakers from Trump own Republican Party, wey dey control both chambers of Congress, ova social programmes and spending levels. Di Congressional Budget Office dey estimate say di bill fit add $3.3tn to federal deficits ova di next 10 years and leave millions without health coverage - but dis forecast, White House no agree wit am. During one vote for US Senate earlier dis week, Vice-President JD Vance bin dey forced to cast di tie-breaking vote in order to pass di bill. Di legislation prospects for di House bin no get head, until Republican rebels signal for early mor-mor on Thursday say dem go support am. Dis na some of di key items and hotly-debated issues for di bill. Extension of 2017 Trump tax cuts During im first term, Trump bin sign di Tax Cuts and Jobs Act, wey lower taxes for corporations and for individuals across most income brackets. Trump claim say di law go stimulate economic growth, but experts argue say e go benefit wealthy Americans di most. Key provisions of dat law dey set to expire for December, but di ogbonge budget bill currently wey dey bifor lawmakers aim to make those tax cuts permanent. E go also increase standard deductions by $1,000 (£736) for individuals and $2,000 for married couples until 2028. Cuts to Medicaid To help finance tax cuts elsewhere, Republicans bin add additional restrictions and requirements for Medicaid, di healthcare programme wey millions of disabled and low-income Americans dey rely on. Changes to Medicaid - one of di biggest components of federal spending - na major source of political yawa. One of di changes na new work requirements for childless adults without disabilities. To qualify, di bill say, dem dey required to work at least 80 hours per month from December 2026. Anoda proposed change to di programme require Medicaid re-enrolment to shift from once a year to every six months. Enrolees go also provide additional income and residency verifications. Di Senate proposal put even more restrictions on Medicaid, wey dey likely to cause more headaches for Republicans for di House. Di upper chamber version propose to lower provider taxes - wey states dey use to help fund dia share of Medicaid costs - from 6% to 3.5% by 2032. Complaints from some Republicans for states wey draw fund from dis taxes, especially for rural hospitals, lead di Senate to delay di cuts and add a $50bn rural hospital fund. Di Senate bill also propose to tighten di eligibility requirements so dat di able-bodied adults wit children aged 15 and ova go need to work or volunteer at least 80 hours a month. Di Senate Medicaid work requirement na di strictest ever proposal by Republicans, wey raise di odds say large numbers of Americans fit lose medical coverage as dem no fit keep up with di new paperwork. Di Congressional Budget Office estimate say nearly 12 million Americans fit lose dia health coverage by di end of di next decade as a result of di proposed changes. Social Security taxes For im campaign trail, Trump bin vow to eliminate taxes on Social Security income - monthly payments to Americans of retirement age and pipo wit disabilities. Di House bill fall short of delivering on dat promise, but e bin temporarily increase di standard deduction of up to $4,000 for individuals 65 and ova. Dat deduction go dey in place from 2025-28. Senate Republicans approve an extension of Social Security tax breaks and increase wey go grant a $6,000 tax deduction for older Americans wey dey earn no more dan $75,000 a year. Increasing state and local tax deduction (Salt) Di bill go increase di deduction limit for state and local taxes (Salt). Currently, na $10,000 cap dey on how much taxpayers fit deduct from di amount dem dey owe in federal taxes. Dat go expire dis year. Di Senate approved bill raise am from $10,000 to $40,000 - but after five years, e go return to $10,000. Salt taxes na big sticking point for di House, especially Republican holdouts for some Democratic-controlled urban areas. Di House version of di spending bill no include a five-year limit, so di Senate changes fit pose problem for some House Republicans. Cuts to food benefits Dem also add reforms to di Supplemental Nutrition Assistance Program (Snap), wey ova 40 million low-income Americans dey use. Di Senate bill require states to contribute more to di programme, wey currently dey fully funded by di federal goment. Di goment go continue to fully fund di benefits for states wey get error payment rate below 6%, but states wit higher error rates go dey on di hook for anywhere from 5% to 15% of di programme costs. Di change go start in 2028. Di Senate bill also add work requirements for able-bodied Snap enrollees wey no get dependents. No tax on overtime or tips and other elements Di "no tax on tips" provision for di budget bill go mark as win for one of Trump promises during di campaign. Di Senate bill wey di House dey consider go allow individuals to deduct a certain amount of tip wages and overtime from dia taxes. However, dem dey propose to gradually phase out those benefits based on annual income, starting at $150,000 for individuals and $300,000 for joint filers. E go expire for 2028. Di Senate legislation go also permanently increase a child tax credit to $2,200 – wey dey $300 less dan wetin di House lawmakers bin dey eye. Di House version bin require both parents to get a Social Security number, but di Senate OK a requirement of only one parent. Di upper chamber bill also propose to raise di debt ceiling by $5tn - more dan di $4tn wey di House bin approve last month. Di debt ceiling na di limit on di amount of money wey US government fit borrow to pay dia bills. To lift di debt limit go allow di govment to pay for programmes wey already, Congress don approve. Clean energy tax cuts One of di most notable divisions between House and Senate Republicans na Senate proposal for clean energy tax breaks. Although both call for an end to Biden-era federal clean energy tax credits, Senate Republicans bin approve for dem to phase am out more slowly. For example, di Senate bin extend di runway for businesses wey dey build wind and solar farms to still benefit from di tax credits. However, both di House and Senate version seek to deny di credits to company for di supply chains wey fit get ties to a "foreign entity of concern", like China. Companies wey go begin construction dis year fit qualify for di full tax break. Dat go drop to 60% if dem begin construction for 2026 and 20% if dem begin for 2027. Di credit go disappear for 2028. Di House version of di bill bi seek to end di tax breaks for those companies almost immediately.
