The US House of Representatives narrowly passed President Donald Trump’s tax-cut bill, dubbed the “One, Big, Beautiful Bill,” with a razor-thin margin of 215-214. The bill, which aims to fulfill Trump’s campaign promises, now heads to the Senate for further deliberation.
*Key Provisions*
The bill includes significant tax cuts and spending measures, such as :
– *Tax Cuts*:
Extends the 2017 Trump tax cuts, eliminating taxes on tips and overtime pay, and provides tax deductions for purchasing American-made vehicles.
– *Border Security*:
Funds for border security measures, including tens of thousands of border guards and capacity to deport up to 1 million people each year.
– *Medicaid and SNAP*:
Tightens eligibility for health and food assistance programs, accelerating work requirements for Medicaid recipients.
– *Economic Growth*:
Predicts up to $13,300 more in take-home pay for a typical family and up to $11,600 more in wages for American workers.
*Reaction and Impact*
The bill’s passage has drawn criticism from Democrats, who argue it disproportionately benefits the wealthy while cutting vital social services for working Americans. The Congressional Budget Office (CBO) projects the bill will add approximately $3.8 trillion to the federal debt over the next decade. Investors have responded cautiously, selling off US assets and pushing Treasury yields to their highest since October 2023 .
*Senate Challenges Ahead*
The bill now faces further deliberation in the Senate, where Republicans hold a slimmer 53-47 majority. Senate Majority Leader John Thune is expected to begin work on the package, but several senators may pose challenges to the bill’s passage. Trump has urged the Senate to expedite the process, stating, “Now, it’s time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE!”
*Potential Outcomes*
The Senate may make changes to the bill, which could upset the careful balance struck by House Republican leaders. Possible areas of contention include .
– *Deficit Reduction*:
Some senators may push for greater deficit reduction, while others may prioritize tax cuts and spending measures.
– *Medicaid Changes*:
Senators may debate the impact of Medicaid changes on vulnerable populations.
– *Border Security Funding*:
The level of funding for border security measures may be subject to further debate.
Ultimately, the bill’s fate will depend on negotiations between House and Senate Republicans, as well as potential concessions to address concerns from various factions within the party.
