On Tuesday (July 1), the Republican -controlled US Senate (July 1) was closely approved by a large tax package and expenditure promoted by President Donald Trump, which meant the main legislative victory for the administration before the holiday of July 4.
Measures formally known as “One Big Beautiful Bill Act”, sold by the fact that the vice president of JD Vance handed over the vote in a evenly divided chamber.
Legislation introduces trillion dollars into permanent tax cuts, including extending tax reduction from 2017 and adding new breaks, such as removing federal taxes from tips. It also stores significant cuts on social security network programs, including Medicaid’s health coverage for Americans with low income and food aid programs that millions of families and people with disabilities rely on.
Republicans argued that the bill would increase economic growth and simplify the Tax Act. However, critics warned that they would sharply increase the federal deficit – an estimated $ 3.3 trillion in the next decade – and leaving vulnerable Americans without basic benefits.
The passage in the Senate came after an intense overnight stay of the voting marathon, because GOP leaders tried to ensure support from Republicans who touched that the Republicans had touched on the extent of the reduction of Medicaid and the impact on rural hospitals.
The bill now returns to the House of Representatives to the final vote at the end of this week before it can go to Trump’s table to sign.
Three Republicans eventually broke the rows to oppose measures:
- Thom Tillis (North Carolina): He quoted concerns about millions of losing Medicaid coverage.
- Senator Rand Paul (Kentucky): He protested against an increase in the debt ceiling by $ 5 trillion.
- Susan Collins (Maine): He expressed doubts about steep cuts on social security networks, but relaxed after concessions.
What is the account
Formally called The One Big Beautiful Bill Act, Legislation:
It extends Trump’s tax of 2017 permanently, which were set up for expiration this year.
It adds new tax relief for income, overtime and seniors.
It provides $ 350 billion in new funds for border security and mass deportation programs.
He will return billions in the incentives of green energy created under President Biden.
It stores $ 1.2 trillion in cuts on Medicaid and food stamps by tightening the capacity and requires that many recipients work.
It estimates that the budget office for non -membership, the bill will add $ 3.3 trillion to a federal debt, except what already owed $ 36.2 trillion. Republicans claim to reduce taxes and will be more sustainable. Democrats and several central Republicans face to leave 12 million Americans with low incomes and disabilities uninsured and deepen the inequality of income.
House Showdown ahead
Attention is now turning to the House of Representatives, where Republicans hold most of 220–212. The earlier version went through only two votes in the house in May. Since then, the division has sharpened:
Kauvka Freedom Freedom wants even deeper cuts.
Moderates from lower revenue districts object to the Senate plan to decrease a steep reduction in the Senate plan.
Some Republicans also resist the removal of state and local tax deductions critical to components in countries with high taxes.
House Republican leaders face Trump’s intensive pressure to supply the tax and expenditure law within 4 July.
An economic and political impact
The measure is the most ambitious legislation of domestic policy Trump’s second term and combining permanent reducing taxes with unprecedented returning social programs. It also includes an increase in the debt ceiling of $ 5 trillion to avoid summer defaults, although critics warn that it is burdening younger Americans with slower growth and higher loans costs in the coming decades.
The democratic leader of the Senate Chuck Schumer has described the legislation “” unscrupulous, unpopular and cruel plan that punishes working family and rewards the rich. “
Nevertheless, Republican leaders insist that the package will fulfill the promises of Trump’s campaign. “It is a refund in the pockets of hardworking Americans and securing our boundaries,” said the leader of most Thune.
The house is expected to deal with the law within a few days and prepare the ground for further voting that could define Trump’s legislative legislation.
Also read | What is inside “One Big Beautiful Bill” Donald Trump? (Tagstotranslate) One big beautiful account on account
