US Senate Supports Trump’s Tax Cuts as National Debt Rises
Synopsis
In a weekend session, the U.S. Senate took one step toward enactment of President Donald Trump's huge tax cut and spending package. Over criticism of its price tag, the legislation overcame a hurdle late…
In a weekend session, the U.S. Senate took one step toward enactment of President Donald Trump's huge tax cut and spending package. Over criticism of its price tag, the legislation overcame a hurdle late on Saturday night, as a 51-49 vote sent it to full debate.
The bill, which is more than 900 pages long, contains extensions on Trump's 2017 tax cuts, more military spending, and extra border security funding. Trump has continuously referred to the bill as a "big, beautiful win" and is urging it to be approved ahead of the July 4 holiday. However, a new report from the nonpartisan Congressional Budget Office (CBO) estimated that the legislation would add $3.3 trillion to the national debt over the next 10 years—$800 billion more than the House version passed in May.
Republicans Divided, Democrats Sound Alarm on Rising Deficits
Although Republicans favor the bill, the vote also reflected intraparty discord. Two Republican senators, North Carolina's Thom Tillis and Kentucky's Rand Paul, opposed the bill. Tillis, after Trump publicly criticized him for his "no" vote, said he would not run for re-election. Trump hailed the news on Twitter, labeling it "Great News!" and told other Republicans they still have to get votes in future elections.
Even as long-time GOP complaints about the national debt are ignored, Republicans are rejecting the CBO's estimates. Instead, they are employing a different method of calculation that does not include the price of extending previously enacted tax cuts. The technique is described by critics, including Bipartisan Policy Center analysts, as creating a false impression of the financial effect of the bill.
Democrats, however, are against the bill, labeling it as the most costly legislation in American history. Senate Minority Leader Chuck Schumer accused Republicans of "fake math" and stated that the bill would offer huge tax breaks to the rich at the expense of slashing important social programs such as Medicaid and food stamps. Virginia Sen. Mark Warner cautioned that up to 16 million Americans would lose health insurance coverage if the bill is enacted, with others at risk of reduced social services.
Political Stakes High as July 4 Deadline Nears
Trump and Republican leaders prefer the bill be passed by Independence Day, but it is not yet been done. After debate, the Senate will start an ardent "vote-a-rama" session to debate amendments. If approved, the bill will go back to the House of Representatives for finalization before it reaches the President's desk.
A few Republicans, such as Senator Katie Britt of Alabama, supported the bill, claiming it would allow "hardworking people to keep more of their money." Others, such as Rand Paul, remained firm in their resistance, claiming the bill increases the borrowing limit by yet another $5 trillion.
While lawmakers fight it out, eyes are also looking to the next fiscal cliff: increasing the U.S. debt ceiling this summer to prevent default on the $36.2 trillion federal debt.
Stay informed. Stay inspired. Subscribe to Inspirepreneur Magazine’s Newsletter for the latest developments on global conflicts, leadership insights, and strategic innovations shaping tomorrow’s world.
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
The Critical Role of Emotional Intelligence in Leadership and Performance
Oil Prices Push U.S. Stocks Lower as Middle East Tensions Rise
