Trump Secures Landmark Tax鈥慡pending Victory in Congress

By IPA Webdesk

Trump Secures Landmark Tax鈥慡pending Victory in Congress

President Donald Trump has achieved a pivotal legislative win after a narrow 218鈥214 vote in the House of Representatives approved his comprehensive tax and spending package. The legislation, labelled the 鈥淥ne Big Beautiful Bill鈥 by its backers, now heads to his desk for signing during a July鈥4 White House ceremony. It extends Trump-era tax cuts from 2017, eliminates income tax on tips and overtime, and includes a significant rise in deficit limit to avert a debt ceiling crisis.

The legislation offsets these measures by slashing social safety net programmes. It mandates work requirements for able-bodied Medicaid recipients and cuts approximately $185鈥痓illion from SNAP food assistance, alongside trimming federal healthcare spending by at least $1鈥痶rillion. According to non鈥憄artisan Congressional Budget Office forecasts, around 12鈥痬illion Americans risk losing health insurance by 2034, and the federal deficit may swell by $3.3鈥$4鈥痶rillion over the next decade.

Republican leaders hail the legislation as a cornerstone of Trump鈥檚 second鈥憈erm promises. Speaker Mike Johnson praised it for delivering 鈥渙ne big, beautiful bill鈥 that reinforces border security, military strength and economic growth. Senator J. D. Vance cast the tie鈥慴reaking vote in the Senate, permitting the reconciliation process to bypass Democratic filibusters. President Trump describes it as foundational for a 鈥渘ew era鈥 with growth unleashed by permanent tax cuts.

Opposition has been fierce among Democrats, who unanimously rejected the bill. Hakeem Jeffries delivered an eight-hour, 44鈥憁inute speech condemning it as the 鈥渙ne big, ugly bill鈥 that benefits the wealthy while jeopardising vulnerable communities. Progressive voices warn of 鈥淐OVID鈥憇tyle healthcare chaos,鈥 cautioning that millions could lose coverage and emergency services face a surge in demand.

Within the GOP, two Republicans鈥擳homas Massie and Brian Fitzpatrick鈥攄efied party lines, citing fiscal concerns and the scope of Medicaid cuts. Moderate Republicans had backed away over fears of burdening rural hospitals through new Medicaid co鈥憄ayments and limiting provider taxes. Conservatives, meanwhile, rallied behind the expanded tax breaks for tips, overtime and seniors, arguing these bolster working鈥慶lass families.

Fiscal watchdogs and economists express unease. The CBO and the Center for Budget and Policy Priorities underscore risks to low鈥慽ncome households, projecting millions will lose critical benefits over the next decade. States dependent on federal funding warn of increasing strain on hospitals and safety net services due to cuts and new administrative mandates.

Polling data suggests broad public disapproval, with close to half of Americans opposing the measure and just under a third in favour. Experts note that similar ideological reconciliation bills have historically triggered mid鈥憈erm electoral backlash for the governing party, raising questions about potential political ramifications for Republicans.

Despite criticism, the legislation secures allocations for immigration enforcement鈥攁bout $45 billion for ICE detention, $14 billion for deportations, and a $50 billion contribution to the border wall鈥攁s well as a large boost to defence spending, including funding for the proposed 鈥淕olden Dome鈥 missile system.

Business groups largely endorsed the package, with the Business Roundtable calling it a 鈥渕onumental victory鈥 expected to invigorate investment and innovation. Conversely, clean鈥慹nergy advocates warn that withdrawal of Biden-era tax credits will impede green initiatives and investment in renewable technology.

Midwestern politicians have reacted sharply. Michigan Governor Gretchen Whitmer accused the federal Republicans of 鈥渞aising grocery and utility bills,鈥 threatening Medicaid coverage for 15,000 residents, and criticised local GOP representatives for undermining constituents. In contrast, Michigan Republicans celebrated the bill, emphasising tax cuts on overtime, tips, and measures targeted at China鈥慳ffiliated companies from securing green energy credits.

The House鈥檚 passage followed tense negotiations that stretched into the early hours; a marathon eight鈥慼our vote session forced Speaker Johnson to seal concessions and secure hard鈥憀iner support. Trump himself campaigned intensively in the White House, reportedly blending threats of primary challenges and promises of executive orders to pressure hold鈥憃ut Republicans.

With Trump鈥檚 signature expected today, the legislation marks a high鈥憇takes gamble that reshapes fiscal policy and domestic priorities. However, its deep cuts to social programmes and escalating deficit raise questions about its sustainability and political impact ahead of mid鈥憈erm elections.

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