Trump’s massive tax cut bill passes key US House committee vote

A crucial congressional committee has approved President Donald Trump’s comprehensive tax-cut bill, which could lead to its passage in the House of Representatives later this week.

After hardline Republican conservatives on Friday blocked the bill from passing the House Budget Committee due to a budget dispute involving the repeal of green energy tax credits and spending cuts to the Medicaid healthcare program for low-income Americans, Trump and House Speaker Mike Johnson are now in a big win.

The committee’s 21 Republicans, which included four hardline members, approved the legislation by casting a “present” vote. All Democrats cast ballots against the bill, which was approved by 17-16.

The hardliners had largely engaged in inside-the-box discussions with White House officials and House Republicans.

Soon before the meeting, Johnson told reporters that the modifications were “just some minor modifications.” Not particularly important.

Republican House Budget Chairman Jodey Arrington predicted that discussions would continue into the week, “right up until the House is given this enormous, beautiful bill.”

According to nonpartisan analysts, the bill would add $ 3 trillion to $ 5 trillion to the $ 36.2% national debt over the next ten years, extending the tax cuts that were Trump’s signature first-term legislative victory.

Moody’s downgraded the US’s credit rating on Friday, citing the rising debt, which it said was on track to reach 134 percent of GDP by 2035.

In an interview with CNN on Sunday, US Treasury Secretary Scott Bessent claimed that the bill would encourage enough economic growth to offset any debt growth, adding that Moody’s downgrade was not given much weight.

Following previous downgrades by Fitch Ratings and S&amp, P, economic experts have warned that the downgrade indicates that the US has too much debt and that lawmakers need to either increase spending or reduce spending.

Republicans in the House are divided over how much spending will be cut to make up for the cost of the tax cuts, with a majority of 220-213.

Republicans’ backers say Medicaid cuts would hurt the very voters who voted for Trump in November, and that they will need in 2026, when control of Congress is once again at stake.

8.6 million people would be omitted from Medicaid as a result of the bill’s cuts.

Additionally, it aims to boost defense spending and increase funding for Trump’s border crackdown, as promised in his campaign promises, while lowering taxes on tips and some overtime income.

The cut in credit ratings, according to Democratic US Senator Chris Murphy of Connecticut, caused problems for Americans.

“That’s a really big deal,” she said. That implies that the economy is likely on the verge of a recession, Murphy told NBC’s Meet the Press.