U.S.
The House of Representatives approves the Republican tax bill
Jul
The House of Representatives narrowly approved the Republican tax and budget package, delivering President Trump a significant victory in his second term. The 218-214 vote met his self-imposed deadline to sign the bill before July 4. The legislation combines tax cuts, tightened border security, and reductions in social programs.
Internal Dissent: Two Republicans Break Ranks
Thomas Massie (Kentucky) and Brian Fitzpatrick (Pennsylvania) voted with Democrats against what Trump called a “big, beautiful bill.” Despite intense overnight negotiations, pressure from the former president and House Speaker Mike Johnson secured the support of most Republicans. “We are on the verge of a new golden era,” declared Majority Leader Steve Scalise.
Democrats Warn of Growing Inequality
Democrats argued that the wealthiest individuals and large corporations would benefit the most from the tax plan, while vulnerable citizens bear the burden. Hakeem Jeffries (D., N.Y.) delivered a marathon speech lasting over eight hours, reading testimonies from citizens affected by the bill. His address set records and received standing ovations from his caucus.
Republicans Rush to Finalize Flagship Bill Amid Internal Tensions
Republicans are pushing to deliver their ambitious legislative package to Donald Trump before July 4, but internal disagreements…
Permanent Extension of 2017 Tax Cuts
One of the GOP’s main achievements was removing the expiration date on the 2017 tax cuts. Measures include expanded standard deductions, child tax benefits, and exemptions for business inheritances. The bill also adds temporary Trump-backed deductions for tips, overtime, and car loan interest.
Cuts to Health, Social Programs, and Clean Energy
To offset the fiscal impact, the bill includes cuts to Medicaid, food assistance, and limits on state funding. Over 11 million people could lose health coverage by 2034. Key provisions of the Inflation Reduction Act are also repealed, dealing a blow to renewable energy and the electric vehicle industry.
Senate Criticism and Deficit Controversy
The final version, passed 51-50 in the Senate, drew criticism from Freedom Caucus members for increasing deficits and easing environmental restrictions. While the original plan capped tax cuts and spending at $2.5 trillion, the final bill exceeds that by $500 billion. According to the Congressional Budget Office, the deficit will grow by $3.4 trillion by 2034.
Internal Tensions, but Final Majority Support
Despite ideological differences, even “fiscal hawks” and moderate Republicans ultimately supported the bill. Senate revisions softened some local impacts, making a “yes” vote more palatable. “A lot will change by 2028,” said Jeff Van Drew (R., N.J.), suggesting the effects won’t be immediate. Trump and GOP leaders pledged future adjustments if necessary.
