After a week full of political drama, sleepless nights, negotiations, threats, moods and a single crushed career, the congress agreed to Donald Trumps budget and tax plan. This happened, as expected, with a particularly small majority on Thursday afternoon local time. The Big Beautiful Billas Trump calls it, the financial foundation must lay for all his election promises – at the expense of social provisions for poor Americans, the financial household of the country and the national debt.
The budget law is an important victory for home chairman Mike Johnson and senate leader John Thune, who kept their groups under control, but especially for the president. It is his first real parliamentary success since his return to the White House and perpetuates his grip on the Republican Party.
The plan regulates that the temporary tax reduction from 2017 will be maintained. He mainly spokes the richest Americans and large companies. In addition, the budget law limits taxes on tips, overtime and AOW, with which Trump campaigned. The plan releases extra money for the aliens police and detention, the border wall and for defense. But it also cuts in health insurance and food aid for poor Americans. On programs that Trump said earlier they would leave alone, 1,000 billion dollars are cut. Despite that curtailment, the current national debt of nearly $ 37,000 billion (more than 31,300 billion euros) will increase an estimated 3,300 billion in the coming ten years.
Certainly a dozen republicans threatens to lose a democrat in the interim elections because of cutting care
Dozens of Republican Congress members openly expressed objections to the plan and threatened to vote against. Nights were canceled in the Senate and the house to force them to capitulation. In the end, no more than three senators and two representatives dared to vote against Trump’s plan. Attempts of tax conservatives to close the gap in the budget and of more populist in order to curb the cutbacks on the Medicaid care program did not end up. A few protested against the abolition of subsidies on green energy. It all turned out to be for the stage. In the end, their loyalty to Trump was more important than their supporters or their own seat.
Cut the care
Certainly a dozen republicans threatens to lose from a democrat in the interim elections next year because the unpopularity From cutting in care. More than eleven million Americans are about to lose their subsidized health insurance. The vulnerable senator Thom Tillis (North Carolina) announced immediately after his departure from Washington.
Representative Brian Fitzpatrick, who is one swing district In Pennsylvania represents, also voted against. From the budget havats that always rage against too great expenses from the opposition, only Thomas Massie (Kentucky) dared to vote ‘No’. He has no democrat to fear, but Trump has already announced that he will support a counter -candidate in the Republican primaries. Warren Davidson (Ohio), who had voted against an earlier version of the plan in May, chose eggs for his money. He had hoped that adjustments in the Senate would be an improvement, he said, but was disappointed. “I think this is probably the best product we can get and I want to do everything we can to help President Trump get this bill over the finish,” he concluded.
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The Democrats have tuned unanimously and hope that Republicans will be charged on the consequences of Trumps Tax and Budget Plan in the interim elections of November next year. They mainly try to connect vice president JD Vance, who cast the decisive vote when the votes in the Senate were discontinued on Tuesday, to the plan. That could stick to him if, as is expected, he became the Republican presidential candidate in 2028.
Hakeem Jeffries, chairman of the Democrats in the House, called it “reckless, regressive and reprehensible Republican tax fraud.” In a record -length speech of almost nine hours, he read personal stories from Americans in Republican districts on Thursday that are in danger of losing their care for the disabled. Jeffries predicted that ‘people will die because they are denied care thanks to Trumps Big Ugly Bill“.
Electoral risk
After the Senate took an adjusted, even more expensive, version of the plan that the house approved before, the House of Representatives agreed on Thursday. Donald Trump will publicly sign the law on Friday, July 4, on the American Independence Day.
The Republicans not only take an electoral risk, but also defy the US Central Bank (the FED), the bond market and the stability of the dollar. Trump has been putting the Fed under pressure to lower interest rates for a while, but it threatens to continue to rise through his budget and make the lives of Americans with debts more expensive. On Wednesday, President Trump called Jerome Powell “to step up immediately“.
With the tax cuts in this plan, Trump and party members think that unprecedented economic growth in this plan. He will have to bring new tax returns through extra created jobs. Economists at Yale University expect A small recovery in the short term, but economic contraction in the coming decades due to the debt position and high interest rates.
That should not spoil the fun for Trump for the time being. The successful outcome shows that it is precisely because of the very small margins in the congress (53 to 47 senators and 218 to 214 delegates) very little room for cross -republicans to stipulate changes in legislation. “We are not going to conclude agreements here, because that opens Pandora’s box,” said house chairman Johnson. The satisfying one would only lead to greater dissatisfaction with the other. And the Republicans share a priority: keeping the ranks closed and providing the president with successes.