House Approves Trump’s Budget Bill with Trillion-Dollar Tax Cuts and Big Spending Cuts

The post House Approves Trump’s Budget Bill with Trillion-Dollar Tax Cuts and Big Spending Cuts appeared first on Coinpedia Fintech News

The US House of Representatives have approved a major budget bill which involves slashing taxes and cuts trillions in dollars in government spending. 

Despite opposition from Democrats and strict republicans, the bill still made it through. Notably, the budget is a crucial part of Trump’s policy goals which he calls ‘a big, beautiful bill’. He views it as a major win for his administration and supporters. 

After a narrow 216-214 bill House vote on Thursday, Trump shared in a social media post – “Congratulations to the House on the passage of a Bill that sets the stage for one of the Greatest and Most Important Signings in the History of our Country.”

House Plan Includes Bigger Cuts, $5T in Tax Breaks

The House and Senate have passed different versions of the bill and now they need to merge them together into one final version which Trump can sign. The process is called ‘Reconciliation’. 

Notably, the House’s version includes bigger spending cuts and proposes around $5 trillion in tax cuts. But this could increase the national debt by about a whopping $5.7 trillion over 10 years. With the US government currently owing around $36 trillion, this plan could significantly add to the debt unless other savings or revenue sources are found.

Initially, some staunch Republicans opposed the bill over rising US debt concerns demanding bigger spending cuts. Earlier this week, House Speaker Mike Johnson delayed the vote fearing it would not pass due to the slim Republican majority. 

Only two republicans voted against it by Thursday. The Senate’s version of the bill passed on Saturday includes at least $4 billion in spending cuts which is far less than the $1.5 trillion in cuts proposed by the House. The Senate Republicans note that the $4 billion is just the minimum figure and they will do everything they can to be as aggressive as possible.

Critics Warn This Could Worsen US Debt

Trump’s new budget bill proposes major spending cuts and big tax breaks including cuts on tips, overtime and Social Security benefits. While supporters claim that it will boost the economy, critics warn that it could worsen US debt. White House believes that higher tariffs will cover up the losses, but experts warn that fewer imports could lead to lesser revenue. 

Treasury Secretary Scott Bessent praised that the bill shows the administration’s commitment to growth. The Congress may have to soon raise the US’ debt ceiling again. While the House passed the bill, Democrats call it reckless due to the proposed cuts to medicaid and are determined to fight harder in Congress. 

The fight within the party comes as Trump’s tariffs have led to global market chaos. Lawmakers are concerned that a slowed economy due to trade war could result in lower tax revenues. 

White House Slams Insider Trading Claim

The White House criticised the accusations by Democrats who questioned whether some lawmakers knew in advance of Trump’s surprise Tariff pause, which triggered a sharp stock market rally. After dropping for four days, markets surged on Trump’s 90-day delay on steep tariffs for countries other than China.

Besides, Trump’s advisor Peter Navarro dismissed concerns that the sudden tariff pause caused lasting economic damage. Instead he said that it was just ‘a normal pullback’ and no big deal. He also claimed that the media outlets were exaggerating and turning the situation into political “spin.”