The core of the Trump administration’s agenda rests on Congress approving a massive tax cut for corporations and a significant cut to social spending. The President continues to view this legislation as key to his domestic agenda. The massive 940-page bill was released late Friday night. It wants to see the truly far-reaching reforms go into effect—the ones that the GOP has invested so much of its political capital to pass. With a self-imposed deadline set for July Fourth, the President is rallying lawmakers to align with his vision, despite considerable opposition from Democrats.
Republicans control today’s Congress —both chambers. They are doing all this with their razor-thin majority, advancing their dangerous package against the overwhelming bipartisan opposition of Democrats. The new legislation provides some of the biggest tax breaks and spending cuts to the poorest countries on record. It earmarks $350 billion for national security, much of that money funding Trump’s mass deportation programs. Here are the biggest provisions of the bill that add new tax breaks. For instance, it removes the tax on tips for service workers.
As talks continue, President Trump has made clear that he wants to see Republicans united. He’s the first to take on the “grandstanders” in the party, as he’s called them, directly. We are still trying to get them to support this legislation.
“We can get it done. It will be a wonderful Celebration for our Country” – Donald Trump
Opposition persists. Senator Chuck Schumer has criticized the push for a rapid vote, arguing that “there’s no good reason for Republicans to chase a silly deadline.” This sentiment echoes concerns raised by various lawmakers and political analysts regarding the bill’s potential implications for millions of Americans.
This week, the Congressional Budget Office (CBO) issued a significant projection. They project that 10.9 million more people will be without health care coverage if the House’s version of the bill passes as is. The report further indicates that at least 3 million fewer people would qualify for food assistance as a result of the proposed cuts.
The CBO projects those making the most at the top of the income distribution would receive average tax cuts upwards of $12,000. On average, lower-income Americans would see tax increases of about $1,600. This imbalance has recently led lawmakers, activists and business leaders to ring alarm bells who worry the bill will deepen economic disparities.
The legislation goes beyond protecting frontline providers, including a provision to create a $25 billion fund focused on sustaining rural hospitals and other healthcare providers. Critics point out that this fund offers too little, too late. They claim it does not go far enough to mitigate the detrimental effects forecast from larger cuts to health care and social services.
In the meantime, as negotiations continue, Republicans are still working to figure out their own legislative strategy and manage deep divides in their own party. Senator Thom Tillis from North Carolina has indicated he will oppose the motion to proceed on the bill, already enough to sink it.
“I’m voting no on the motion to proceed” – Sen. Thom Tillis, R-N.C.
The new proposed limit on specific tax deductions has been raised to $10,000 as part of this overall, head-scratching plan. This significant change has received a mixed response from constituents and policy experts who are trying to gauge its likely effects on American taxpayers.
