Non-partisan analysts say Bill will add 3-5 tons to the country’s 36.2 tonnes of debt over the next decade.
President Donald Trump’s sweeping tax bill has won approval from a major committee of Congressional Committees to move forward towards a potential passing in the House later this week.
The unusual Sunday night vote came as a major victory for Trump and House Speaker Mike Johnson after Hardline Republican conservatives on Friday blocked the House Budget Committee liquidation over conflicts, including cuts to the Medicaid healthcare program for low-income Americans and the abolition of the green energy tax.
Four hardline members of the committee’s 21 Republicans allowed the law to move forward by voting “now.” The bill was passed 17-16 votes, with all Democrats voting against it.
The hardlines spent most of the day negotiating closures with House Republican leaders and White House officials.
Johnson met with Republican lawmakers just before the meeting and told reporters that the agreed changes were “a small revision.”
Republican House budget president Joe Day Arlington said he hopes deliberations will continue into the week “until we put this big and beautiful bill in front of our home.”
Non-partisan analysts say the bill will extend the 2017 tax cuts, a legislative victory for Trump’s first signing period, add between $3 trillion to $5 trillion in national debt over the next decade.
Credit rating agency Moody’s is said to be on track to reach 134% of GDP by 2035 due to its decision to downgrade its US credit rating on Friday.
U.S. Treasury Secretary Scott Bescent said in an interview with CNN on Sunday that the bill would promote economic growth sufficient to offset debt growth, adding that it didn’t give much credit to Moody’s downgrade.
Economic experts warn that the downgrade, following previous downgrades by Fitch Ratings and S&P, is a clear indication that the US has too much debt and lawmakers need to increase their income or reduce their spending.
Trump Republicans have a majority of 220-213 in the House, splitting about how deeply they cut their spending to offset the costs of tax cuts.
Hardliner wants Medicaid cuts, saying that it will hurt voters who elected Trump in November, will fight back and hurt the support they need when Congressional control comes back in 2026.
The bill’s cuts would drive 8.6 million people out of Medicaid.
It also aims to eliminate taxes on both hints and overtime income for both hints and Trump’s campaign promises, but it also increases defense spending and provides more funding for Trump’s border crackdown.
Connecticut Democratic Sen. Chris Murphy said the credit rating cuts spelled out the troubles of Americans.
“That’s a big deal. It means we’re likely heading into a recession,” Murphy told NBC’s conference.
“These people run the economy recklessly.”
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