Economic Rules Hub
  • World
  • Politics
  • Business
  • Investing
Home Politics Trump budget bill with $4.5T in tax cuts survives key hurdle despite House GOP infighting
Politics

Trump budget bill with $4.5T in tax cuts survives key hurdle despite House GOP infighting

by admin February 14, 2025
February 14, 2025

A mammoth bill advancing a broad range of President Donald Trump’s policy goals survived a key hurdle on Thursday, putting Republicans closer to their goal of passing a bill by sometime in May.

The legislation passed the House Budget Committee on a party-line 21 to 16 vote and is expected to be taken up by the entire chamber for a floor vote later this month.

It comes despite eleventh-hour negotiations that had the bill’s eventual passage in question even as the committee met to discuss the text on Thursday morning.

The 45-page resolution directs various House committees to find a sum of at least $1.5 trillion in spending cuts, with $300 billion in new spending allocated toward the border, national defense and the judiciary. 

It also directs $4 trillion toward raising the debt limit, and it includes $4.5 trillion to extend Trump’s 2017 Tax Cuts and Jobs Act (TCJA) and other tax provisions pushed by the president for the next 10 years.

House and Senate Republicans are aiming to use the budget reconciliation process to pass a broad range of Trump policy goals, from border security to eliminating taxes on tipped and overtime wages.

By lowering the threshold for passage in the Senate from two-thirds to a simple majority, it will allow the GOP to use their razor-thin majorities to get legislation signed into law with zero Democratic support, provided the measures included relate to the budget and other fiscal matters.

Conservative spending hawks on the House Budget Committee had demanded assurances that Republicans would seek to cut spending as deeply as possible in the reconciliation process, particularly to offset new spending on Trump’s tax priorities.

House Budget Chairman Jodey Arrington, R-Texas, told reporters early Thursday afternoon that committee Republicans came to an agreement on an amendment that would win over holdouts, however.

The proposal would mandate a corresponding reduction in the $4.5 trillion tax allocation if Republicans failed to cut at least $2 trillion in spending elsewhere.

Conversely, if spending cuts exceeded $2 trillion, it would increase the amount of money directed toward tax cuts by the same amount.

‘The amendment that will come up is a good amendment,’ Rep. Ralph Norman, R-S.C., a Budget Committee fiscal hawk who had issues with the original text, told Fox News Digital. ‘It’s common sense. It’s doing what we said we’d be doing.’

The House advanced its proposal after being forced to punt the committee vote last week in the face of disagreements over where to set the baseline floor for spending cuts.

Senate Republicans advanced their own plan in the meantime, passing a narrower bill on Wednesday night that included new funding for the border and defense but would leave Trump’s tax cuts for a second package.

Speaker Mike Johnson, R-La., called that bill a ‘nonstarter’ in the House.

But while the House’s bill passed a critical test on Thursday, it’s just the first step in a long process.

Passing a budget resolution then sends instructions to other committees to seek cuts and policy changes in their respective jurisdictions, before those proposals are added back to one large bill.

The House and Senate must also agree on a compromise between their two versions and pass identical pieces of legislation before they can be sent to Trump’s desk.

Republicans have a three seat majority in the Senate and a one seat majority in the House, meaning they can afford precious little dissent among themselves to pass a final bill.

This post appeared first on FOX NEWS

0
FacebookTwitterPinterestEmail
previous post
American Rare Earths: Advancing One of the Largest REE Deposits in North America
next post
RFK Jr. sworn in as Health and Human Services secretary

Related Posts

Trump launches precision strikes against Iran. Triumph or trap?

June 22, 2025

Trump attacks Iran nuclear sites: Are our troops in danger...

June 22, 2025

Misdirection and ‘deception’ likely key in Trump admin’s surprise Iran...

June 22, 2025

‘Not constitutional’: Congress invokes new War Powers Resolution to reject...

June 22, 2025

PHOTO GALLERY: Trump in Situation Room during Iran strikes

June 22, 2025

Trump earns bipartisan praise for decisive action against Iran’s nuclear...

June 22, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • ‘Life is full of unexpected surprises’: People trying to call Iran meet mysterious voice message

      June 22, 2025
    • Pakistan nominates Trump for Nobel Peace Prize, praising ‘stellar statemanship’

      June 22, 2025
    • ‘It’s a scary time to be here right now’: Americans stuck in Israel are desperate to get out

      June 22, 2025
    • Belarus frees key opposition figure Sergey Tikhanovsky following rare visit from top US envoy

      June 22, 2025
    • Negotiations are ‘meaningless’ unless Israel stops attacks, Iran government spokesperson tells CNN

      June 22, 2025

    Categories

    • Business (1,416)
    • Investing (3,499)
    • Politics (4,690)
    • World (4,582)
    • Email Whitelisting
    • Terms and Conditions
    • Privacy Policy
    • Contacts
    • About us

    Disclaimer: EconomicRulesHub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 EconomicRulesHub.com | All Rights Reserved

    Economic Rules Hub
    • World
    • Politics
    • Business
    • Investing