Trump wins in the House with billionaire and controversy law

The approved plan includes benefits to rich, poor punishments and a brutal increase in US debt over the next ten years, according to CBO

The Chamber of Representatives, controlled by Republicans, approved on Thursday (22) a broad bill on taxes and spending by only one vote of difference. The proposal would implement much of President Donald Trump’s political agenda and leave the country with trillion additional dollars in debt.

The project would fulfill several populist electoral promises from Trump, granting new fiscal benefits for tips and automotive loans, as well as increasing spending on the military sector and border surveillance. According to Non -Party of Congress Budget Office (CBO)the measure will add about $ 3.8 trillion to federal debt, which is currently $ 36.2 trillion over the next ten years.

“This is undoubtedly the most significant legislation that has already been signed in the history of our country!” Trump wrote on his social networks.

The package was approved by 215 votes to 214, after a marathon of efforts that kept parliamentarians discussing the project for two consecutive nights.

All the Democrats of the House and two Republicans voted against the proposal, while another Republican voted “gift”, that is, if he refrained from voting for or against. Another republican lost his vote because he was sleeping.

With a tight majority from 220 to 212, Mayor Mike Johnson could not lose more than a few votes among his co -religionists and made several last -minute changes to satisfy different republican wings.

“The House approved historical, truly transformative legislation for the nation,” said Johnson.

Baptized by Trump as a “great and beautiful law”, the proposal now goes to the Senate, also controlled by the Republicans, where it should undergo changes over weeks of debate.

The project, with 1,100 pages, would extend corporate and individual tax cuts approved in 2017 during Trump’s first term, revoke various clean energy incentives instituted by former Democratic President Joe Biden and restricts conditions for access to health and food programs for the poorest. Trump’s campaign would also fund illegal immigration, including the increase of tens of thousands of border agents and the creation of the ability to deport up to one million people a year. In addition, it would relax the regulatory rules on firearms silencers.

Despite growing concerns about American debt – which reached 124% of GDP and led to the reduction in US investment degree by Moody’s last week – the project was approved.

The US government has recorded budget deficits every year of this century, with both republican and democratic administrations failing to align revenue expenses.

According to the CBO, last year, every dollar spent by the US government, one hundredth was intended to pay interest on debt-a higher than expenditure on the military sector. This percentage tends to rise to one in six dollars over the next ten years, as the population ages and grows health and retirement costs, even without considering the impact of Trump’s budget project.

“Defining a course towards Iceberg”

Investors, uncomfortable with the US fiscal situation and Trump’s erratic movements in relation to tariffs, are increasingly selling the dollar and other American assets, pillars of the global financial system. The futures of US actions climbed slightly after the approval of the project, while income from US Treasury titles also rose.

“We are not simply rearranging chairs on Titanic tonight. We are putting coal on the boiler and defining a direct course towards Iceberg,” said Kentucky Deputy Thomas Massie, one of the two republicans who voted against the project.

Debt growth has urgently given the project’s approval by Republicans, as it raises the federal debt ceiling by $ 4 trillion, thus avoiding the risk of default, something authorities warn that this summer in the US (mid -year).

Republicans also argue that if the project was not approved, there would be an effective tax increase for many Americans, as the 2017 Trump tax courts would expire at the end of the year.

Party’s most radical sectors required deeper cuts in expenses to reduce budget impact, but faced resistance from more moderate parliamentarians, who feared that it would hurt too much 71 million low-income Americans enrolled in the Medical Assistance Medical Program.

Johnson made changes to meet conservative demands, anticipating to the end of 2026 (two years ahead of expected) the entry into force of new work requirements for beneficiaries of Medicid, which would take millions of people from the program, according to the CBO. The project would also punish states that expand medicaid in the future.

In addition, Johnson has expanded a tax deduction related to the payment of state and local taxes – a priority of some moderate republicans representing states with high taxes such as New York and California.

The Democrats, on the other hand, criticized the project, saying that it disproportionately benefits the richest while cutting benefits to US workers. According to the CBO, the proposal would reduce the income of the poorest 10% in the US and increase the income of the richest 10%.

“This project is a blow, a fiscal scheme created to steal from you, American people, and give Trump’s millionaire and billionaires friends,” said Democratic MP Jim McGovern.

With information from Reuters*