The massive tax cut and spending bill strongly promoted by U.S. President Trump has encountered significant obstacles. When the House Budget Committee held a vote on the 16th, hardline conservatives within the Republican Party were dissatisfied with the scale of fiscal expenditure cuts. As a result, five Republican members of Congress defected, causing the bill to be rejected with a vote of 16 to 21, failing to pass smoothly. This highlights that Trump will still face divisions and challenges within his party when promoting major fiscal policies.
This bill, which Trump called "One Big, Beautiful Bill," is a comprehensive package of tax cuts and expenditure reductions covering 11 areas of fiscal budget expenditures. It mainly aligns with Trump's legislative agenda, including continuing the individual tax cuts in the 2017 Tax Cuts and Jobs Act during Trump's first term, with expected tax cuts amounting to $5 trillion or more.
However, fiscal hawks within the Republican Party believe that the bill does not go far enough in cutting government welfare programs such as Medicaid. Ultimately, the House Budget Committee rejected the bill with a vote of 16 to 21, preventing it from being sent out of the committee. In the vote, five Republican members defected and voted against it alongside all Democratic members.
This outcome was extremely rare because committees typically only conduct procedural reviews before sending bills to the floor. Chip Roy, a representative of the Republican hardliners and a Texas federal congressman, stated that this bill failed to meet the goals we set regarding deficits. We are issuing empty promises, and our next generation will pay the price."
Two hours before the vote, Trump publicly pressured his party through his "Real Community" platform, calling for unity to pass the bill and criticizing opponents as "attention-seekers." He emphasized, "Stop talking and get this done!" But ultimately, he could not prevent the bill from being rejected in the budget committee.
In response to the setback of the bill, Republican House Speaker Johnson promised to coordinate party positions over the weekend to seek a compromise solution. Johnson needs to appease both fiscal hawks and moderate members seeking greater tax relief for blue states. Moderate members hope to increase the state and local tax (SALT) deduction cap to alleviate pressure on high-tax districts, while fiscal hawks insist on significantly cutting government expenditures.
Johnson hopes to send the bill to the Senate before Memorial Day on May 26. However, even if the bill eventually passes the House, it will face significant adjustments in the Senate. Several senators, including Republican Josh Hawley, have clearly expressed opposition to cutting Medicaid, adding more uncertainty to the bill's future.
Original source: https://www.toutiao.com/article/7505641297892327990/
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