May 19, Reference Message Network report, according to a Reuters report on May 18, US President Donald Trump's comprehensive tax cut proposal has been stalled for several days due to internal struggles within the Republican Party over spending cuts, but the proposal won approval from a key congressional committee on May 18 and is expected to pass in the House of Representatives later this week.
The report said that this was a major victory for Trump and House Speaker Johnson. Previously, hardline Republican conservatives had blocked the proposal from passing through the House Budget Committee on the 16th. This was because the proposal required cutting spending on Medicaid, which provides assistance to low-income Americans, and also proposed eliminating green energy tax credits, which sparked controversy.
It was reported that at an unusual late-night meeting held on May 18, four hardliners among the 21 Republican members of the House Budget Committee abstained, allowing the proposal to proceed. The bill passed with a vote of 17:16, with all Democrats voting against it.
The report further noted that analysts said this proposal, which would extend the tax cuts of 2017, would add between $3 trillion and $5 trillion to the US debt of $36.2 trillion over the next ten years. Moody's said that the increase in debt was one of the reasons for its decision to downgrade the US credit rating on the 16th.
The report mentioned that US Treasury Secretary Basente downplayed the importance of the downgrade of the US credit rating in a television interview on the 18th, stating that Trump's tax cut proposal would stimulate economic growth, which would exceed the pace of the debt.
Basente reiterated the White House's criticism, telling CNN: "I don't put much faith in Moody's downgrade." (Compiled by Yang Xinpeng)
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