On Thursday, Republicans successfully pushed President Donald Trump’s tax and spending cut bill through the House, obliging the GOP’s self-imposed deadline of July 4th. This expansive 900-page legislation comprises numerous Republican priorities such as tax reliefs, spending reductions, and increased funding for national defense and deportations. Although the Senate approved the bill (with Vice President JD Vance breaking the tie), Democrats stood in opposition but lacked the power to stop the measure. The GOP insists the bill will prevent a massive tax hike after the expiration of Trump’s previous term tax breaks in December, but it will result in a substantial loss for the poorest Americans and a significant gain for the wealthiest households.
Among the bill’s highlights are business tax cuts, proposals for reducing Medicaid and food aid, an increase in child tax credits, and adjustments to the income levels qualifying for specific deductions. Immigration remains a central point with the allocation of $350 billion for Trump’s border security and deportation policies. The bill also targets clean energy tax breaks, reduces a gun tax, and restricts Medicaid access to abortion providers, all reflecting Republican priorities.
Controversial provisions include nearly eight trillion in tax cuts over the next decade and significant cuts to Medicaid and SNAP benefits, which could leave millions more Americans uninsured and ineligible for food stamps. Republicans argue their measures aim to improve safety net efficiency and curb waste. There is also a push to cut back on state and local tax deductions. The legislation’s final price tag is projected to add $3.3 trillion to the deficit, leading to debate on the true fiscal impacts and accusations of “magic math” from Democrats and some non-partisan fiscal groups.
Source: https://www.euronews.com/business/2025/07/04/what-is-in-trumps-tax-and-spending-bill-that-will-soon-become-law
