U.S. House GOP Pushes $4 Trillion Tax and Debt Package Through Key Committee After All-Night Session
House Republicans narrowly advanced former President Donald Trump’s sweeping tax and budget package early Wednesday, following a 17-hour debate that exposed stark partisan divides and internal GOP tensions.
The Ways and Means Committee approved the 389-page bill in a 26-19 party-line vote, teeing up one of the largest fiscal overhauls in decades.
The legislation aims to permanently extend Trump’s 2017 income tax cuts, add new breaks for overtime pay and tipped workers, and create tax-exempt “MAGA savings accounts” for minors.
Independent analysts project the plan would slash federal revenue by $4 trillion over a decade, exacerbating a national debt already at $36.2 trillion.
To offset partial costs, Republicans propose cutting $715 billion from Medicaid-disenrolling 7.7 million low-income Americans-and repealing Biden-era green energy subsidies.
Simultaneously, the package seeks to raise the debt ceiling by $4 trillion, bypassing negotiations with Democrats to avoid a potential default by mid-July.
Treasury Secretary Scott Bessent warned lawmakers last week that failure to act risks “upending global markets.” Internal GOP rifts emerged during the marathon session.
Moderates from high-tax states criticized the bill’s $30,000 cap on state and local tax deductions, while fiscal hawks questioned borrowing $4 trillion without deeper spending cuts.
Democrats unanimously opposed the measure, calling it a windfall for corporations and top earners funded by slashing safety nets. The proposal now moves to the Budget Committee, where Republicans face a tight timeline to reconcile competing priorities.
House Speaker Mike Johnson aims for a full chamber vote before Memorial Day, but Senate Republicans favor a $5 trillion debt hike, complicating passage.
If enacted, the plan would deliver immediate tax cuts ahead of the 2026 midterms while testing the GOP’s ability to govern with razor-thin majorities.
Analysts warn the debt surge could pressure interest rates, though supporters argue renewed growth will offset costs. With Medicaid cuts and university endowment taxes sparking outcry, the bill’s fate hinges on bridging ideological divides within the party.
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