Trump’s Tax Cuts Bill Advances for Vote Despite CBO Deficit Warning/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ House Republicans are racing to pass Trump’s sweeping tax bill this week. A new CBO report warns it will add $3.8 trillion to the deficit. The bill includes tax cuts, program reductions, and new spending on defense and immigration.
Trump Tax Cuts Bill Quick Looks
- House GOP aims for vote by Wednesday on Trump’s tax and spending package.
- Trump’s $3.8 trillion tax cuts proposal advances despite deep intra-party divisions.
- CBO estimates bill adds $3.8 trillion to deficit over 10 years.
- Cuts to Medicaid, food stamps, and green energy offset part of the lost revenue.
- Low-income households would lose aid, while wealthier families gain, per CBO.
- Bill includes $350 billion for defense, deportation, and the Golden Dome program.
- Expands tax deductions and exempts tips, loan interest, and some overtime.
- Work requirements for Medicaid and SNAP would impact millions.
- 8.6 million may lose health coverage under Medicaid reforms.
- Lawmakers from high-tax states push for bigger SALT deductions.
- Trump calls dissenters “fools,” but conservative holdouts remain unconvinced.
Deep Look: House GOP Races to Deliver Trump’s Tax Cuts Amid Fiscal Fallout
WASHINGTON — May 21, 2025 — House Republicans are pushing full steam ahead with President Donald Trump’s massive tax cut bill, hoping to pass it by Wednesday despite fresh warnings from the Congressional Budget Office that the proposal would add $3.8 trillion to the federal deficit over the next decade.
After an all-night committee session, Republican leadership and the White House are scrambling to secure votes within their slim majority to pass what Trump has dubbed the “One Big Beautiful Bill Act.”
A Test of Unity for Trump and the GOP
President Trump, eager to claim a signature legislative win, visited Capitol Hill Tuesday to urge his party to unify.
“Anyone who doesn’t vote for this bill is a fool,” Trump reportedly told Republicans during a closed-door meeting.
But fissures within the GOP remain. Conservatives want deeper spending cuts, especially to Medicaid, while moderates balk at healthcare rollbacks and centrist Republicans from high-tax states are demanding more generous state and local tax (SALT) deductions.
What’s in the Tax Bill?
The more than 1,000-page package includes:
- Permanent extensions of Trump’s 2017 tax cuts
- New tax exemptions for:
- Tipped income
- Auto loan interest
- Overtime wages
- Higher standard deduction ($32,000 for joint filers)
- Boosted child tax credit ($2,500 per child)
- New senior deduction ($4,000 for certain retirees)
Trump says the bill will offer the “largest tax cut in U.S. history.”
Spending Cuts and New Spending
To help offset some of the revenue loss, Republicans propose:
- $1 trillion in program cuts, including:
- Medicaid work requirements (starting in 2027)
- SNAP (food stamp) work requirements for more recipients
- Expansion of eligibility criteria for work mandates, including parents of children as young as 7
Despite the proposed cuts, the bill adds:
- $150 billion in new defense spending, including for Trump’s “Golden Dome” missile defense
- $200 billion for immigration enforcement and mass deportation efforts
Winners and Losers: CBO’s Warning
The nonpartisan Congressional Budget Office issued a sobering report:
- Low-income Americans would see reductions in benefits
- Wealthier households would gain significantly
- An estimated 8.6 million people would lose health coverage
- 3 million fewer people would receive SNAP benefits monthly
SALT Deduction: A Key Flashpoint
- Current cap: $10,000
- GOP proposal: Raise to $30,000 for joint filers under $400,000 income
- SALT Caucus asks for: $62,000 (single) / $124,000 (joint)
Opposition Mounts — From Both Sides
House Democrats are unified in opposition. Leader Hakeem Jeffries condemned the bill as a “cruel and unconscionable” gift to the rich.
“The more the public learns about it, the more appalled they’ll be,” Jeffries said.
Even some GOP conservatives aren’t swayed. Rep. Thomas Massie (R-Ky.) remains a firm no.
Rep. Andy Harris (R-Md.), chair of the House Freedom Caucus, warned: “We’re still a long ways away.”
Senate Road Ahead
If passed by the House, the bill will head to the Senate, where further changes are expected. Senate Republicans are signaling that Medicaid provisions, green energy repeals, and SALT deductions will be contentious.
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