Donald Trump tax bill gains approval in the most important coordination of the Key House Committee

Susan Heavy
| Reuters

Washington President Donald Trump's comprehensive tax-cut legislation, which is available for days of republican cuts on expenses, was approved on May 18 by an important congress committee in order to come later this week towards the possible farewell in the House of Representatives.

The campaign was a great victory for Trump and House Speaker Mike Johnson, after the Republican Conservatives blocked the legislative template of the evacuation of the household committee of the house because of a dispute, which included cuts for the Medicaid Healthcare program for Americans with lower income and the cancellation of tax credits for green energy.

Four Hardline members of the 21 Republicans of the Committee allowed legislation to be voted by “present” in a rare session on May 18. The legislation passed a 17-16 voice, with everyone Democrats voting against it.

The hardliners had spent a large part of the day in negotiations with the Republicans and officials of the White House in closed doors.

“The considerations will continue at this moment. They will continue until the week, and I suspect until the time when we made this large, beautiful bill in front of the house,” said the chairman of the house budget, Jodey Arrington.

Non-party analysts say that the legislative template that would extend the 2017 tax reductions would increase $ 3 trillion up to $ 5 trillion for the country's $ 36.2 trillion. Moody's quoted the rising guilt, which, according to his opinion, 134% of GDP was on the right track by 2035 to downgrade the US credit rating for his decision on May 16.

Finance Minister Scott Bessent dismissed the importance of the cut in two television interviews on May 18 and said that the legislation would boost economic growth, which would surpass what the nation owed.

“I don't have much credibility into the downgrade of the Moody,” Bessent told CNNS “State of the Union” program, the criticism of the White House repeated.

In the meantime, economic experts warn that the downgrading of the last three major loan agencies is a clear sign that the United States has too much debt and that legislators should cause sales to either increase or output less.

The Republicans of the Congress in 2017 also argued that tax reductions would pay themselves by stimulating economic growth. However, the impartial budget budget office estimates that the changes have increased the federal deficit by almost 1.9 trillion dollars over a decade, even if positive economic effects have been included.

On May 18, the representative of the House of Representatives, Mike Johnson, said that the chamber was still “on the right track” to say goodbye to the draft law that the budget committee wants to coordinate in a hearing at 10 p.m.

“We have had a lot of conversations. We will have more conducted today,” said Johnson about “Fox News Sunday Shannon Bream” when he was asked for Hard-Line Republicans, including representatives Chip Roy from Texas and Ralph Norman from South Carolina, who are calling for more expenses.

Medicaid cuts the eyes

Trump's Republicans have a majority of 220-213 in the house and are divided into how deeply the expenses for compensation for the costs of tax cuts are divided.

Hardliners want cuts in the Medicaid Health insurance program, a step that moderates and some Republican senators against the voters who chose Trump in November and whose support they need in 2026 if the congress can be controlled again.

The cuts of the law would take 8.6 million people of Medicaid, the common state program for the low-income Americans. The aim is also to control taxes for tips and some overtime – both the Trump campaign – promise – and at the same time increase defense spending and provide more funds for Trump's border lead.

The Republicans also contradict the deductibility of state and local taxes or salt, a topic of great importance for a handful of established companies from countries such as New York and California, which are of crucial importance for the close house majority of the party.

The downgrading from Moody, which in the middle of the ongoing economic uncertainty about Trump's tariffs, which have already burned global markets, into investors that could further fuel investors if Wall Street is reopened on May 19.

Trump and his administration have sworn to compensate for the budget because the Republican President took office again in January.

However, his attempts to reduce the government's expenditure by Elon Musk's Department of Government Efficiency have decreased far beyond their goals. It also remains unclear which income would be increased by tariffs, since Trump vibrates between higher interest rates and reduction in business.

Johnson said the downgrading had shown the need for tax bill.

“Moody's is not wrong,” said Johnson. “We are talking about historical expenses. I think that will help to change the trajectory for the US economy.”

He is striving to the house this week before May 26th Memorial Day. The legislator will later face a much harder period this summer if you tackle the US debt limit or have to trigger a potentially catastrophic failure.

The Democratic US Senator Chris Murphy from Connecticut said that the creditworthiness had reduced the Americans.

“That is a big deal. That means we are probably going to a recession,” Murphy told NBC's “Meet the Press”.

“This probably means higher interest rates for everyone out there who tries to found a company or buy a house. These boys ruthlessly lead the economy.”

(Additional reporting by Katharine Jackson, David Morgan and Davide Barbuscia; Editor from Scott Malone, Bill Berkrot and Stephen Coates)

Medicaid cuts the eyes

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