President Donald Trump has cautioned that Americans will suffer massive tax hikes if the proposed bill does not pass. The bill is currently under discussion in Congress.
Trump Tries to Unite Republicans
Trump held a meeting with Republican lawmakers on Capitol Hill, aiming to bring consensus on a sweeping tax-cut bill. He seeks to navigate a split among Republicans into hardliners, moderates, and coastal state lawmakers who advocate for their constituents' ability to deduct state and local taxes.
Problems with the Big Bill
The bill aims to extend the tax cuts from 2017 and introduce tax breaks on income from tips and overtime pay. However, concerns are raised that these measures could significantly increase the budget deficit by trillions of dollars. A White House economic adviser claimed that cutting waste will mitigate the deficit's impact.
Impact on US Budget and Debt
The bill is projected to add between $3 to $5 trillion to the US national debt over the next decade. This has already led to a downgrade in the country's credit rating, with experts warning that debt could reach 134% of GDP by 2035, raising serious concerns about financial stability.
Republicans now face a critical choice as their internal disagreements complicate the bill's approval process. Trump continues to call for unity, but the outlook on this issue remains uncertain.
