Trump-supported GOP bill cuts taxes for wealthy, reduces Medicaid, increases military funding, and increases national debt by $3.3 trillion through 2034.
Top Highlights of the GOP Tax Bill:
- Permanently enacts 2017 Trump tax cuts for wealthy individuals
- Increases U.S. debt by $3.3 trillion over 10 years
- Cuts Medicaid, food stamp availability for millions
- Boosts border spending, defense, contains deportation quotas
- Damps Biden’s clean energy proposals, lowers credits
- Increases spying, slashes student loan repayment avenues
GOP House Passes Broad Tax Package with Thin Margin
The U.S. House of Representatives approved a contentious domestic policy bill on a 218-214 vote, sending through a far-reaching tax and spending package supported by Donald Trump. This almost-900-page legislation makes 2017-era tax reductions to mainly high-income Americans permanent while reducing funding for big social safety net programs like Medicaid and SNAP.
Embed from Getty Images2017 Trump Tax Cuts Made Permanent
The centerpiece of the bill is the long-term continuation of tax cuts enacted during Trump’s initial term. They disproportionately benefit high-income families. Those Americans making more than $120,000 a year are projected to receive on average $6,055 in tax savings each year, whereas lower-income families may experience losses averaging $560 through decreased exposure to healthcare and food benefits.
Effect on Medicaid: Tougher Rules and Spending Cuts
The bill enacts deep cuts to Medicaid, a program currently serving over 70 million Americans. It introduces mandatory work requirements for able-bodied adults under 65, with an 80-hour monthly minimum. Parents of children above 14 also need to comply. Failure to meet these conditions risks coverage loss, projected to affect nearly 12 million individuals by 2034.
A suggested $35 co-pay for Medicaid care and reversal of ACA-era expansion policies might drive more Americans out of the program.
SNAP Benefits and Food Security at Risk
The bill imposes stricter eligibility standards for the Supplemental Nutrition Assistance Program (SNAP). States are now required to pay a share of benefits, particularly when their error rates are higher than 6%. This action may deny more than 3 million people access to food stamps through 2034.
Student Loan Repayment Becomes More Expensive
The bill undercuts Biden’s income-based repayment reforms, raising the cost for borrowers. An average college graduate who earns $80,300 a year might now be paying as much as $2,929 more a year. The revisions disproportionately affect middle-income families using education for upward mobility.
Clean Energy Tax Credits Rolled Back
Most of the clean energy incentives and tax credits in the 2022 Inflation Reduction Act risk being canceled. These incentives spurred more than $321 billion in clean energy investments and anticipated another $522 billion. Projects based on solar, wind, or electric vehicle tax incentives will now be delayed or get canceled, particularly in Republican districts.
Electric car purchasers forfeit tax incentives after September, while tax credits for domestic solar and wind projects dwindle significantly. The only incentives left are for metallurgical coal, which is applied in steel production.
Higher Military Budget and Border Patrol
While social services are cut back, the bill spends more than $350 billion on defense and border patrol. It provides:
- $25 billion for ship construction and military systems
- $1 billion for border security enhancements
- Money to hire 10,000 ICE officers with $10,000 signing bonuses
- Ability to deport up to 1 million people per year
The legislation pays for a border wall expansion and adds 100,000 immigration detention beds.
National Debt Rises to $3.3 Trillion by 2034
The bill will increase the national debt by $3.3 trillion in the coming decade, according to the Congressional Budget Office. The estimate takes into account expiring tax breaks being extended indefinitely. Critics say this strategy is similar to the 2017 strategy of installing sunset clauses only to repeal them subsequently.
If debt becomes GDP-equivalent at 130%, it would be the highest in U.S. history and put subsequent generations under a huge repayment burden.
Middle-Class Families Lose More Than They Gain
The bill offers a massive wealth transfer from lower-income groups to wealthy families. While the top quintile experiences a 2.3% increase in income, poorest Americans experience cut benefits, increased healthcare expenses, and higher tax payments.
Other Provisions Mirror GOP Priorities
Aside from economics, the bill contains:
- Establishment of ‘Trump Accounts‘ for kids with $1,000 initial deposits
- $40 million in funding to construct ‘National Garden of American Heroes‘
- Excise tax on university endowments and foreign remittances
- Ban on Medicaid reimbursements to providers that provide abortion services
Artificial Intelligence Regulations Removed
A last-minute amendment kills federal limits on state AI regulations. Republican governors call for the right to adopt their own AI rule models. The Senate agrees with a 99-1 vote.
Healthcare and Rural Hospitals Receive Limited Relief
Rural hospitals receive an eleventh-hour funding boost to $50 billion over five years amid fears of provider tax reductions. Federal pandemic response panels get $88 million, and Artemis moon missions commit billions to future exploration.
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The GOP spending and tax bill solidifies Trump-age reductions, increases funding for the military, enforces rigid limits on Medicaid and SNAP, cuts student assistance, and rolls back green energy targets. While those who are more affluent get huge tax benefits, millions lose healthcare and pay more to live. At an estimated $3.3 trillion added to national debt, this policy constitutes one of the most significant economic overhauls in recent U.S. history.
Trump’s new GOP-supported bill cuts Medicaid and student loans, increases defense spending, and makes wealthy tax breaks permanent. Clean energy incentives grow weaker, and $3.3 trillion adds to American debt. Lower-income Americans lose the most as national priorities change.