WASHINGTON — The Republican-controlled US House of Representatives has narrowly
passed a sweeping tax and spending bill, despite prior warnings from budget
groups that the legislation would significantly increase federal debt.
The bill was approved by a vote of 215 to 214, Xinhua
news agency reported.
All Democratic lawmakers and two Republican lawmakers
voted against it, while one Republican lawmaker voted "present,"
neither for nor against the bill.
The bill extends the corporate and individual tax cuts
enacted during US President Donald Trump's first term in 2017, while adding new
tax breaks for tips, overtime and car loans.
It also increases defence spending and allocates
additional funds for deporting immigrants.
Additionally, the bill repeals many green energy policies
championed by former US President Joe Biden and raises the eligibility
thresholds for low-income individuals to access healthcare and food assistance
programs, in an attempt to reduce federal expenditures.
The bill is sent to the Republican-controlled Senate,
where it will likely face modifications.
"THE ONE, BIG, BEAUTIFUL BILL has PASSED the House
of Representatives! This is arguably the most significant piece of Legislation
that will ever be signed in the History of our Country!" Trump wrote on
his social platform Truth Social.
Meanwhile, budget groups have expressed deep concern.
"The House's reconciliation framework has been an
insult to fiscal responsibility, adding more than $3 trillion to the debt and
setting up a massive cliff of tax cuts and spending expirations that could cost
trillions more to extend," Maya MacGuineas, President of the Committee for
a Responsible Federal Budget, said in a statement on Wednesday.
According to the latest data from the Treasury
Department, the US national debt has surpassed $36.2 trillion.
With the House majority standing at 220-212, Speaker Mike
Johnson had little room for dissent and made last-minute concessions to satisfy
various Republican factions.
Johnson described the bill as "generational, truly
nation-shaping legislation," emphasising its significance in shaping
America's future.
The 1,100-page bill enshrines much of Donald Trump's
populist campaign promises, including new tax breaks on tips and car loans,
increased military spending, and enhanced border enforcement.
It extends the corporate and individual tax cuts enacted
in 2017 and repeals many green-energy incentives introduced under former US
President Joe Biden.
However, the Congressional Budget Office (CBO) projects
that the tax-cut bill will add approximately $3.8 trillion to the federal debt
over the next decade, on top of the existing $36.2 trillion.
