Priyanka Tiwari
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Prospects for implementing Trump’s proposed tax cuts got better as the House Republicans moved a step forward by pushing a budget draft on Tuesday which included significant reductions in Medicaid funding.
Thanks to a barrage of last-minute phone calls from Trump to uncertain Republicans, Johnson was able to get past the concerns of fiscal conservatives apprehensive about the increase in deficit spending, as well as, many swing district lawmakers that were focused on cuts to food and health care aid for the poor and disabled.
The vote does not assure that expiring 2017 Trump tax cuts will be extended. The Senate is expected to amend changes to the House proposal before passing it, which may create fresh issues for some House Republicans.
This portion of the measure was questionable for a long time during the day. Unable to resolve a quartet of holdouts, the Republicans did delay, and then set about scrapping an initially scheduled vote, only to change their minds minutes later by summoning legislators for a vote. Three of the four Republicans who opposed the budget conception earlier in the day chose to vote yes at the end of the day.
The House budget portion would make possible tax deductions up to $4.5 trillion that would, in effect, financially support the extending of the cuts that are about to expire. However, this budget does not have sufficient funds to support Trump’s tax reduction promises. Even though claiming to cut spending by $2 trillion over the span of ten years, this measure would still add to the budget deficit.
By spending another $4 trillion, the US debt will be increased by four trillion. In turn avoiding a threatening payment default during this summer.
Some Senate Republicans have expressed their objections to Trump's promises. However, nearly all of them would request further tax cuts, as well as have checks in place for the impact of the cuts on safety-net programs.
Thomas Massie, the only Republican from Kentucky, was present when the plan to alter the budget was voted on and voted against the changes with all of the other Democrats. The rest of the Republicans voted in favor, which led to the bill being passed by a vote of 217 to 215.
An alteration to the budget also plans cuts amounting to $2 trillion that is directed to safety-net programs like Medicaid and food stamps along with increased spending on border security and military defense by $300 billion.
Of the estimated $880 billion that would have to be cut from the budget, nearly half would need to stem from programs pertaining to the Medicaid and Obamacare health facilities that come under the supervision of the Energy and Commerce Committee.
While the budget outlines the goals, spending cuts remain unspecified. Republican leaders have been in favor of performing work requirements on Medicaid and also increasing supervision on improper payments. However, these measures would not lead to sufficient savings, which is worrying for the swing-district Republicans cuts having to be made to benefits and payments to providers.
Johnson remarked as he tried to win over moderates in his caucus: “It doesn’t even mention Medicaid in the bill.”
Budget blueprints are the first phase in a longer process for the Republicans to circumvent Senate Democrat control over taxation and spending legislation. Without a budget, Republicans would have to win over at least some Democratic senators to pass those bills.
Elon Musk, who is rallying behind Trump’s Department of Government Efficiency, gelled resistance from fiscal hawks due to sinking doubts over the plan being bad. Musk said the plan “sounds bad” on a post he made on X of Sunday night.
After leaders in a closed door meeting admitted that the plan would add to the deficits, Massie informed reporters he changed from “no” to shifting “yes.” Even with having optimistic assumptions about the economy.
As per the evaluation of the independent watchdog the Committee for a Responsible Federal Budget, the budget would incur a deficit of almost $3 trillion within a decade based on conventional scoring methods.
The entire Democratic faction contested the budget claiming that it is a tax cut for the richer class at the cost of the underprivileged people’s welfare assistance programs.
One of the foremost Democrats on the budget, Brendan Boyle from Pennsylvania, told the press that it is impossible to achieve the $880 billion cut in health related spending while simultaneously not cutting Medicaid.
“There will, without a doubt, be hundreds of billions of dollars in Medicaid cuts — the American history’s biggest Medicaid cuts. The math is quite simple,” said Boyle.
The expiration date for the tax cuts for both individual citizens and businesses put into place in the year 2017 is set for December 31. Congress has until now to come up with a solution.
