U.S. Tax Bill Sparks Tensions Amid Credit Downgrade

The Republican-dominated Congress is advancing President Trump's tax-cut bill despite Moody's downgrading the U.S. credit rating. The bill could significantly increase national debt while cutting Medicaid and eliminating certain taxes. Split opinions persist among Republicans on spending offsets and economic growth predictions.

The U.S. Congress, controlled by Republicans, is pushing forward President Donald Trump's tax-cut bill while Moody's downgrade looms over the federal government. Economic aides remain unfazed by the downgrade, despite it signaling the nation's mounting debt issues as Republicans debate spending cuts.

Experts warn the bill will inflate the national debt by $3 trillion to $5 trillion. Meanwhile, conflicting viewpoints within the Republican Party affect legislative proceedings as they face criticism over potential Medicaid cuts and unresolved strategies to compensate for fiscal impacts.

Moody's downgrade underscores broader economic uncertainties linked to Trump's tariffs, which have agitated global markets. Despite this, the administration remains resolute on pursuing the budget balance. The looming U.S. debt ceiling adds urgency to congressional discussions.

(With inputs from agencies.)