Trump's Tax and Spending Bill: A Fiscal Tipping Point

The U.S. House of Representatives narrowly passed a tax and spending bill aligning with Donald Trump's agenda. This controversial legislation could add trillions to the national debt by enacting tax cuts and military spending while canceling green-energy incentives. It faces further scrutiny in the Senate.

The Republican-led U.S. House has narrowly passed a sweeping tax and spending bill that aims to fulfill much of President Donald Trump's policy agenda. This legislation, passed with a 215-214 vote, proposes tax breaks and increased military and border enforcement spending, but at the cost of adding approximately $3.8 trillion to the national debt over the next decade.

The bill, which Trump called 'one, big, beautiful bill,' now heads to the Senate, where it faces potential changes. The proposed legislation includes extending Trump-era tax cuts and rolling back green-energy measures introduced by former President Joe Biden. It also aims to tighten eligibility for certain health and food programs, a change that could impact millions of low-income Americans.

Critics argue the bill exacerbates the already concerning national debt levels, which have led to a credit rating downgrade. Investors are wary, resulting in a sell-off of U.S. assets. Despite resistance, particularly concerning Medicaid changes, Republican leaders argue the bill's passage is crucial for avoiding tax hikes and managing the debt ceiling.

(With inputs from agencies.)