The president of the United States, Donald Trumpcelebrated on Thursday the approval of its budget law, qualifying it as an impulse for the US economy that will lead to the country “Like a space rocket”. These statements made them before traveling to Iowa, where the celebrations will begin for the 250th anniversary of the Nation, to be held in 2026.
The House of Representatives approved the initiative with a narrow margin: 218 votes in favor against 214 against. Among the opponents were two Republican congressmen, who expressed concern about the impact of the norm on public debt and programs related to renewable energy. Despite this, Trump stressed that it is “the largest law of its ever signed” and reiterated that It represents “the greatest fiscal cut in history.” In addition, he assured that he will have positive effects for border security with Mexico, a legislative achievement that he described as unprecedented.
Donald Trump gets a tight victory in Congress with his new tax cuts package
With this law, the republican leader consolidates part of his campaign agenda towards the 2024 elections: Permanently extends the 2017 tax cuts, introduces new tax exemptions and channels funds to strengthen their immigration policies.
The Congress Budget Office (CBO), a non -partisan organism, estimates that the legislation will add U $ 3.4 billion to the national debt -which already reaches the U $ 36.2 billion– During the next decade.
In detail, a reduction in fiscal income is expected by U $ 4.5 billion and a cut of expenses of U $1.1 billionmostly in health programs, food assistance and subsidies for renewable energy.
In addition, the package includes an extension of U $ 5 billion from the debt roof, which moves away – now – the risk of a technical default.
Democratic criticisms and external warnings
The Democratic bench voted in block against and denounced the project as a “Wealth transfer” towards the most privileged sectors. “This bill harms common Americans to give away massive tax exemptions to billionaires”the Democratic leader sentenced Hakeem Jeffrieswho made a marathon speech of eight hours and 46 minutes, the longest in the history of the camera.
Fiscal analysts and independent agencies warned that the greatest benefits will fall on the richest taxpayers, while low and medium income families will be affected by the reduction of assistance programs that, in many cases, exceed the tax advantages granted.
Even from the Financial Front alerts were lit: Moody’s recently reduced the credit rating of US debt, pointing out the fiscal deterioration. Some international investors already They cautiously evaluate the purchase of treasure bondsgiven the sustained increase in indebtedness.
Trump played an active role during negotiations, exerting direct pressure on legislators. “Republicans, this should be an easy affirmative vote. Ridiculous!”, He wrote on social networks during the debates. Finally, Only two of the 220 Republican deputies broke ranks and voted against the project.
Source: Ambito
