Donald Trump prevails: Congress paves away for tax cuts

Donald Trump prevails: Congress paves away for tax cuts

Budget resolution
Trump prevails: Congress clears away for tax cuts






Donald Trump can breathe a sigh of relief: the congress approved a budget resolution that is important for its tax plans – but only with a wafer -thin majority.

The US Congress has cleared the way for comprehensive tax cuts that President Donald Trump had announced in the election campaign. After the Senate, the House of Representatives also passed a household resolution on Thursday, which is intended to enable lower tax rates. Trump spoke of a “great message” in the online service Truth and promised the “greatest tax cuts in US history”.

The House of Representatives approved the budget resolution with a narrow majority of 216 to 214 votes. It enables the responsible congress committees to implement Trump’s plans. Among other things, the massive tax cuts from Trump’s first term (2017 to 2021) are to be extended, which expire at the end of the year.

Donald Trump wants to make government more efficient

The Senate had already approved the resolution on Saturday. Trump’s Republicans have a majority in both congress chambers. In the House of Representatives, however, there are more household -political hardliners than in the Senate. They had requested significantly higher savings to put Trump’s plans.

The resolution now adopted provides for savings of $ four billion (around 3.63 billion euros). The spokesman for the House of Representatives, Mike Johnson, said: “We want to make the government more efficient, more effective and slimmer for the American people”.

Democrats warn prior to cuts

At the same time, the US debt limit is increased by five trillion dollars to prevent the country from paying out. Experts expect new costs of this size in a decade. Because in addition to tax reliefs, additional expenses for border protection and energy supply are also planned.

The Democrats in the congress criticized Trump’s plans. They argue that only rich reductions would benefit from the tax cuts. They also warn of massive cuts in social security and the Medicaid health insurance program for US citizens with less income.

AFP

EPP

Source: Stern

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