Trump gains momentum in the House with his ambitious tax plan
President Donald Trump secured a narrow legislative win on Thursday as the House of Representatives passed his flagship tax bill with a 215 to 214 vote. The measure, aimed at preventing tax hikes before year’s end, also includes a $4 trillion debt ceiling expansion, raising concerns about its impact on the federal deficit.
The Senate Emerges as the Real Battlefield
While House approval marks a political milestone for Trump, the bill’s fate remains uncertain in the Senate. Several Republican senators have already signaled they will demand major revisions—especially given the Treasury Department’s warning that the U.S. could face a default as early as August or September.
Trump Mobilizes GOP with Unprecedented Pressure Campaign
From Capitol Hill visits to late-night calls, Trump launched a sweeping campaign to rally Republican support. On Truth Social, he called the law “the most consequential legislation in our nation’s history” and urged the Senate to send it to his desk “without delay.” His budget office described any Republican opposition as a “supreme betrayal.”
GOP Faces Internal Divisions Over Social Spending Cuts
House Speaker Mike Johnson led tense negotiations. While the far-right pushed for deeper cuts, lawmakers from vulnerable districts resisted reductions to programs like Medicaid. The final version reflects a fragile compromise that left both party factions dissatisfied.
Gabbard Ousts Senior Intelligence Leaders After Dispute Over Venezuela Assessment
Director of National Intelligence Tulsi Gabbard has dismissed Michael Collins, acting chair of the National Intelligence Council (NIC), and his deputy Maria Langan-Riekhof…
Plan Extends Tax Cuts and Restructures Key Deductions
The legislation extends Trump-era tax cuts and raises the deduction cap for state and local taxes (SALT) to $40,000. It also temporarily exempts tips and overtime from income taxes. However, the largest benefits would go to wealthier taxpayers, fueling criticism over increased inequality.
New Levies on Universities, Immigrants, and Clean Energy
The bill imposes a 21% tax on net investment income at elite private universities with large endowments, such as Harvard. It also adds a fee on remittances sent abroad and ends tax credits for electric vehicles—including Teslas—by the end of 2025, replacing them with interest deductions on loans for U.S.-made cars.
Boosts to Defense and Border Security, Climate Rules Scaled Back
The package allocates an additional $150 billion for defense and $175 billion for border enforcement. It also shifts regulatory priorities away from climate change toward fossil fuels. A new “Trump account” for newborns—offering a $1,000 government contribution—replaces the previously proposed “MAGA account.”
Senate Republicans Signal Resistance, Seek Major Changes
GOP senators have made it clear they’ll push for sweeping revisions—some want permanent corporate tax benefits, others oppose Medicaid cuts or demand stricter budget constraints. The tax plan is expected to become a central issue in the upcoming midterm elections.
