Senate Sparks Heated Debate Over Tax Cuts and Spending Cuts

The Senate is gearing up for an all-night session Sunday, as Republicans grapple with President Donald Trump’s sweeping bill that combines tax breaks with significant spending cuts. Democratic opposition is mounting, and even some Republican voices are urging caution amid concerns over the bill’s impact on the budget.

The outcome of this high-stakes weekend remains unpredictable. GOP leaders are racing against the clock to meet Trump’s Fourth of July deadline for passing the legislation. Just a day earlier, the party barely cleared a procedural hurdle, facing resistance from a handful of Republican senators. It took phone calls from Trump and a visit from Vice President JD Vance to keep the bill on track.

In a surprising development, Senator Thom Tillis of North Carolina announced he will not seek reelection. Trump had pressured him after Tillis expressed doubts about voting for the bill, citing its substantial Medicaid cuts. A new analysis from the Congressional Budget Office warns that if enacted, the bill would leave nearly 12 million Americans uninsured by 2034 and would add almost 3.3 trillion dollars to the national deficit over ten years.

While some Republicans support steeper cuts, especially in health care, Trump has issued a warning to his colleagues. “Don’t go too crazy,” he posted on social media, reminding them to keep reelection in mind.

The Senate bill proposes about 4 trillion dollars in tax cuts, making permanent Trump’s 2017 tax rates, which are set to expire at the end of this year if Congress does not act. It also introduces new tax provisions, including eliminating taxes on tips.

Critics argue the bill would undo billions in green energy tax credits, threatening wind and solar investments nationwide. It also includes 1.2 trillion dollars in cuts, primarily targeting Medicaid and food assistance programs by tightening work requirements and eligibility rules.

On the security front, the legislation allocates 350 billion dollars for border and national security initiatives, including funding for deportations, some of which would be financed through new fees charged to immigrants.