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Republican Tax Cuts Risk $3.4 Trillion Debt Surge

6/18/2025

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Republicans Propose Tax Cuts

House Republicans' tax cut package, extending Trump-era cuts, could balloon the national debt by a staggering $3.4 trillion, warns the Congressional Budget Office. The proposal also threatens vital federal safety-net programs like Medicaid and food stamps, setting the stage for intense negotiations in the Senate following its passage in the House last month.

Center

Republicans Revise Tax Bill

Senate Republicans are pushing to revamp Trump's tax bill ahead of a July 4 vote, proposing drastic Medicaid cuts and new work requirements that could strip health coverage from 10.9 million Americans. With an anticipated $3.4 trillion increase in national debt, public backlash is mounting, as many worry the bill favors the wealthy at the expense of the vulnerable.

History

Historical Context

The Tax Cuts and Jobs Act of 2017 reduced corporate tax rates, contributing to a $1.5 trillion increase in national debt. This mirrors past fiscal policies, such as the Bush tax cuts, which also favored the wealthy while straining social safety nets. The Congressional Budget Office warns that extending these cuts could add another $3.4 trillion, exacerbating economic inequality in the U.S.

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Republicans Propose Tax Cuts

House Republicans' tax cut package, extending Trump-era cuts, could balloon the national debt by a staggering $3.4 trillion, warns the Congressional Budget Office. The proposal also threatens vital federal safety-net programs like Medicaid and food stamps, setting the stage for intense negotiations in the Senate following its passage in the House last month.

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