Senate approves Trump’s major tax reform bill

Wednesday 02 July 2025 - 08:31

By: Zahouani Ilham

Senate approves Trump’s major tax reform bill

The U.S. Senate has approved a comprehensive tax reform bill promoted by President Donald Trump, advancing the measure to the House of Representatives for a potential final decision. The bill passed narrowly, 51 to 50, with Vice President JD Vance casting the decisive vote after an extensive 27-hour debate. Although most Republicans supported the bill, three joined Democrats in opposition.

The legislation includes many of Trump’s hallmark policies, such as the 2017 tax cuts, funding increases for border enforcement, and reductions in social safety programs. Critics from both parties have expressed concerns about the bill adding an estimated $3.3 trillion to the national debt and cutting essential programs like Medicaid and SNAP, which could adversely affect low-income families.

President Trump urged the House to pass the bill by July 4, and despite uncertainty in the House, he remained optimistic about its approval. He also downplayed concerns about Medicaid cuts, suggesting the affected numbers would be smaller than predicted.

In the Senate, prominent Republicans celebrated the bill as a win for American workers, while others voiced reservations. Democrats strongly criticized the bill, calling it a betrayal that favors billionaires at the expense of millions losing healthcare.

Republicans control both chambers of Congress and the presidency, but their slim majorities create uncertainty around the bill’s fate. The House Freedom Caucus opposes the bill’s cost, demanding deeper cuts, while billionaire Elon Musk publicly criticized the legislation, warning against escalating national debt.

The bill would permanently extend Trump’s 2017 tax cuts, introduce new tax breaks for tips and overtime pay, and fund stricter immigration enforcement. It also reduces incentives for electric vehicles and renewable energy. Republicans defend the cuts to social programs as necessary for long-term sustainability, though nonpartisan analysts warn that increasing the national debt could harm economic growth and government spending capacity.