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President Donald Trump intensified efforts to unite House Republicans behind his expansive tax and spending package, known as the “One Big Beautiful Bill,” warning dissenters of potential political repercussions. During a closed-door meeting on Capitol Hill, Trump urged fiscal conservatives to ease proposed Medicaid cuts and advised moderates to drop efforts to raise the state and local tax (SALT) deduction cap. He emphasized that the bill, central to his 2024 campaign promises, aims to extend and introduce substantial tax cuts while reducing spending, including $1.6 to $1.7 trillion in reductions, targeting a $2.7 trillion net impact on the deficit through 2034.
Despite Trump’s push, internal divisions persist. Fiscal conservatives argue that the Senate’s version of the bill proposes insufficient spending cuts, with some members, like Rep. Chip Roy of Texas, expressing concerns over the projected deficit increase. Moderates, on the other hand, advocate for higher SALT deductions, which they argue are crucial for taxpayers in high-tax states.
Speaker Mike Johnson continues to mediate between the factions, aiming for a swift passage of the bill using the budget reconciliation process to bypass a Senate filibuster. However, with a narrow Republican majority in the House, the outcome remains uncertain. Trump has warned that failure to pass the bill could have significant electoral consequences, suggesting potential primary challenges for dissenters.
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