Trump's tax bill stalls as Republican opposition demands deeper cuts

By Al Mayadeen English
Source: News websites
17 May 2025 08:51
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Trump's proposed budget bill faces a major setback as five Republicans join Democrats in opposing it, demanding further Medicaid cuts and a repeal of green energy tax breaks.

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Cars line up in front of the US Capitol, Thursday, May 8, 2025, in Washington (AP)

A budget bill long championed by US President Donald Trump as the "big, beautiful bill" encountered a major obstacle on Friday when lawmakers from his own Republican Party voted against it in Congress.

Five Republican representatives: Chip Roy of Texas, Ralph Norman of South Carolina, Josh Brecheen of Oklahoma, Andrew Clyde of Georgia, and Lloyd Smucker of Pennsylvania, joined all Democrats in opposing the bill during a procedural vote, delivering a significant blow to Trump's domestic agenda. Their opposition stems from demands for deeper budget cuts, particularly to Medicaid and green energy initiatives.

The vote was 16 to 21 on a motion to advance the bill.

Surprising GOP revolt in Congress

While Trump has previously succeeded in pushing through closely contested legislation, this vote marked a clear fracture within the Republican Party. The bill's failure represents the first legislative setback for Trump this year.

The five Republicans who broke ranks made it clear they would withhold support unless Speaker Mike Johnson agreed to further reduce Medicaid spending, a healthcare program relied upon by lower-income Americans.

Trump calls for unity

In a message posted on Truth Social, Trump called on Republicans to unite, "We don't need 'GRANDSTANDERS' in the Republican Party. STOP TALKING, AND GET IT DONE!"

Despite this appeal, GOP support for the bill remains fractured. Hard-liners are pushing for more aggressive cuts, while others are concerned about the political fallout from slashing programs vital to their constituents.

Key Republican concerns

The dissenting Republicans are demanding not only deeper cuts to Medicaid but also structural changes to its funding, arguing that the bill does not adequately reduce the deficit.

In addition, they insist that the bill include a full repeal of green energy tax incentives introduced by Democrats. Texas Republican Chip Roy, who voted against the measure, stated, "This bill falls profoundly short. It does not do what we say it does with respect to deficits."

Impact of proposed tax cuts

The legislation seeks to extend tax cuts originally implemented during Trump's first term. Among the highlights touted by Trump is a policy stipulating no taxes on tips, which he claims will benefit workers.

However, critics argue the bill disproportionately benefits wealthier Americans. According to the bipartisan Joint Tax Committee, the tax cuts would result in a $3.72 trillion cost over ten years.

Democratic response to budget cuts

Democrats have strongly opposed the bill, particularly objecting to proposed cuts to Medicaid and the Affordable Care Act (ACA), which provides subsidized health insurance to millions of Americans.

Pennsylvania Democrat Brendan Boyle condemned the proposed legislation, saying, "No other previous bill, no other previous law, no other previous event caused so many millions of Americans to lose their healthcare. Not even the Great Depression."