Senate Republicans propose Trump's “Big Beauty Act” after dramatic late-night vote
Senate Republicans nearly cut a critical procedural step when they competed to promote tax breaks by U.S. President Donald Trump, cuts spending and deportation funds ahead of the July 4 deadline.
Tally, 51-49, broke the potential tie after a turbulent night with JD Vance at the Capitol. When the vote came to a halt, nervous scenes were played in the room, dragging for more than three hours as negotiations were crowded with senators, and private meetings were held on the floor. Finally, two Republicans opposed the motion to join all Democrats.
There is also a long weekend to work.
Republicans have used their majority in Congress to put the democratic opposition aside, but they have encountered a series of political and policy setbacks. Not all Republican lawmakers have made proposals to reduce spending on Medicaid, food stamps and other programs to help pay for the cost of extending the Trump tax break of about $3.8 trillion.
“It's time to get this legislation across the finish line,” Senate Majority Leader John Thune said.
Before the convening, the White House issued an executive policy statement saying it “strongly supports the passage of the bill.” Trump himself posted information about the visit on social media on the golf course in Virginia on Saturday.
But when night fell, Trump slammed North Carolina Senator Thom Tillis, who announced that he could not support the bill because his fears Medicaid cuts severe Medicaid that would have no health care in his state. Tillis of Kentucky and Sen. Rand Paul voted against.
Pressure is growing in every aspect – billionaire Elon Musk criticized the plan for being “completely crazy and destructive”.
After a very public verbal war, Elon Musk and Donald Trump seem to have ended their honeymoon. CBC's Eli Glasner breaks the unexpected interest between the world's two most powerful characters and how the “Big and Beautiful Bill” eventually tear it apart.
The 940-page large Beautiful Act, released by midnight on Friday, is expected to be held in overnight debates and amendments over the coming days. If the Senate can pass, the bill will hold its final round of votes in the House before it can reach the White House.
With the narrow Republican Party in the House and Senate, leaders need almost every member of the ship. A new analysis from the non-partisan Congressional Budget Office says the Senate bill will increase 11.8 million people without health insurance in 2034.
New York's Senate Democratic leader Chuck Schumer said Republicans revealed the bill in “Night Death” and were eager to complete the bill, and then the public knew exactly what it was. He immediately gave a full reading in the Senate late Saturday, which would take several hours.
Foreign Minister Anita Anand told Power and Politics that Ottawa will “ensure the best results of our country” in U.S. trade negotiations while also diversifying Canada’s supply chains.
The Republican Party’s Success or Failure Moment
The weekend meeting could be a change moment for Trump’s party, which has invested much of its political capital into his signature domestic policy plan. Trump is urging Congress to wrap it up and inform the Republican reservations of “seeers” to line up. The legislation is a series of ambitious but complex Republican priorities. Essentially, this will make many tax reliefs for Trump’s first term permanently, otherwise, if Congress does not take action, it will expire before the end of the year, resulting in potential tax increases for Americans. The bill would add new breaks, including taxes on tips and put $350 billion in national security burdens, including Trump's massive deportation agenda.
But cuts to Medicaid, food stamps and green energy investments have also sparked dissent at the Republican rank.
Republicans rely on reductions to offset lost tax revenues, but some lawmakers say the cuts are too far away, especially for people who provide health care through Medicaid. Meanwhile, conservatives who are worried about national debt are pushing for steeper cuts.
Digital Service Tax in Canada
Section 899 of Trump's A Large Bill Act, known as the “revenge tax”, requires the new withholding tax to be collected to investment income paid by U.S. companies and to investors living in U.S. countries.
Canada's Digital Services Tax (DST) is one of the taxes that the United States considers discriminatory.
Over the past few weeks and months, Trump has provided many reasons for the escalation of the trade dispute between Canada and the United States. On Friday, he returned to DST.
DST affects large companies that provide digital services such as online advertising or shopping and earn over $20 million in revenue from Canadian sources. Giant companies like Amazon, Apple, Airbnb, Google, Meta and Uber will tax 3% of the money earned by Canadian users and customers.
U.S. President Donald Trump said he would increase government spending and relax some fiscal restrictions and last week called a new spending bill the “big beauty bill.” Mark Ting, a partner at the Foundation Fortune and Coast Personal Finance columnist, said the market has responded positively to the bill.
Taxes have been in place since last year, but the first payment will begin Monday. It is a retrospective of 2022, so the company will receive $20 billion in U.S. bills by the end of July.
Income is a great benefit. The Parliamentary Budget Office estimated last year that the tax would bring in more than $7 billion in revenue over five years.
