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      Senate Republicans pass Trump’s sweeping policy bill, clearing major hurdle

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      Senate Republicans on Tuesday passed a major tax and spending bill demanded by Donald Trump, ending weeks of negotiations over the comprehensive legislation and putting it another step closer to enactment.But it remains unclear whether changes made by the chamber will be accepted by the House of Representatives, which approved an initial draft of the legislation last month by a single vote. While Republicans control both houses of Congress, factionalism in the lower chamber is particularly intense, with rightwing fiscal hardliners demanding deep spending cuts, moderates wary of dismantling safety-net programs and Republicans from Democratic-led states expected to make a stand on a contentious tax provision. Any one of these groups could potentially derail the bill’s passage through a chamber where the GOP can lose no more than three votes.The bill’s passage is nonetheless an accomplishment for Senate Republicans who faced their own divisions in getting it passed, and saw one lawmaker announce his retirement after clashing with Trump over the bill. The push to get the legislation done intensified on Saturday when the chamber voted to begin debate, then continued with amendment votes that began on Monday and stretched all night.The vote for passage came just after noon on Tuesday, and required the vice-president, JD Vance, to break a tie that resulted after three Republicans joined with all Democrats in voting against it.In a joint statement, the speaker, Mike Johnson, and the House Republican leadership said: “Republicans were elected to do exactly what this bill achieves: secure the border, make tax cuts permanent, unleash American energy dominance, restore peace through strength, cut wasteful spending, and return to a government that puts Americans first. This bill is President Trump’s agenda, and we are making it law.”The Senate majority leader, John Thune, said Republican senators and staff began laying the groundwork for this budget bill more than a year ago, planning how they would extend tax breaks if they had the votes. He said: “Since we took office in January, Republicans have been laser-focused on achieving the bill before us today. And now we’re here, passing legislation that will permanently extend tax relief for hard-working Americans.”The lower chamber will take up the measure on Wednesday, before a deadline Trump has imposed to have it on his desk by Friday, the Independence Day holiday. But the president has recently made comments indicating the bill could arrive later, saying at a press conference on Friday “we can go longer”, before writing on Truth Social that “the House of Representatives must be ready to send it to my desk before July 4th”.Trump has described the bill as crucial to his presidency, and congressional Republicans made it their top priority. It will extend tax cuts enacted during the president’s first term in 2017, and includes new provisions to cut taxes on tips, overtime and interest payments for some car loans. It funds Trump’s plans for mass deportations by allocating $45bn for Immigration and Customs Enforcement detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029. It also includes more than $50bn for the construction of new border fortifications, which will probably include a wall along the border with Mexico.To satisfy demands from fiscal conservatives for cuts to the US’s large federal budget deficit, the bill imposes new work requirements on enrollees of Medicaid, which provides healthcare to low-income and disabled Americans. It also imposes a limit on the provider tax states use to fund their program, which could lead to reductions in services. Finally, it sunsets some incentives for green-energy technologies created by Congress under Joe Biden.Nonetheless, the bill would add $3.3tn to the US budget deficit through 2034, according to the non-partisan Congressional Budget Office.The Committee for a Responsible Federal Budget, a non-profit focused on fiscal responsibility, called the bill “a failure of responsible governing” because it will add to the federal debt and includes budget gimmicks that disguise how much debt it is adding. The group estimated it would add more than $4tn to the national debt through 2034, and said that if some “arbitrary expirations” were made permanent, they would add $5.4tn.“The Senate reconciliation bill fails almost every test of fiscal responsibility,” said Maya MacGuineas, the group’s president. “Instead of worrying about arbitrary deadlines or sparing the Senate another vote-a-rama, fiscal conservatives should stand up for what’s right and reject the Senate plan to explode our debt.”While it was formally titled the one big beautiful bill act, the Senate’s Democratic minority leader, Chuck Schumer, managed to get the name stricken minutes before the vote for passage, though that is not expected to change how many lawmakers refer to it. Because it was passed using the budget reconciliation procedure that requires legislation only affect spending, revenue and the debt limit, Democrats were unable to use the filibuster to block its passage in the Senate.Schumer called the bill a “big, ugly betrayal”, pointing to the millions who will lose health insurance, job losses and debt increase done in favor of tax breaks for the wealthy and corporate special interests. He also decried the process Republicans used to pass the bill, saying they pushed the rules and norms of the chamber in a way that did “grave damage” to the body.“Today’s vote will haunt our Republican colleagues for years to come as the American people see the damage that is done – as hospitals close, as people are laid off, as costs go up, as the debt increases. They will see what our colleagues have done and they will remember it, and we Democrats will make sure they remember it,” Schumer said.In the lead-up to the bill’s passage, several moderate Republicans signaled unease with its cuts to the social safety net, including North Carolina’s Thom Tillis. After saying on Saturday he would not vote for the bill, Trump publicly attacked him, and the senator announced he would not run for re-election next year, potentially improving Democrats’ chances of picking up the purple state’s seat.“It is inescapable this bill will betray the promise Donald Trump made,” Tillis said on Sunday. Pointing to a forecast that the bill would cost 663,000 North Carolinians their Medicaid coverage, Tillis said: “What do I tell 663,000 people in two years or three years, when President Trump breaks his promise by pushing them off of Medicaid because the funding’s not there any more, guys?”In addition to Tillis, Rand Paul of Kentucky voted against passage, criticizing the bill’s impact on the budget deficit and national debt. Susan Collins, who is expected to face a fierce re-election challenge next year from Democrats for her seat in Maine, also opposed it, saying the measure would “threaten not only Mainers’ access to healthcare, but also the very existence of several of our state’s rural hospitals”.The Alaska moderate Lisa Murkowski expressed similar concerns about its effect on Medicaid, but ended up voting for passage.Now that the legislation is back in the House, Johnson faces a difficult task in getting the Senate’s changes cleared by his conference’s competing factions.Moderates remain concerned about the safety-net cuts, while rightwing Republicans have railed against the bill’s expensive price tag. Last week, David Valadao, a Republican representative whose central California district has one of the highest Medicaid enrollment rates in the nation, said he would not support the measure over its funding changes to the program.On Monday, before the bill’s passage, the Democratic National Committee announced the launch of an organizing campaign to capitalize on the unpopularity of the budget plan’s provisions. Ken Martin, the chair of the DNC, shared in a press briefing that when he was growing up, his family relied on the kinds of safety-net programs that are being cut.Martin said in a statement on Tuesday that the bill helps billionaires at the expense of American families – the sort of messaging the party will rely on as it hits the road to turn out voters for the midterms and special elections.“It’s a massive scheme to steal from working folks, struggling families and, hell, even from nursing homes – all to enrich the already rich with a tax giveaway,” Martin said. “Billionaires don’t need more help – working families do. Democrats will stand shoulder to shoulder with working families to kick these Republicans out of their seats in 2026.”The rightwing House Freedom caucus has also criticized the bill for its price tag. “The Senate must make major changes and should at least be in the ballpark of compliance with the agreed upon House budget framework. Republicans must do better,” they wrote on Monday, as amendments were being considered.In a Tuesday press conference, the House minority leader, Hakeem Jeffries, said the bill represents the “largest cut to Medicaid in American history”. He expects his caucus will uniformly oppose the bill and will be making the case to vote it down in the rules committee and on the House floor.When asked whether House Democrats would use any procedural moves to delay passage of the bill, Jeffries said: “All procedural and legislative options are on the table.” More

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      What’s in Trump’s major tax bill? Extended cuts, deportations and more

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      Senate Republicans on Tuesday passed Donald Trump’s massive tax and spending bill after spending all night voting on amendments. The bill, which the GOP has dubbed the One Big Beautiful Bill Act, now returns to the House of Representatives, which passed their version last month, before a Friday deadline the president has imposed for the legislation to be on his desk.Here’s what’s in the Senate’s version of the bill:Extending big tax cutsAfter taking office in 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers, but generally benefited high earners more than most. Those provisions are set to expire after this year, but the “big, beautiful bill” makes them permanent, while increasing the standard deduction by $1,000 for individuals, $1,500 for heads of households and $2,000 for married couples, albeit only through 2028.Cutting tax on tips or overtimeThe bill has an array of new tax write-offs – but only while Trump is president. Several of the new exemptions stem from promises Trump made while campaigning last year. Taxpayers will be able to write off income from tips and overtime, and interest made on loans to purchase cars assembled in the United States. People aged 65 and over are eligible for an additional deduction of $6,000, provided their adjusted gross income does not exceed $75,000 for single filers or $150,000 for couples. But all of these incentives expire at the end of 2028, right before Trump’s term as president ends.Money for mass deportations and a border wallAs part of Trump’s plan to remove undocumented immigrants from the country, Immigration and Customs Enforcement (Ice) will receive $45bn for detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029. More than $50bn is allocated for the construction of new border fortifications, which will probably include a wall along the border with Mexico.Slashing Medicaid and food stampsRepublicans have attempted to cut down on the bill’s cost by slashing two major federal safety-net programs: Medicaid, which provides healthcare to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap), which helps people afford groceries. Both are in for funding cuts, as well as new work requirements. The left-leaning Center on Budget and Policy Priorities estimates the Medicaid changes could cost as many as 10.6 million people their healthcare, and about eight million people, or one in five recipients, their Snap benefits.Cuts to green energyThe bill will phase out many tax incentives created by Congress during Joe Biden’s presidency meant to encourage consumers and businesses to use electric vehicles and other clean-energy technology. Credits for cleaner cars will end this year, as will subsidies for Americans seeking to upgrade their homes to cleaner or more energy-efficient appliances. While a draft of the bill targeted wind- and solar-energy projects with a new excise tax, senators voted to remove that at the last minute.State and local tax relief (Salt)One of the thorniest issues the bill addresses is how much relief to provide from state and local taxes (Salt), which many Americans must also pay in addition to their federal tax. Several House Republicans representing districts in Democratic-led states withheld their support from the bill until the Salt deductibility cap was raised from $10,000 to $40,000, but Senate Republicans made clear they would change that. The Senate’s version keeps the $40,000 cap, but only through 2028.Raising the debt ceilingThe bill will increase the US government’s authority to borrow, known as the debt limit, by $5tn. The US treasury secretary, Scott Bessent, has predicted the government will hit the limit by August, at which point it could default on its debt and spark a financial crisis.More benefits for the rich than the poorWealthier taxpayers appear set to receive more benefits from this bill than poorer ones, according to the Budget Lab at Yale University. Taxpayers in the lowest-income quintile will see a 2.5% decrease in their incomes, largely due to the Snap and Medicaid cuts, while the highest earners will see their incomes grow by 2.4%, the Budget Lab estimated. The impact could change based on which amendments the Senate adopts.A huge price tagDespite the GOP’s attempts to use the bill as a vehicle to rein in government spending, the bill would increase the deficit by $3.3tn through 2034, according to the non-partisan Congressional Budget Office. Most of that price tag is the extension of the 2017 tax cuts. The heavy budgetary impact could complicate the bill’s chances of passing the House, where fiscal hardliners have demanded budget-deficit reductions. More

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      Republican senator denounces Trump’s ‘big, beautiful bill’ in fiery speech

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      “It is inescapable this bill will betray the promise Donald Trump made,” Thom Tillis, the North Carolina Republican senator, said on Sunday night, sandblasting the Senate version of the “big, beautiful bill” that is meant to codify the president’s agenda.Tillis made his speech on the Senate floor on Sunday night, a few hours after announcing he would not seek re-election in politically competitive North Carolina. Observers described it as “fiery” and “savage”. But Tillis carefully avoided direct criticism of the president as he denounced proposed cuts to Medicaid, a lack of rigor in the legislative process and the Senate’s headlong drive to an artificial deadline.Instead, in one of the most forceful Republican denunciations of the bill, Tillis attacked “amateurs” advising the president who have “no insight into how these provider tax cuts are going to be absorbed without harming people on Medicare”.Tillis’s office published an analysis concluding that the Senate budget would have a $32bn impact on the North Carolina healthcare system and threaten insurance coverage for 663,000 Medicaid expansion beneficiaries in the state – about one in 16 North Carolinians.“What do I tell 663,000 people in two years or three years, when President Trump breaks his promise by pushing them off of Medicaid because the funding’s not there any more, guys?” Tillis said in his floor speech.It has become increasingly difficult for lawmakers in the Republican party to break ranks with the president without facing withering blowback from conservative media, “Maga” diehards and Trump himself on social media.“Tillis is a talker and complainer, NOT A DOER! He’s even worse than Rand ‘Fauci’ Paul!” Trump posted on Truth Social after announcing his opposition to the bill. Trump pledged to back a primary challenger to Tillis. When Tillis subsequently announced he would not seek re-election, Trump called it “good news”, and threatened primary challenges against other Republican fiscal conservatives standing in the way of the bill’s passage.Arguments critical of conservative doctrine on healthcare would fall on deaf ears. Instead, Tillis’s rhetoric emphasized the political threat to Republican lawmakers and the president himself if the bill passed in its current form.“I’m telling the president that you have been misinformed,” he said. “You supporting the Senate mark will hurt people who are eligible and qualified for Medicaid.”Tillis referred back to Trump’s promise not to cut Medicaid while campaigning for president.skip past newsletter promotionafter newsletter promotion“The last time I saw a promise broken around healthcare, with respect to my friends on the other side of the aisle, is when somebody said “If you like your healthcare, you could keep it. If you like your doctor, you could keep it,” Tillis said. “We found out that wasn’t true. That made me the second Republican speaker of the House since the civil war.”Tillis signaled he would be willing to support the House version of the reconciliation bill.The procedural vote passed 51-49 Sunday. Budget reconciliation bills are not subject to cloture and the 60-vote threshold limiting debate. Trump has repeatedly pushed a 4 July deadline for passage. More

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      Home discomforts send Trump rushing to project image of global patriarch

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      “Daddy’s home.” So said a social media post from the White House, accompanied by a video featuring the song Hey Daddy (Daddy’s Home) by Usher and images of Donald Trump at the Nato summit in The Hague.The US president’s fundraising allies were quick to market $35 T-shirts with his image and the word after Mark Rutte, the Nato secretary general, referred to Trump’s criticism of Israel and Iran over violations of a ceasefire by quipping: “And then Daddy has to sometimes use strong language to get [them to] stop.”Yet even as Trump seeks to project an image of global patriarch, there are signs of trouble on the home front. His polling numbers are down. His party is struggling to pass his signature legislation. Millions of people have marched in the streets to protest against him. Critics say the president who claims to put America First is in fact putting America Last.Trump is not the first president to find the foreign policy domain, where as commander-in-chief he recently ordered strikes on nuclear sites in Iran, less restrictive than the domestic sphere, where a rambunctious Congress, robust judiciary and sceptical media are constant irritants. But rarely has the gap between symbolic posturing abroad and messy politicking at home been so pronounced.“There’s two presidencies,” said Larry Jacobs, director of the Center for the Study of Politics and Governance at the University of Minnesota. “The one on the domestic front is gruesome and involves long-drawn-out and disappointing negotiations with Congress and that’s exactly what Donald Trump is engaged in now. What emerges from Congress is not going to be as ‘big’ or ‘beautiful’ as he promised.“Meanwhile you’ve got staggering photographs of bombs falling from the sky, Donald Trump’s flamboyant description of what he’s achieved in Iran and Europe. That’s the kind of Hollywood performance that Donald Trump wants.”The president stunned the world last Saturday by announcing, on his Truth Social platform, that he had ordered more than 125 aircraft and 75 weapons – including 14 bunker-busting bombs – to hit three targets in Iran to prevent the country obtaining a nuclear weapon.He followed up with a White House speech, choreographed to project an image of power, in which he declared: “Tonight, I can report to the world that the strikes were a spectacular military success. Iran’s key nuclear enrichment facilities have been completely and totally obliterated.”View image in fullscreenThat narrative has since been cast into doubt by a leaked intelligence report suggesting that the operation set back Iran’s nuclear programme by only a few months. Still, Trump pivoted to the role of peacemaker, again using Truth Social to announce a ceasefire between Iran and Israel, prompting Republicans to gush that he should win the Nobel peace prize.Trump’s barrage of speeches, interactions with reporters and social media posts about the Middle East were likened by some to a daily soap opera, dominating Americans’ attention and distracting them from his one big beautiful bill, a budget plan that threatens to slash the social safety net that many of his own supporters depend on.Jacobs observed: “This is a classic deception. He’s like the carnival barker who’s waving his hands to keep the attention of the audience even as he’s hiding the part for the next trick.“What’s coming out of Congress is going to absolutely harm many of his voters. Politicians like to cover their tracks; there’s no covering the tracks here. There will be known cuts to widely used popular programmes like the healthcare for Medicaid and there will be no doubt as to who’s responsible. These are traceable, highly visible consequences of Donald Trump.”Now in the sixth month of his second presidency, Trump’s domestic honeymoon is over. A poll of 1,006 likely voters nationwide by John Zogby Strategies on 24 and 25 June found the president’s approval rating down three points to 45%. About 49% of voters approve of his handling of immigration while 47% disapprove but on the economy 43% approve and 54% disapprove.Asked if they expect Trump’s presidency will make them financially better off or worse off, 40% said better and 50% said worse. Zogby commented: “There is a lot of anxiety domestically, first and foremost on the economy. People are confused and insecure. The numbers are plunging.”View image in fullscreenConsumer confidence unexpectedly deteriorated in June, a sign of economic uncertainty because of Trump’s sweeping tariffs. The anxiety reported by the Conference Board was across the political spectrum, with the steepest decline among Republicans. And the share of consumers viewing jobs as plentiful was the smallest since March 2021.Elizabeth Warren, a Democratic senator, argued in a floor speech this week that Trump had broken him promise to lower costs “on day one”. She said: “American families don’t need another war – they need good jobs and lower prices, and that is what we should be focused on.”skip past newsletter promotionafter newsletter promotionWarren listed 10 ways in which the One Big Beautiful Bill Act would raise costs for families, from rent to groceries to prescription drug prices, and warned that it will take healthcare away from more than 16 million people. Republicans in the House of Representatives and Senate continue to haggle over the contents of the bill as a 4 July deadline looms.Neera Tanden, president and chief executive of the Center for American Progress and a former domestic policy adviser to President Joe Biden, told an audience on Thursday: “This legislation is the greatest Robin Hood-in-reverse legislation that I have ever seen in my lifetime. It is cutting healthcare for working-class people and using those dollars to fund tax cuts for the wealthiest Americans.”View image in fullscreenMeanwhile discontent is simmering over Trump’s signature issue of immigration, even among some of his own voters. Videos of people being snatched off the streets or beaten by Immigration and Customs Enforcement (Ice) agents have provoked widespread revulsion.There have also been cases such as that of Ming Li Hui, a popular member of staff at a restaurant in rural Missouri who was arrested and jailed to await deportation. Her friend Vanessa Cowart told the New York Times: “I voted for Donald Trump, and so did practically everyone here. But no one voted to deport moms. We were all under the impression we were just getting rid of the gangs, the people who came here in droves.”Meanwhile aggressive workplace raids are hurting hotels, restaurants, farms, construction firms and meatpacking companies, including in conservative states. The alarm recently got through to Trump, who admitted that some undocumented immigrants were actually “very good, longtime workers” and ordered a temporary pause, only to then yield back to hardliners in his administration.Wendy Schiller, a political science professor at Brown University in Providence, Rhode Island, said: “In a restaurant, if you lose your cooks, you can’t serve people and you lose money. If you are in a factory where people have been swooped up by Ice, you have to do more work.“It puts more of the burden on the same people who might have voted for Donald Trump – lower-income or middle-income factory workers or meat-processing people. They’re feeling the effects of this immigration sweep in ways that the administration did not anticipate.”View image in fullscreenTrump’s second term has been further marred by the tech billionaire Elon Musk leading a “department of government efficiency”, or Doge, that fired thousands of federal workers but fell far short of its cost-saving target before Musk left amid acrimony. The president’s authoritarian attacks on cultural institutions, law firms, media organisations and universities fuelled “No Kings” protests involving more than 5 million people in more than 2,100 cities and towns across the country on 14 June.In that context, it is perhaps not surprising that Trump should relish the global stage, where any world leader is just a phone call away and where he is now being feted as statesman and father figure. It has proven easier to drop bombs on Iran or pressure Nato to agree to a big increase in military spending than to tame Thomas Massie, a rebellious Kentucky Republican defying him over both Iran and the spending bill.Schiller added: “It is true for every president, Republican or Democrat, that when things are going south domestically they turn to foreign affairs. Trump feels in some ways more powerful on the global stage than he does trying to get Congress to do what he wants. The House Republicans are giving him a hard time. The Senate Republicans are giving him a hard time. He’s annoyed by this so then he goes, well, we’re a global military power.” More

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      The Trump-Musk feud exposes America’s wealth-hoarding crisis | Gabriel Zucman

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      As the world watches Donald Trump and Elon Musk publicly fight over the sweeping legislation moving through Congress, we should not let the drama distract us. There is something deeper afoot: unprecedented wealth concentration – and the unbridled power that comes with such wealth – has distorted our democracy and is driving societal and economic tensions.Musk, the world’s richest man, wields power no one person should have. He has used this power to elect candidates that will enact policies to protect his interests and he even bought his way into government. While at the helm of Doge, Musk dramatically reshaped the government in ways that benefit him – for instance, slashing regulatory agencies investigating his businesses – and hollowed out spending to make way for tax cuts that would enrich him.Musk is just one example of the ways in which unchecked concentration of wealth is eroding US democracy and economic equality. Just 800 families in the US are collectively worth almost $7tn – a record-breaking figure that exceeds the wealth of the bottom half of the US combined. While most of us earn money through labor, these ultra-wealthy individuals let the tax code and their investments do the work for them. Under the current federal income tax system, over half of the real-world income available to the top 0.1% of wealth-holders (those with $62m or more) goes totally untaxed. As a result, billionaires like Elon Musk and Jeff Bezos have gotten away with paying zero dollars in federal income taxes in some years, even when their real sources of income were soaring.On the other side, millions of hard-working Americans are struggling to make ends meet. Their anxiety is growing as tariffs threaten to explode already rising costs.A broken tax code means unchecked wealth-hoarding. The numbers are staggering: $1tn of wealth was created for the 19 richest US households just last year (to put that number into perspective, that is more than the output of the entire Swiss economy). That was the largest one-year increase in wealth ever recorded. I have studied this rapidly ballooning wealth concentration, and like my colleagues who focus on democracy and governance, I am alarmed by the increasingly aggressive power wielded by a small number of ultra-wealthy individuals.The good news is, hope is not lost. We can break up this dangerous concentration of wealth by taxing billionaires. There is growing public support for doing just this, even among Republican voters. A recent Morning Consult poll found that 70% of Republicans believed “the wealthiest Americans should pay higher taxes”, up from 62% six years ago.With many of Trump’s 2017 tax cuts for the wealthy set to expire this year, legislators have an opportunity to reset the balance driving dangerous wealth-hoarding. Rather than considering raising taxes on middle-class Americans or even households earning above $400,000, they must focus on the immense concentration of wealth among the very top 0.1% of Americans. This would not only break up concentrated wealth, but also generate substantial revenue.One mechanism for achieving this goal is a wealth tax on the ultra-wealthy. The Tax Policy Center recently released an analysis of a new policy called the Five & Dime tax. This proposal would impose a 5% tax on household wealth exceeding $50m and a 10% tax on household wealth over $250m. The Five & Dime tax would raise $6.8tn over 10 years, slow the rate at which the US mints new billionaires, and reduce the billionaires’ share of total US wealth from 4% to 3%.While breaking up dangerous wealth concentration is reason enough to tax billionaires, this revenue could be invested in programs that support working families and in turn boost the economy. Lawmakers could opt for high-return public investments like debt-free college, helping working families afford childcare, expanding affordable housing, rebuilding crumbling infrastructure, and strengthening climate initiatives.Ultimately, taxes on the ultra-rich could transform American society for the better and grow the economy by discouraging unproductive financial behaviors and promoting fair competition – leading to a more dynamic and efficient system.Critics will inevitably claim such a tax would stifle economic growth or prove too challenging for the IRS to implement. But in our highly educated nation, the idea that growth and innovation comes from just a handful of ultra-wealthy individuals does not withstand scrutiny. And while there are challenges for administering any bold proposal, America has always been up for a challenge.After witnessing the consequences of billionaire governance firsthand under this administration, Americans understand what’s at stake. We are seeing how unchecked, astronomical wealth has corrupted American democracy and stifled the economy. It’s not too late to act. Now it’s time for lawmakers who care about the country’s future to embrace solutions that empower everyone, not just the few at the top.

      Gabriel Zucman is professor of economics at the University of California Berkeley and the Paris School of Economics More

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      Trump and Musk trade barbs as rift over tax and spend bill erupts into open

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      A public feud erupted between Donald Trump and Elon Musk on Thursday, with the president saying he was “very disappointed” by the former adviser’s opposition to his top legislative priority, and Musk firing back that Trump would not have won election without his financial support.The falling-out came days after Musk had stepped down as head of Trump’s “department of government efficiency” (Doge) and then pivoted to attacking the One Big Beautiful Bill, which would extend tax cuts, fund beefed-up immigration enforcement and impose new work requirements for enrollees of federal safety net programs.While the Tesla CEO has focused his complaints on the price tag of the bill, which the non-partisan Congressional Budget Office estimates will add $2.4tn to the deficit over the next decade, Trump accused him of turning against it because of provisions revoking incentives for consumers to purchase electric vehicles.“I’m very disappointed in Elon. I’ve helped Elon a lot,” Trump said, adding that “he knew every aspect of this bill. He knew it better than almost anybody, and he never had a problem until right after he left.”“Look, Elon and I had a great relationship. I don’t know if we will any more,” the president said.Musk responded almost immediately on X, saying that the president’s comment was “false”, and “this bill was never shown to me even once”. He then pivoted to personal attacks on Trump, after praising him just days earlier in an Oval Office appearance to mark the end of his time leading Doge.“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” he said, responding to a video of Trump’s remarks. “Such ingratitude.”The tech boss’s criticism has become the latest obstacle facing the One Big Beautiful Bill , which the House of Representatives approved last month by a single vote.The Senate this week began considering the bill, not long after Musk commenced the barrage of tweets over its cost, which he warned would undo Doge’s efforts to save the government money by cancelling programs and pushing federal workers out of their jobs. Musk said he believed the initiative could reduce spending by $1tn, though its own dashboard shows it has saved less than 20% of that amount since Trump was inaugurated.The House speaker, Mike Johnson, spent weeks negotiating with his fractious Republican majority to get the bill passed narrowly through his chamber, and on Wednesday said he had been trying to speak with Musk about his concerns. In an interview with Bloomberg TV on Thursday, he called the Tesla CEO “a good friend” and said the two had exchanged text messages ahead of a call he expected to take place that morning.View image in fullscreen“I just want to make sure that he understands what I think everybody on Capitol Hill understands. This is not a spending bill, my friends, this is a a budget reconciliation bill. And what we’re doing here is delivering the America first agenda,” Johnson said.“He seems pretty dug in right now, and I can’t quite understand the motivation behind it,” the speaker added.Later in the day, Johnson told reporters at the Capitol that the call did not take place, but that the disagreement “isn’t personal”. On X, Musk publicly questioned Johnson’s resolve to cut government spending, prompting the speaker to reply that he “has always been a lifelong fiscal hawk”.The Senate’s Republican leaders have shown no indication that they share Musk’s concerns. Instead, they are eyeing changes to some aspects of the measure that were the result of hard-fought negotiations in the House, and could throw its prospects of passage into jeopardy.One issue that has reappeared is the deductibility of state and local tax (Salt) payments, which the tax bill passed under Trump in 2017 limited to $10,000 per household. House Republicans representing districts in Democratic-run states that have higher tax burdens managed to get a provision increasing the deduction to $40,000 into the One Big Beautiful Bill act.But there are almost no Republican senators representing blue states. The majority leader, John Thune, said after a meeting with Trump on Wednesday that his lawmakers were not inclined to keep that provision as they negotiate the bill.“We also start from a position that there really isn’t a single Republican senator who cares much about the Salt issue. It’s just not an issue that plays,” Thune said.That could upset the balance of power in the House, where Republicans can lose no more than three votes on any bill that passes along party lines. More

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      Elon Musk attacks Trump’s ‘big beautiful’ tax bill as ‘outrageous’ and says it will cause deficit to grow to $2.5tn – US politics live

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      Good morning and welcome to the US politics live blog. I’m Tom Ambrose and I will be bringing you all the latest news lines over the coming hours.We start with news that Elon Musk, the billionaire tech entrepreneur, opened a new rift with Donald Trump by denouncing the US president’s tax and spending bill as a “disgusting abomination”.Musk’s online outburst could embolden fiscally conservative Republican senators – some of whom have already spoken out – to defy Trump as they continue crucial negotiations on Capitol Hill over the so-called “one big, beautiful bill”.“I’m sorry, but I just can’t stand it anymore,” Musk wrote on his X social media platform on Tuesday. “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.”Musk, who had previously voiced criticism of the proposed legislation, quipping that it could be big or beautiful but not both, added on X: “It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt.”He continued: “Congress is making America bankrupt.”A top donor to Trump during last year’s election campaign, Musk departed the White House last week after steering its so-called “department of government efficiency” (Doge) with the stated mission of slashing fraud and abuse within federal departments. He has argued that the Republican bill will undermine Doge’s work and drive the US further into debt.For the full report, see here:In other developments:

      Republican firebrand Marjorie Taylor Greene has drawn widespread criticism from Democratic colleagues for admitting that not only did she not read Donald Trump’s tax and spending bill before voting for it, but she would have voted against it had she read thoroughly.The White House gloated on social media about the arrests of the wife and five children of Mohamed Sabry Soliman, the suspected Boulder attacker, and joked about providing them with “six one-way tickets”.

      In the 48 hours since the firebomb attack in Boulder, Colorado, on a demonstration in support of Israelis held hostage in Gaza, Republicans politicized the attack, attempting to blame Democrats, including the state’s multiple Jewish leaders.

      Democrats denounced the Trump administration’s “cruel” decision to rescind health department guidance issued in the wake of the 2022 Dobbs decision, striking down the right to an abortion, that required hospitals to provide abortions to women in medical emergencies even in state’s with local bans on the procedure.

      Millions of legal immigrants may be left unable to work after the US Social Security Administration quietly instituted a rule change to stop automatically issuing them social security numbers.

      A US judge on Tuesday ruled the US Bureau of Prisons must keep providing transgender inmates gender-affirming care, despite an executive order Donald Trump signed on his first day back in office to halt funding for such care. More

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      US budget chief calls fears that cuts to benefits will lead to deaths ‘totally ridiculous’

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      The White House budget director Russ Vought on Sunday dismissed as “totally ridiculous” fears expressed by voters that cuts to benefits in the huge spending bill passed by the House will lead to premature deaths in America.Donald Trump’s One Big Beautiful Bill act, now awaiting debate in the US Senate, will slash two major federal safety net programs, Medicaid, which provides healthcare to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap), which helps people afford groceries, which will affect millions of people if it becomes law.Vought, director of the office of management and budget (OMB) and a key figure in Project 2025, the rightwing manifesto created to guide a second Trump term, defended the bill in an appearance on CNN on Sunday morning, also defending the lacerations to the federal workforce under Elon Musk’s so-called “department of government efficiency” (Doge).Vought was asked about a town hall meeting in Iowa last week hosted by the senator Joni Ernst where, when fielding questions about proposed cuts to Medicaid, a constituent yelled out that as a result people were going to die.Ernst responded, to jeers: “People are not – well, we all are going to die. For heaven’s sakes, folks.”Then, after the exchange went viral online, she posted a sarcastic non-apology video on Saturday, saying: “I made an incorrect assumption that everyone in the auditorium understood that yes, we are all going to perish from this Earth. So I apologize. And I’m really, really glad that I did not have to bring up the subject of the tooth fairy as well.”When Vought responded on CNN’s State of the Union politics show about such concerns over cuts to health insurance and grocery subsidies leading to premature deaths, he said: “It’s totally ridiculous. This is ‘astroturf’. This bill will preserve and protect the programs, the social safety net, but it will make it much more commonsense.”Astroturfing is slang for pretending criticism is coming from the grassroots when, in fact, it is being orchestrated by interested parties.Some advocacy groups have said loss of Medicaid insurance and food stamps will cause great hardship.“These cuts won’t just hurt – they will kill,” the head of the Ohio Nurses Association said, while the American Academy of Pediatrics said the bill would result in “hungry kids” and impossible choices for many families. The American Hospital Association has warned that rural hospitals could close.On the same CNN show on Sunday, the senator Chris Murphy, Democrat of Connecticut, condemned Vought’s and Ernst’s remarks, saying: “Everyone would rather die in old age than at 40.” Murphy said people losing health insurance in order to continue tax cuts for the richest would lead to more deaths and that the bill is “an absolute disaster” and will add to the US deficit.“It’s just unreal the amount of gaslighting this administration is doing,” he said.Fellow Democrat and Georgia senator Raphael Warnock told NBC’s Meet the Press on Sunday that he is in favor of work but that a work-reporting requirement in the bill, as a condition of Medicaid, “is very good at kicking people off their healthcare coverage, it’s not good at incentivizing people to work”. He added that if passed, the legislation would result in “a workforce that’s sicker and poorer” and damage to the US economy.The House speaker, Mike Johnson, who got the bill through the chamber last month but faces a greater challenge from some fellow Republicans in the Senate, told NBC that the bill does not include cuts to Medicaid but instead would strengthen the system and result in reductions in “fraud, waste and abuse”.The House minority leader and New York Democratic representative Hakeem Jeffries predicted that the bill would not pass the Republican-controlled Senate.“Hospitals will close, nursing homes will shut down and people will literally die,” he warned. More