With Donald Trump's tax and agenda bill on the brink of the House collapse, the president demanded that Republicans unite to ensure legislation becomes law.
"The Republicans must unite, 'a, big beautiful bill!'" Trump wrote on "Society of Truth" Friday, claiming that it would "cut taxes for all Americans."
One of the main priorities of the settlement plan is to codify Trump's 2017 tax cuts (which greatly utilize wealthy Americans) into permanent law. But the tax packages generated by the House and Average Committee do not actually reduce taxes for all Americans. In fact, it will raise taxes for the poor.
Trump's settlement bill would raise taxes for Americans who earn less than $15,000 in 2027, according to an analysis by the Congressional Joint Tax Committee. By 2029, the legislation will continue to increase taxes on these people, as well as Americans who earn $15,000 and $30,000.
Meanwhile, millionaires will see tax cuts every year in their analysis. According to JCT analysis, over the four-year two years, the average tax reduction for millionaires will be greater than that of Americans overall.
Americans with revenues below $30,000 are expected to pay nearly $18 billion in taxes from 2027 to 2033. Meanwhile, individuals with incomes of more than $1 million will collectively receive a total of $242 million in tax cuts.
Rep. Don Beyer (D-Va.) in a thread posted to the Blues on Wednesday night, why “ten millions of Americans in the Republican bill will see tax increases in 2029 under the Republican bill.” Republican legislation will only temporarily reduce taxes on tips and overtime pay, two of Trump's main campaign promises for 2024 - "rather than the richest 1% cut, which is permanent for them," he wrote.
On Friday, at least four Republican members of the House Budget Committee withdrew their support for the settlement bill, failing to pass on large-scale legislation to the entire chamber at the first vote. Rep. Ralph Norman (RSS.C.) told reporters he was a tough “no” until legislation includes language that would implement Medicaid job requirements faster than the current 2029 start date and push for the repeal of the inflation-lowering bill Green Energy Tax Credit.
"If we were to keep having (…) sound Americans get checks, illegal foreigners get checks, subsidies shouldn't get their company, I'd go out," Norman said.
Changes to the settlement bill currently have been expected to result in 10 million adults and children losing insurance for Medicaid, low-income Americans and disabled people.
If it manages to pass the House, where Republicans have a narrow seven-vote majority, legislation may already be at risk in the Senate. Last week, Senator Josh Hawley (R-Mo.) wrote in an article The New York Times “Building our large bills with cuts in health insurance for working poor” is “ethically wrong and politically suicide”.
“Republicans need to open their eyes: Our voters support social insurance plans. On top of that, our voters rely on these plans. There is a reason why Republicans are becoming increasingly unfriendly to the economy of thinking.
Although clear indicators suggest that the Republican reconciliation plan will be a disaster for working-class Americans, the party appears to force them to appease Trump through Congress in the short and long term. Even more frustratingly, most opposition parties are not worried about their voters, but rather believe legislation will not tear social security networks apart quickly enough.