Trump Signs Major Tax and Spending Cut Bill During Fourth of July Celebration

President Donald Trump has enacted a significant package of tax breaks and spending cuts. This legislation, which he signed outside the White House, received strong Republican backing in Congress. The move is seen as a key domestic achievement that could shape his second-term legacy. Trump was joined by Republican lawmakers and Cabinet members during the signing ceremony.

Fighter jets and a stealth bomber flew over the White House Fourth of July picnic as Trump and First Lady Melania Trump appeared on the balcony. "America's winning, winning, winning like never before," Trump declared, referencing last month's bombing campaign against Iran's nuclear program. He added, "Promises made, promises kept and we've kept them."

Republican Support and Legislative Victory

The legislation passed the House with a largely party-line vote after months of GOP efforts to consolidate their priorities into one budget bill. This approach prevented Senate Democrats from blocking it indefinitely through filibustering. In the Senate, the bill passed by a single vote, with Vice President JD Vance casting the tie-breaking vote.

Democrats have criticised the package as favouring the wealthy at the expense of lower-income individuals. Democratic leader Hakeem Jeffries called it a "crime scene" during an extended speech that delayed its passage. The legislation extends Trump's 2017 tax cuts while reducing Medicaid and food stamps by USD 1.2 trillion.

Impact on Health Insurance and Immigration

The Congressional Budget Office estimates that nearly 12 million more people will lose health insurance under this law. It also includes significant increases in immigration enforcement. The package reverses policies from previous Democratic administrations, rolling back Obama's Medicaid expansion and Biden's renewable energy tax credits.

Trump celebrated his political win in Iowa, where he attended events marking the country's upcoming 250th birthday. He expressed gratitude to Republican lawmakers for their support, stating, "I want to thank Republican congressmen and women because what they did is incredible." He also criticised Democrats for opposing the bill.

Public Opinion and Future Implications

Despite Trump's claims of popularity, public opinion on the package is mixed. A Washington Post/Ipsos poll shows support for increasing child tax credits and eliminating taxes on tips but opposition to cutting food assistance funding and spending on migrant detention centres. About 60% find it unacceptable that the bill could increase US debt by over USD 3 trillion in a decade.

The legislation is expected to be a contentious issue in next year's midterm elections. Democrats are planning rallies, voter registration drives, attack ads, bus tours, and vigils to highlight its controversial aspects.

Upon returning to Washington, Trump described the package as "very popular," though polling suggests otherwise. The package's impact on health insurance and federal deficit will likely remain central topics in political debates.

With inputs from PTI