Donald Trump pushes Senate on $4.5 trillion tax cuts as Medicaid faces axe & Elon Musk slams ¡®disgusting¡¯ bill

U.S. President Donald Trump is pushing for the Senate to pass his extensive tax reform and spending bill by July 4, according to the Associated Press. The bill, which spans over 1,000 pages, narrowly passed the House and now faces challenges in the Senate, where Republicans hold a slim majority. Trump has personally lobbied senators, including a recent one-on-one meeting with Senate Majority Leader John Thune, to accelerate progress on the bill.

GOP faces division in the Senate

Republican senators are revising the bill behind closed doors, but party leaders are struggling to gather the necessary votes. With only a 53-seat majority, GOP leaders are under pressure to align their members. Key concerns revolve around the bill¡¯s proposed $4.5 trillion in tax cuts, offset by reduced spending on Medicaid, food stamps, and green energy programs.

Senator Rand Paul of Kentucky remains a notable Republican holdout. Paul objects to the bill¡¯s $4 trillion increase to the national debt ceiling. Although Trump has criticised Paul publicly, the senator has not shifted his position.

Strong criticism from Democrats and Elon Musk

Democrats continue to oppose the bill, arguing it favors the wealthy at the expense of vital public services. Senate Democratic Leader Chuck Schumer cited Elon Musk¡¯s public comments, where Musk described the bill as ¡°a disgusting abomination¡± and criticised it for excessive government spending.

Musk recently resigned from his advisory role in the Department of Governance (DOGE) and has been vocal against the bill¡¯s contents on X (formerly Twitter). Schumer urged fellow senators to take Musk¡¯s critique seriously as they prepare to vote.

What the bill proposes?

The bill seeks to extend the 2017 tax cuts initiated during Trump¡¯s first term and introduces new measures, such as exempting tips from taxation. It also includes a $350 billion allocation for border and national security, including deportation efforts.

To manage the cost of these tax cuts, Republicans propose reducing federal aid by implementing work requirements for those receiving government assistance. This could lead to the loss of health coverage for approximately 8.6 million people and impact nearly 4 million SNAP recipients. Additionally, the bill would raise the debt ceiling by $4 trillion.

July 4 deadline looms amid fiscal warning

The July 4 deadline is not just symbolic but also practical. Treasury Secretary Scott Bessent has warned that the government could run out of funds by mid-July or early August if the debt ceiling¡ªcurrently at $36 trillion¡ªis not raised.

Senators are currently reviewing changes to the bill, including possibly adjusting tax breaks on auto loans and overtime pay. Another item under review is the $40,000 cap on state and local tax deductions that was introduced in the House version. Medicaid-related provisions, such as the $35 copay and the proposed end of a provider tax used by rural hospitals, have also raised concerns among senators like Josh Hawley, Susan Collins, and Lisa Murkowski.

As the July 4 deadline approaches, the fate of Trump¡¯s tax bill hangs on GOP unity and the Senate¡¯s ability to balance spending cuts with public need.

For more news and current affairs from around the world, please visit Indiatimes News.