Senate advances Trump tax bill criticised for favouring the wealthy

Reuters

The U.S. Senate advanced President Trump’s sweeping tax and spending bill on Saturday despite Democratic criticism that it benefits the wealthy over social programmes.

The Republican-controlled U.S. Senate voted 51-49 to open debate on President Donald Trump's sweeping tax-cut and spending bill during a tense weekend session marked by delays and division. Democrats strongly criticised the legislation, saying its tax cuts would disproportionately benefit the wealthy while harming social programmes for lower-income Americans.

Two Republican senators, Thom Tillis and Rand Paul, joined Democrats in voting against opening debate. Tillis objected to Medicaid cuts he said would harm his state of North Carolina, while Paul opposed adding $5 trillion to the national debt.

Democrats demanded the entire 940-page bill be read aloud in the chamber, delaying proceedings until Sunday afternoon. Senate Democratic leader Chuck Schumer condemned Republicans for pushing through the bill without proper scrutiny, saying, "Senate Republicans are scrambling to pass a radical bill, released to the public in the dead of night, praying the American people don't realize what's in it."

Once the reading is complete, lawmakers will hold up to 20 hours of debate followed by a marathon amendment session before the final Senate vote, likely by Monday.

The bill includes extensions of Trump’s 2017 tax cuts, further tax reductions, and increased military and border security spending. The Joint Tax Committee projected the tax provisions would reduce government revenue by $4.5 trillion over the next decade, deepening the $36.2 trillion U.S. debt.

Despite this, the White House claimed the legislation would reduce the annual deficit by $1.4 trillion. Critics, however, argued the cuts would favour high-income earners at the cost of essential social programmes such as Medicaid and food assistance.

President Trump celebrated the vote on social media, calling it a "great victory" for his "great, big, beautiful bill."

Elon Musk also criticised the bill, calling it "utterly insane and destructive" due to provisions ending tax breaks for electric vehicles, warning it would destroy American jobs and harm strategic interests.

Republican leaders, including Senate Majority Leader John Thune and Vice President JD Vance, spent hours behind closed doors persuading sceptical senators. Hardline Republicans Rick Scott, Mike Lee and Cynthia Lummis ultimately supported the bill. Senator Ron Johnson switched his vote to yes after initially voting no.

The legislation includes $25 billion to support rural Medicaid providers between 2028 and 2032 and raises the cap on federal deductions for state and local taxes to $40,000, with adjustments through 2029. This measure aims to win support from House Republicans in high-tax coastal states.

Democrats plan to introduce amendments to reverse Republican spending cuts to healthcare programmes for the elderly, poor, and disabled, as well as food aid for low-income families.

The bill would also raise the Treasury Department’s debt ceiling to avoid a potential default. If passed by the Senate, it will return to the House of Representatives for final approval before reaching Trump’s desk to be signed into law.

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