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The large tax cutting down the whales bill passed by the U.S. House of Representatives – When will Trump sign it? What will the impact be?
The U.S. House of Representatives has officially passed President Donald Trump's "Beautiful Big Bill," one of his most comprehensive legislative packages. This bill, which brings together a range of priorities from tax cuts to border security, aims to enact a series of goals that the Republican Party has long sought to achieve. The bill includes the implementation of Trump's permanent tax cuts that took effect in 2017, not taxing tip income, increasing spending on immigration law enforcement, and building the border wall. Trump stated weeks before taking office that the bill would be a big and strong package that could "put the country back on track." "Members of Congress are drafting strong legislation that will bring our country back and greater than ever," Trump stated on January 5. "We must secure the borders, unleash America's energy, and extend the Trump Tax Cuts, the largest tax cuts in history." The Republican Party has taken advantage of its majority in both chambers to pass the bill in the House of Representatives on May 22. However, some changes were made in the Senate to pass the bill with a simple majority vote. After these changes, the bill was sent back to the House for a final vote and was approved in its final form in the vote held today. The White House announced that President Trump will sign the "Great Bill" at midnight on Friday. Economists are divided on the economic impact of the law. Bernard Yaros, chief economist for the U.S. at Oxford Economics, predicts that spending will increase in the short term and the economy will be boosted, particularly through cutting down the whales on tips, overtime pay, auto loan interest rates, and expanding state and local tax credits. But he said that in the long run, these personal tax cuts will lead to rising prices and will limit economic growth. Yaros also noted that the impact of cutting down social support programs like Medicaid and SNAP and the cancellation of climate incentives under the Inflation Reduction Act will be more apparent starting in 2026, and real GDP will only increase by 0.1 percent by 2030. In response, the Main Street Alliance, representing over 30,000 small businesses in the United States, called the bill "the big, ugly bill." "This bill abandons the promise of freedom and justice to serve the interests of monopolistic corporations and billionaire donors, while working families still have to pay for the bill," they stated in a declaration. The International Monetary Fund (IMF) also warned about this law. IMF spokesperson Julie Kozack stated that Trump's new tax law could make it more difficult to reduce budget deficits and public debt in the coming years. "This law contradicts the goal of reducing debt in the medium term," Kozack said, adding that according to data from the Congressional Budget Office, this law would increase the budget deficit by an additional 3.3 trillion dollars.