Senate Republicans Approve Trump's Tax Cuts Framework 51-48

The Senate Republicans, in a late-night session, approved a framework for President Donald Trump's proposed tax breaks and spending cuts. The vote, which took place overnight and into early Saturday morning, was 51-48, with a majority of Republicans supporting the measure. However, two prominent Republican senators, Susan Collins of Maine and Rand Paul of Kentucky, voted against the framework, expressing concerns about the potential impact on federal deficits and the overall economic landscape.

The approval of this framework is a significant step towards realizing Trump's agenda, which includes a "big, beautiful bill" that aims to cut taxes and reduce spending. The framework now moves to the House, where Speaker Mike Johnson could bring it up for a vote as early as next week. The House and Senate will need to reconcile their differences, as the House Republicans had already approved their version with USD 4.5 trillion in tax breaks over 10 years and USD 2 trillion in budget cuts.

The Senate's framework includes USD 175 billion to bolster Trump's mass deportation efforts and another USD 175 billion for the Pentagon to build up the military. The framework also pulls in other GOP priorities, such as extending the 2017 tax cuts, which are set to expire at the end of this year. Republicans argue that unless Congress acts, these tax cuts will result in a tax increase for most American families.

Democrats, on the other hand, have accused Republicans of laying the groundwork for cutting key safety net programs to help pay for more than USD 5 trillion in tax cuts that they say disproportionately benefit the rich. Senate Democratic Leader Chuck Schumer criticized the Republicans' approach, stating that Trump's policies are a disaster and that Republicans could snuff out the economic turmoil if they wanted.

The debate in the Senate was intense, with Democrats proposing amendments to ban tax breaks for the super-wealthy, end Trump's tariffs, and protect Medicaid, Social Security, and other services. One amendment sought to prohibit military officials from using any commercial messaging application to transmit war plans. All of these amendments failed, except for a GOP amendment to protect Medicare and Medicaid.

Senator John Barrasso, the No. 2 ranking Republican senator, stated that the Senate budget plan fulfills the promises made to secure the border, rebuild the economy, and restore peace through strength. However, Senator Bill Cassidy of Louisiana expressed misgivings about the tax breaks adding to the federal deficits and said he has assurances that Trump officials would seek the cuts elsewhere.

The framework now faces several challenges, including the House's rejection of the Senate's scoring method for extending the tax cuts and the disagreement over increasing the debt limit. The House had boosted the debt limit by USD 4 trillion in its plan, but the Senate upped it to USD 5 trillion to push any further votes on the matter until after next year's midterm elections.

The Senate calls for just USD 4 billion in spending cuts, but GOP leadership emphasizes that this is a low floor and that committees will be on the hunt for far more. Already, the GOP leaders are confronting concerns from fiscal hawks in deep red states and congressional districts who want trillions of dollars in spending cuts to help pay for the tax breaks. At the same time, dozens of lawmakers in swing districts and states are worried about what those cuts will mean for their constituents and for their reelection chances.

The GOP leadership has encouraged members to just get a budget plan over the finish line, saying they have time to work out the tough questions of which tax breaks and spending cuts to include. Extending the 2017 breaks would cut taxes for about three-quarters of households but raise them for about 10 percent. In 2027, about 45 percent of the benefit of all the tax cuts would go to those making roughly USD 450,000 or more.