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Home CRYPTO

Trump’s $3.8 Trillion Tax Cut Bill Advances Amid Deficit Concerns: Here is the Truth

Michael Juanico by Michael Juanico
May 21, 2025
in CRYPTO, FINANCE, OPINION, POLITICS
Reading Time: 3 mins read
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  • House Republicans are racing to pass Trump’s massive tax cut bill, despite internal GOP divisions and a projected $3.8 trillion deficit increase.
  • The bill includes new tax perks, deep cuts to Medicaid and SNAP, and $350B in defense and immigration spending.
  • Trump is pressuring lawmakers hard, but skepticism from both conservatives and moderates is keeping the outcome uncertain.

House Republicans are rushing to pass a massive tax break package — branded the “One Big Beautiful Bill Act” — as early as Wednesday, after late-night dealmaking and a firm push from President Trump himself. The package, Trump’s top legislative priority, seeks to extend and expand 2017-era tax cuts while introducing new perks like no taxes on tips and bigger deductions for families and seniors. But internal divisions among Republicans remain, especially over the bill’s staggering price tag and deep cuts to social programs.

🚨 TRUMP: WE'RE VERY CLOSE ON THE BIGGEST TAX CUT BILL IN HISTORY pic.twitter.com/OMDF7CWwIH

— BlockNews (@blocknewsdotcom) May 21, 2025

Trump made it clear: get it done. But with a fresh CBO analysis showing the bill would add $3.8 trillion to the deficit, and only offsetting $1 trillion through spending cuts, some GOP lawmakers are hesitating. Moderates are worried about Medicaid cuts and green energy rollbacks, while conservatives want faster, sharper budget reductions. Despite the friction, Speaker Mike Johnson insists, “We are going to get this done.”

Cuts, Credits, and Controversy

The bill not only extends Trump’s 2017 tax cuts, but also adds $350 billion in new spending — including $150 billion for defense initiatives like Trump’s proposed “Golden Dome” missile shield, and another $200 billion for immigration enforcement. Meanwhile, safety net programs like Medicaid and SNAP would face strict new work requirements. Able-bodied adults without dependents would need to work 80 hours a month, and the age cutoff for work mandates would rise from 54 to 64.

The tax benefits themselves are broad — $32,000 standard deduction for joint filers, $2,500 child tax credit, and even a $4,000 deduction for Social Security recipients. But critics warn the bill favors the wealthy and shifts burdens onto low-income Americans. The CBO estimates over 8 million would lose health insurance, while 3 million could lose food assistance monthly.

Divided GOP Faces Key Vote

Republican leaders have been scrambling to reconcile conflicting demands. Lawmakers from high-tax states like New York and California are demanding higher SALT deductions for their constituents. In response, the cap would rise from $10,000 to $30,000 for many filers — with some pushing for an even higher threshold.

Trump met privately with GOP lawmakers Tuesday, doubling down on his pressure campaign. “Anyone who doesn’t support the bill would be a fool,” he said. Still, some conservatives, including Rep. Thomas Massie, remain firm no’s, while others in the House Freedom Caucus say more work is needed.

High Stakes and Uncertain Outcome

With a Memorial Day deadline looming, Republicans are sprinting to bring the bill to a vote, but the outcome remains uncertain. Senate passage is another hurdle entirely, especially with united Democratic opposition. House Democrats argue the bill is being jammed through without transparency — labeling it a cruel and damaging piece of legislation.

the Bill Includes New Tax Perks Deep Cuts to Medicaid and Snap and 0b in Defense and Immigration Spending

Despite the drama, the GOP’s push signals how much of their political capital has been poured into this one bill. The next few days will determine whether Trump gets his legislative win — or whether internal fractures stall one of the boldest policy moves of his second term.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: House RepublicansPresident TrumpRepublicanstax cutsThomas Massie
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Michael Juanico

Michael Juanico

Michael is a BSBA Management graduate from Mindanao State University and has been a professional content writer since 2019. He began exploring cryptocurrency in 2021 and has since made blockchain and digital assets his primary focus. For nearly four years, Michael has contributed research and editorial content at Aiur Labs and BlockNews, producing clear and accessible coverage of market trends, trading strategies, and project developments. He is transparent about his personal holdings in Bitcoin, TRON, and select meme tokens, combining writing expertise with hands-on market experience to deliver trustworthy insights to readers.

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