President Donald Trump's multi-trillion-dollar tax package—also known as the "Big, Beautiful Bill"—cleared the House in a last-minute 215–214 vote on Thursday morning. The bill now moves to the Senate, where Republicans are calling for major revisions ahead of an expected vote in August. It aims to prevent a year-end tax hike and a potential debt default but would significantly increase the near-term federal deficit.
The 215-214 House vote, with one abstention, was met with loud cheers by House Republicans. Some of the key provisions include:
Extension of Trump-era tax cuts and new relief, such as exempting tips and overtime from taxation.
The state and local tax (SALT) deduction cap will be increased to $40,000, with phase-outs for high earners.
Cuts to safety-net programs such as Medicaid and food stamps, alongside new work requirements starting in December 2026.
Rollbacks on clean energy tax credits, boosting fossil fuel incentives.
Major increases in military and border security spending.
New taxes targeting elite universities (e.g., Harvard and other Ivy Leagues) and immigrant remittances.
The elimination of EV tax credits, replaced by interest deductions on U.S.-built vehicle loans
It is interesting to note that Reps. Warren Davidson of Ohio and Thomas Massie of Kentucky were the only Republicans to vote against the Big, Beautiful Bill. They warned about mounting deficits that would result if the bill were passed.
We provided Zero Hedge Pro Subs with an in-depth analysis of how the Big, Beautiful Bill would surge near-term deficits, adding about $5 trillion in debt.
Read more here...
In the bond market, the US 30-year Treasury yield moved higher after the bill narrowly passed the House, hitting 5.12%, the highest level since October 2023. This level is nearing its highest point since 2007.
With Treasury yields soaring, perhaps it's time for Treasury Secretary Scott Bessent to fire up the "big toolkit"...
Rep. Nathaniel Moran (R., Texas) stated: "This bill is our opportunity to deliver on the promises we made. At its core, the one big, beautiful bill is about more than dollars and cents. It's about liberty and empowering the American people."
The Wall Street Journal noted, "Republicans are aiming to get the bill to Trump's desk by July 4. The real deadline might be a bit later."
Democrats blasted the bill as taking money away from the social safety net to fund tax cuts for the wealthy...
"It's really one big broken promise," said Rep. Suzan DelBene (D., Wash.), adding, "Republicans have spent months fighting over how many Americans they’re going to kick off Medicaid and how fast."
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