Investing.com-- A key Congressional committee in the U.S. House of Representatives approved President Donald Trump’s sweeping tax bill on Sunday, setting it up for a House vote this week amid resistance from a group of Republicans.
The Republican-Controlled House approved the tax bill for vote in a rare Sunday evening Committee session, after days of sparring among Republicans over potential spending cuts put forward by the bill.
The bill aims to enact sweeping tax cuts, which include eliminating taxes on tips and overtime income– both campaign promises from Trump. The bill also intends to boost defense spending and provide funding for Trump’s immigration crackdown.
But Republicans are split over how to fund the planned spending and tax cuts, which will require spending cuts in other aspects of the government. Hardliners have proposed cutting the Medicaid health insurance program– a proposal that has been staunchly opposed by moderates and less conservative senators, given that it could deny healthcare to nearly 10 million Americans.
Sunday’s approval now sets up the bill for a vote this week. The bill’s passage could represent some progress for Trump in his campaign agenda, especially as his efforts to cut government spending through the Department of Government Efficiency largely fell short of expectations.
Approval of the tax bill also comes just days after Moody’s downgraded the United States’ sovereign credit rating, citing concerns over high government debt and stretched fiscal spending.
Trump has long claimed that his trade tariffs will generate more federal revenue and help fuel his spending cuts. But the revenue generated from import tariffs so far is a fraction of what it would take to fund his proposed cuts.
Trump’s constant flip-flopping on his tariffs– especially a deescalation with China last week– also presents uncertainty over just how much revenue his tariffs will generate.