Trump under pressure: Committee blocks central tax plans!

Trump under pressure: Committee blocks central tax plans!

USA - President Donald Trump has suffered a significant setback in his central tax and expenditure law. The household committee of the House of Representatives did not bring the draft law designed to the plenum for further advice after five Republican MPs agreed with the Democrats. These deviators criticize that the project leads to a higher budget deficit and that the desired savings in government expenditure are not sufficient. The financial package should actually implement the central election promise of Trump, including permanent tax relief from its first term, but the plans for considerable resistance.

Trump is now pushing his party colleagues on the Truth platform Truth Social. The dispute over the law has been running for several days, and in a more than 17-hour marathon session at the beginning of the week, the MPs seemed temporarily exhausted. Despite the setback, however, it remains an important step for Trump and the Republican party leadership, especially for the speaker Mike Johnson, the farewell of the law, such as OE24 describes.

background and political framework conditions

Trump had signed tax decrees at the beginning of his term and initiated various tax measures that aim to promote the competitiveness of the US economy. However, the political context is complex: the Republican party became the majority in both chambers of the US Congress in the last elections. Trump received 76,838,984 votes, which makes 50 percent of the voters. The majority in the Senate consists of 53 Republicans, while the house is divided with 220 Republicans and 215 Democrats, such as dihk explained.

As part of his tax policy, Trump plans to reduce corporate tax rate from 21% to 15% and the extension of the tax benefits of the Tax Cut and Jobs Act (TCJA). The reintroduction of the full tax deduction of states and local taxes as well as the creation of new tax incentives for key technologies are also on the debate. The Universal Baseline Taiff also seems to be an important concern of 10 to 20 percent on imports, supplemented by tariffs on imports from China and Canada.

The economic effects of this tax policy could be significant, especially for companies in Germany. Leading economic services could be attracted to attractiveness in the United States, while German companies may be under increased competitive pressure. Political turbulence about the current legislative project could further endanger the economic goals of the Trump administration.