Key Facts
• July 3: U.S. House passed a $4.5 trillion tax cut bill (650 trillion yen).
• Vote results: 218 in favor, 214 against; 2 Republicans opposed the bill.
• July 4: President Trump to sign the bill into law on Independence Day.
• Bill includes permanent extension of 2017 tax cuts, reducing top income tax rate to 37%.
• Temporary tax relief for workers, including tips and overtime deductions, introduced.
• Debt ceiling raised by $5 trillion to avoid federal default.
• Medicaid work requirements tightened to secure funding for tax cuts.
• Congressional Budget Office projects $3.4 trillion deficit increase over 10 years.
Summary
The U.S. House approved a $4.5 trillion tax cut bill on July 3, fulfilling a key Trump administration pledge. The legislation, set to be signed into law on July 4, permanently extends 2017 tax cuts, lowers the top income tax rate to 37%, and introduces temporary worker-focused tax relief. It also raises the debt ceiling by $5 trillion and tightens Medicaid work requirements to fund the cuts. While expected to boost the economy, the Congressional Budget Office warns of a $3.4 trillion deficit increase over the next decade, raising concerns about fiscal sustainability.
