USA US Senate votes in favor of Trump's tax bill
A key tax and spending bill pushed by US President Donald Trump has cleared an important hurdle in the US Congress. The Senate approved the project, known as the "One Big Beautiful Bill", by a wafer-thin majority at midday (local time) after a marathon all-night session. The decisive vote was cast by US Vice President JD Vance, who in his role as President of the Senate can cast the deciding vote in the event of a stalemate.
01.07.2025, 18:33
01.07.2025, 21:28
SDA
The House of Representatives had already approved the bill in an earlier version. However, because the Senate introduced amendments, the bill now has to go through the other chamber of Congress again. Only then can it be submitted to the President for signature. The Republicans' aim is to get the package to Trump's desk before July 4 - American Independence Day.
Tax law caused dispute between Trump and Musk
The tax law had previously sparked a dispute between Trump and tech billionaire Elon Musk, which turned into an open mud fight. In social media posts, Musk railed against the law and called for significantly greater spending cuts instead. Musk, who was at times one of the most influential advisors in the White House, also openly threatened to politically attack Republican MPs who voted for the bill in next year's congressional elections. He also brought the formation of a new centrist party into play.
Trump, on the other hand, accused Musk - who is also the head of car manufacturer Tesla - of being outraged by the bill, particularly because of the removal of subsidies and regulations in favor of the electric car industry.
What the law is about - and what is causing criticism
A core element of the law is the permanent extension of tax breaks from Trump's first term in office. These are to be financed by cuts to social benefits, among other things - a point that has met with fierce criticism from the Democrats. The Democratic minority leader in the Senate, Chuck Schumer, for example, complained that millions of Americans would lose their health insurance as a result of the bill.
There are also reservations in the Republican ranks: Fiscally conservative Republicans complain that the law does not go far enough in terms of spending cuts and threatens to drive up the budget deficit further.
Trump himself has been praising the bill for weeks and has successively increased the pressure on his party colleagues to complete the legislative process quickly. After the bill passed the Senate, he called on the Republicans in the House of Representatives on the Truth Social platform to stand united. "We're on schedule - Let's get on with it and get it done before you and your family go on vacation on the 4th of July."
