House of Representatives approves Donald Trump's tax plan with remittance tax

The U.S. House of Representatives narrowly approved President Donald Trump's massive tax and spending cuts bill on Thursday, which will now move to the Senate for debate.

The plan, dubbed "the big, beautiful bill" by Trump, passed with a 215-214 majority after a long, all-night session and after conservative Republican lawmakers, who oppose the legislation because they believe it would increase the deficit, held several meetings with the White House to reach an agreement.

The final vote came early this morning, at the close of a marathon negotiation lasting more than 24 hours, which began shortly before noon on Wednesday, with Republicans focused on narrowing the gap.

It will now go to the Republican-majority Senate, where it will be debated with the aim of reaching Trump's Oval Office before the symbolic Fourth of July, American Independence Day.

Shortly after the vote, Trump celebrated the progress of his plan and called on the Senate to "get on with it and get this bill to my desk ASAP! There's no time to waste."

House Speaker Mike Johnson, a Republican, expressed hope that the legislation won't undergo significant changes in the Senate. Johnson had already urged Republican senators last Monday to take into account the difficult balance achieved in the negotiations.

“I encouraged our Senate colleagues to view this as a team effort, as we have, and to modify it as little as possible,” Johnson told reporters.

The mega-bill seeks to extend Trump's tax breaks from his first term (2017-2021) and adds new tax breaks, such as exemptions on tips and payments to buy American-made cars.

It includes increased funding for border management and enforcement of the Republican president's harsh immigration policy, as well as restrictions on food assistance programs and Medicaid and Medicare, among the most contentious issues in the negotiations.

It also stipulates an increase in the limit on local and state tax exemptions, another point of contention among lawmakers.

According to the Congressional Budget Office's (CBO) most recent projection, the bill will add $2.4 trillion over 10 years to the national debt, which is currently estimated at more than $36 trillion.

To offset this expense, the legislation seeks to cut funding for social security programs by more than $1 trillion over 10 years.

Analysts warn that the new legislation could impose cuts of some $500 billion to Medicare to keep the deficit within the legal limits set by Congress.

Under the proposed limitations, some 8.7 million people in the country could be left without Medicaid health coverage, according to the CBO, a nonpartisan accounting office for Capitol Hill.

Trump and House Speaker Mike Johnson, a Republican, have insisted that these cuts are aimed at ending coverage for "illegal immigrants who take advantage" of these benefits.

These provisions have drawn intense criticism from Democrats, who voted against the bill. “Let’s call it what it is: theft,” said Representative Jim McGovern, the ranking Democrat on the House Rules Committee, of the legislation.

“Stealing from those who have the least to give to those who have the most. It's not just bad policy; it's a betrayal of the American people,” McGovern warned.

Medicaid restrictions have been one of the most bitter points of contention between the centrist and conservative wings of the Republican Party. Conservatives are calling for more aggressive and immediate cuts, while moderates are concerned about the impact they would have on their districts.

These disagreements threatened to delay the House's passage of the mega-bill and prompted warnings from the Republican president, who visited Congress to meet with members of his party opposed to the proposal.

On Wednesday afternoon, Trump summoned lawmakers still reluctant to accept the legislation to the White House, and hours later, the undecided ones changed their position.

The plan also includes a controversial 5% tax on remittances sent abroad, which has drawn renewed criticism from Mexican President Claudia Sheinbaum, who calls it "an injustice" and a "discriminatory" measure that would affect Mexican migrants in the U.S.

It also seeks to cut clean energy programs promoted by former President Joe Biden (2021-2025) and tax increases for universities.