'Big Beautiful Bill': US Senate Passes Trump's Key Legislation On Tax, Spending Cuts

The legislation, informally known as the “One Big Beautiful Bill”, consists of $4.5 trillion in tax cuts and $1.2 trillion in spending cuts.

Trump's $3.3 trillion tax and spending cut bill was passed with a 51-50 vote with Vice President JD Vance breaking the tie to pass the tax bill. (Photo source: NDTV Profit)

The US Senate on Tuesday passed US President Donald Trump's tax and spending bill. Senate Majority Leader John Thune and his chamber voted on passage of the legislation after securing enough support among the lawmakers.

Trump's $3.3 trillion tax and spending cut bill was passed with a 51-50 vote with Vice President JD Vance breaking the tie to pass the tax bill.

The package, informally known as the “One Big Beautiful Bill”, consists of $4.5 trillion in tax cuts and $1.2 trillion in spending cuts. It also in entirety includes president's legislative agenda in a single package, reported Bloomberg.

The bill will now go to the House for further voting. However, the approval will not be guaranteed due to opposition from a section of the conservatives and moderates. Additionally, if there are any further changes, then the Senate will have to take up the bill again.

The tax cut bill would avoid large tax increase for individuals at the beginning of next year when the 2,817 Trump tax cuts expire. It would also permanently extend some partly expired business tax breaks this according to the president would contribute to economic growth.

Additionally, the bill, at President Trump's request, adds new tax breaks from tips, car loans and overtime work. It also expands the tax breaks for parents and seniors.

The tax breaks are funded by deep cuts in the renewable energy sector. The cuts are partly paid for by cuts in food stamps and federal student loans.

Also Read: US Stocks Halt Record-Breaking Run As Yields Rise: Markets Wrap

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WRITTEN BY
Pratiksha Thayil
Pratiksha covers markets and business news at NDTV Profit. She has a keen i... more
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