Trump Warns: No Tax Bill Passage Means ’Massive Tax Hikes’—Because Apparently Fiscal Doomscrolling Sells Policy

Former President Trump doubles down on alarmist rhetoric, framing his tax bill as the only bulwark against financial pain—because nothing motivates like fear (and maybe a dash of Wall Street schadenfreude).

Tax policy as high-stakes hostage negotiation—who says governance can’t be entertainment?

Trump tries to reconcile the divided Republicans concerning the bill

Today, President Donald Trump went to Capitol Hill to get Republican lawmakers to agree on a sweeping tax-cut bill that encompasses much of his domestic agenda.

Trump aims to unite the House majority, which is split into groups: hardliners, moderates, and Republican lawmakers from coastal states who want to protect their voters’ ability to deduct state and local taxes.

Hardliners want to cut back on the Medicaid health insurance program. Moderates and some Republican senators have spoken out against this, saying it WOULD hurt the people who elected Trump in November and whose support they will need in 2026, when Congress will be at stake again.

The Medicaid cuts in the bill would disadvantage 8.6 million Americans. Republicans also have different ideas about whether or not state and local taxes (SALT) should be exempt. Only a few incumbents from places like New York and California are very important to the party’s narrow majority in the House. 

The ugly in the “big beautiful bill”

The bill is meant to extend the 2017 tax cuts that were Trump’s signature first-term legislative achievement. It will also add tax breaks on income from tips and overtime pay that were part of his populist push on the campaign trail. This is expected to add trillions to the US deficit.

However, some people in the Trump administration say the plan won’t make the budget deficit worse. 

For instance, Stephen Miran, Chair of the WHITE House Council of Economic Advisers, said that the bill’s efforts to “cut waste, fraud, and abuse are going to end up bringing the deficit down by almost half a point of GDP, or maybe even a little more than that.” As things stand, the measure’s tax breaks add up to about $4.9 trillion. 

On the other hand, Dems are completely against the bill. In fact, they all rejected it. Sen Warren said, “Health care cuts and higher costs for YOU—just to fund tax giveaways for billionaires and big corporations. Nothing beautiful about that.”

More deficit after DOGE failed to reduce it 

Initially, Trump planned to cut US spending through DOGE. Initially, the agency promised to cut $2 trillion from the federal budget,  later, it reduced that target to $1 trillion, then to $150 billion. By May 20 2025, DOGE’s savings targets were way lower than initially promised.

Having failed to do this, Musk was silently wiped out of Washington. This means that the deficit is very much alive. The bill is expected to add between $3 and $5 trillion to the nation’s $36.2 trillion debt over the next ten years. 

This led to Moody’s decision to lower its rating on the US credit rating on Friday. It said that the country’s debt was getting worse and was on track to reach 134% of its GDP by 2035. 

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