Donald Trump faced an unexpected blow from within his own party. His highly anticipated tax reform proposal, which aimed to extend the 2017 tax cuts and bring in new benefits for working Americans, was shut down by Republicans in the House of Representatives. To make matters worse, Moody’s stripped the U.S. of its last AAA credit rating, citing ballooning debt and a lack of spending discipline.

🔹 Republicans Turn Against Trump’s Plan

In a key vote in the House Budget Committee, five Republican members unexpectedly voted against the proposal, joining Democrats and blocking the bill. The dissenters — Ralph Norman, Chip Roy, Andrew Clyde, Josh Brecheen, and Lloyd Smucker — objected to the lack of deeper spending cuts, especially in Medicaid and green energy subsidies.

“We’re writing checks we can’t cash, and our kids will be left to pay the bill,” warned Chip Roy.


Trump urged his party to “UNITE” and slammed internal division, but it was too late — his own party blocked the bill, which included provisions like eliminating taxes on tips and overtime, boosting defense spending, and increasing funding for immigration enforcement.

🔹 Moody’s Sends a Stark Warning: AAA Gone, Debt Could Hit 134% of GDP

On the same day Trump’s bill failed, Moody’s issued a scathing report lowering the U.S. credit rating from AAA. The agency cited unsustainable national debt and warned that by 2035, U.S. debt could reach 134% of GDP, up from today’s 98%.

“Successive U.S. administrations and Congress have failed to implement measures to reverse the trend of large annual deficits and rising interest costs,” Moody’s stated.

This downgrade intensifies pressure on lawmakers, especially as Congress struggles to agree on basic budget reforms.

🔹 Hardliners Demand Tougher Conditions

The bill’s Republican opponents are pushing for:

🔹 Immediate work requirements for Medicaid recipients (not in 2029)

🔹 Elimination of green energy tax credits backed by Democrats

🔹 Stricter fiscal discipline

Lloyd Smucker, one of the five defectors, changed his vote from “yes” to “no,” saying it was a procedural step that would allow the bill to be revised and reintroduced.

Meanwhile, Republican Jodey Arrington, chair of the committee, said he would revisit the proposal in a rare Sunday session, insisting that the bill fulfills campaign promises made after Trump’s political comeback.

🔹 Analysts Warn Bill Would Worsen the Deficit by Trillions

Independent projections estimate that Trump’s tax proposal would add more than $3.7 trillion to the federal deficit over 10 years. The plan included not only income tax breaks and tip exemptions but also the repeal of taxes on gun silencers and an expansion of the 2017 tax cuts.

Democrats heavily criticized the plan. Brendan Boyle, the committee’s ranking Democrat, warned that Medicaid cuts could strip 8.6 million Americans of health insurance.

“No other piece of legislation, no prior law, and no historical event has caused so many Americans to lose healthcare coverage — not even the Great Depression,” Boyle stated.

🟠 Summary: Trump Faces GOP Resistance as Moody’s Rings Fiscal Alarm

Trump sought to launch a new tax revolution, but was blocked by his own party’s fiscal conservatives demanding deeper cuts. Meanwhile, Moody’s downgrade of the U.S. credit rating signals that the country’s fiscal policy is unsustainable, threatening investor confidence and long-term economic stability.


#TRUMP , #USPolitics , #CryptoPolitics , #CryptoMarket , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“