US Republicans' Gamble: Balancing Trump's Tax Cuts, Debt, and Medicaid Dilemma

The U.S. congressional Republicans face a conundrum with President Trump's tax-cut agenda, balancing the national debt, and Medicaid's future. Debates persist on Medicaid spending cuts and state tax deductions, with internal party conflicts. Democrats oppose the plan due to its potential threat to public welfare.

The U.S. congressional Republicans are embroiled in a heated debate over the financial implications of President Donald Trump's sweeping tax-cut and immigration reform agenda, currently overshadowed by concerns about Medicaid's future and the nation's climbing debt ceiling.

The discord within the party reflects a clash between traditional conservative principles of minimizing national debt and a faction eager to safeguard Medicaid benefits for working-class constituents, crucial to their political base. The Committee for a Responsible Federal Budget warns that extending Trump's 2017 tax cuts could inflate the national debt by $11 trillion over the next decade.

Republican factions, including the ultraconservative House Freedom Caucus, are pushing for drastic spending cuts, with proposals to slash $880 billion from Medicaid and green energy credits. In contrast, moderates suggest capping Medicaid cuts at $250 billion, emphasizing the need to preserve benefits and retain some tax incentives for farmers.

(With inputs from agencies.)