Showdown in the House: Tax Cuts and Budget Battle

The U.S. House of Representatives is poised to vote on a controversial plan to extend Trump's 2017 tax cuts, coupled with significant spending reductions. The proposal has faced opposition from some Republicans and all Democrats, raising concerns about its potential economic impact and political viability.

The U.S. House of Representatives is set to advance a controversial measure that aims to extend President Donald Trump's 2017 tax cuts, despite opposition from a faction of hardline Republicans. The bill faces criticism for not including sufficient spending cuts, as demanded by some members of the GOP.

Republican members led by House Speaker Mike Johnson are pushing for around $2 trillion in spending cuts over the next decade, aiming to offset the $5.7 trillion the tax cuts would add to the national debt. Opposition from at least four House Republicans could threaten the bill's passage, as Democrats are uniformly against it.

The political stakes are high, with the measure linking tax cuts to increased border enforcement and potential reforms on overtime pay and tips. The budget resolution is not legislative law but sets the stage for detailed tax and spending policies. Failure to pass it could hinder Trump's economic agenda amid rising economic concerns.

(With inputs from agencies.)