High Stakes Showdown: Extending Trump's Tax Cuts Amidst U.S. Debt Surge

The U.S. House of Representatives advanced a measure to extend President Trump's 2017 tax cuts. Republicans proposed $2 trillion in spending cuts to offset increased national debt. The bill's advancement puts the U.S. economy at risk, with possible cuts to Medicaid causing concern among Democrats and moderate Republicans.

On Wednesday, the U.S. House of Representatives narrowly advanced a measure to extend President Donald Trump's 2017 tax cuts, overcoming opposition from Democrats and three Republicans. Hardline Republicans demanded deeper spending cuts, with the House voting 216-215 to authorize a vote on the contentious bill.

Republicans led by House Speaker Mike Johnson proposed $2 trillion in spending cuts over a decade to counter the estimated $5.7 trillion addition to the national debt. The stakes are high as the U.S. economy faces volatility from tariff threats, while negotiations loom over the debt limit increase.

The bill's provisions could impact Medicaid, worrying Democrats and some Republicans. Congressman Greg Steube expressed support following a discussion with Trump, while Democratic Representative James McGovern criticized potential Medicaid cuts, intensifying the legislative battle.

(With inputs from agencies.)