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The Republicans’ $3 Trillion Vanishing Act

The Daily

2025/07/02
The Daily

The Daily

2025/07/02
In a closely watched legislative move, the U.S. Senate approved a major domestic policy bill backed by former President Trump, using a procedural maneuver to push forward a sweeping agenda that includes permanent tax cuts and significant changes to federal spending. The bill now heads back to the House for a final vote, but its financial implications have sparked debate among economists and policymakers.
The podcast delves into the recent passage of a Republican-backed domestic policy bill in the Senate, which relies on unconventional budgeting tactics to justify long-term tax cuts without violating deficit rules. The legislation could add over $3 trillion to the national debt, raising concerns about the sustainability of U.S. fiscal policy. Experts warn that this approach may normalize risky accounting practices across both parties, while global investors grow wary of the growing U.S. debt burden. There are fears that increasing reliance on new debt to service old obligations could lead to a self-reinforcing cycle of borrowing, higher interest costs, and reduced economic resilience during future downturns.
00:00
00:00
Vice President JD Vance casts tie-breaking vote in Senate
09:47
09:47
CBO analysis shows Republicans claim a half-trillion-dollar debt reduction over ten years using their accounting standard.
13:19
13:19
The bill could add about $3 trillion to the deficit.
20:05
20:05
Japan's hint of selling U.S. debt shook the financial system
26:28
26:28
Trump calls Zoran Mamdani a communist after his primary win.