“This will add $20,000,000,000,000 to the debt over the next 10 years.” – Republican Thomas Massie
Massie is the only one being honest. And Rand Paul.
— Spencer Hakimian (@SpencerHakimian) May 21, 2025
The House is set to vote tonight on a sweeping tax bill that could reshape the financial landscape for millions of Americans. The legislation promises tax cuts for 80% of households in 2026, but the benefits are heavily concentrated among the wealthiest earners. 60% of total tax relief will go to the top 20%, while lower-income Americans face reduced gains and cuts to essential programs.
Millions risk losing healthcare coverage under the bill. The latest estimates show 7.6 million Americans could be pushed off Medicaid, with stricter eligibility checks and work requirements cutting off access. Funding for state Medicaid programs covering undocumented children is also on the chopping block, leaving vulnerable populations without coverage.
Defense spending is ramping up. The bill sets aside $25 billion for the Golden Dome missile defense system, part of a $150 billion military expansion. Defense contractors tied to the project stand to gain, with new funding flowing into shipbuilding, weapons development, and aerospace projects.
Financial markets are already reacting. The 20-year Treasury yield has surged past 5%, a sign of deepening investor concerns over the government’s ability to manage its growing debt. The GOP tax bill would add $6 trillion to the deficit, raising fears of further credit downgrades and forcing the Federal Reserve into action. Analysts warn that borrowing costs will rise, putting additional pressure on businesses and households.
Lawmakers face a critical test tonight. If the bill passes unchanged, millions will see their financial outlook shift overnight. The impact on healthcare, defense, and credit markets could define the economic trajectory for years to come.
Sources
https://www.modernhealthcare.com/politics-policy/tax-bill-medicaid-house-budget-committee
https://thehill.com/business/budget/5308446-trump-gop-bill-medicaid-salt-taxes