US Senate Republicans approve Trump tax, spending cuts

The United States Senate on Saturday morning approved a budgetary blueprint that will extend trillions of dollars from President Donald Trump's 2017 tax breaks and cut government spending.

The Republican-controlled upper house of Congress approved what Trump has called his "big, beautiful bill" by 51 votes to 48.

What are the implications of the vote?

The vote after an all-night legislative session largely went according to party affiliations, with two dissensions from prominent Republican senators Susan Collins of Maine and Rand Paul of Kentucky.

The approval will allow the GOP — which has majorities in the Senate and the House — to pass tax cuts through both congressional chambers, without having to rely on votes from the opposition Democratic Party.

The bill comes amid recent economic turmoil in the US caused by Trump's imposition of tariffs on the country's trading partners.

The tariffs — which are taxes on foreign goods imported to the US — have sent global markets tumbling, as analysts warn of a possible recession and rising costs for American consumers.

Analysts estimate that the budget framework will add around $5.7 trillion (€5.2 trillion) to the US government's debt in the coming 10 years, although Republicans argued it will cost $1.5 trillion.

The bill also seeks to raise the government's debt ceiling by $5 trillion, which Congress has to approve before the summer recess to avoid defaulting on $36.6 trillion worth of debt.

What did senior Republicans and Democrats say?

Republican Senate Budget Committee Chairman Lindsey Graham claimed allowing Trump's 2017 cuts — his first term's hallmark legislative achievement — to expire would mean a 22% tax increase for the average taxpayer.

The cuts in 2017 also saw top corporate tax reduced from 35% to 21%. That reduction is not due to expire.

Democrats accused Republicans of sacrificing crucial welfare programs to help pay for the massive tax breaks that they say will disproportionately benefit the country's wealthiest citizens.

"The Republican bill that now sits before the Senate is poison," Senate Democratic Leader Chuck Schumer said Friday, calling Trump's policies "a disaster."

"But as Americans learn that Republicans are doing it simply to give tax cuts to the ultra-rich, an electric shock is going to go through the American people," Schumer added.

Why did the session last so long?

The debate, which began Thursday and lasted until early Saturday morning, saw Democrats propose over 20 amendments to the budget package put forward by Senate Republicans.

Some of those proposed amendments included banning tax cuts for the mega-wealthy, to end Trump's tariffs, curb his attempts to reduce government spending and to protect Social Service and related services, including Medicaid.

The only proposals to receive backing from the GOP were those protecting Medicare — a federal health insurance program from seniors — and Medicaid — which is a joint state and federal program that provides health insurance to people with limited income.

Edited by: Jenipher Camino Gonzalez