Donald Trump’s flagship tax bill passes Congress in tight vote

Donald Trump hit the phones late at night to bring Republican rebels into line and make sure his big beautiful bill is signed into law on July 4.

Donald Trump will sign his massive big beautiful bill into law on July 4, the Independence Day deadline he set for the passage of his legislative centrepiece after a marathon congressional sitting delivered the US President a major political victory.

Posting on his Truth Social platform, the US President said it was “one of the most consequential Bills ever. The USA is the “HOTTEST” Country in the World, by far!!!”

The bill was passed by 218 to 214 votes with two Republican holdouts, Thomas Massie from Kentucky and Brian Fitzpatrick from Pennsylvania, teaming up with the Democrats in opposition.

House Speaker Mike Johnson worked around the clock to marshal the support of reluctant Republicans and was aided by the US President himself who hit the phones after midnight to get the holdouts over the line.

Treasury Secretary Scott Bessent said the passage of the bill had “set the stage for the coming Golden Age as we prepare to celebrate the 250th year of our great nation.”

He said the bill had “prevented the largest tax hike in history” and that President Trump was delivering on his “promises to Main Street while strengthening critical programs, national security, and America’s manufacturing sector.”

“The One, Big, Beautiful Bill will unleash the full potential of the US economy,” he said. “It locks in permanent, pro-growth tax cuts for families, workers, and job creators. The bill also enacts No Tax on Tips, No Tax on Overtime, and new tax cuts for seniors.”

“As we saw after the passage of the 2017 Trump Tax Cuts, American businesses will hire, invest, and raise wages now that this Administration and the Republican Congress have delivered certainty and stability for the economy.”

Analysis from the Congressional Budget Office has suggested the bill would “increase deficits over the 2025-2034 period by $3.4 trillion” with its impact on US debt driving a wedge between Mr Trump and his former backer, Elon Musk.

US House Minority Leader Hakeem Jeffries, Democrat of New York talks to reporters as he leaves the House floor after speaking for 8 hours and 45 minutes. Picture: AFP

The world’s richest man earlier this week said he would support primary challenges to Republicans who supported the bill and that, if it was enacted, he would form a new political party called the America Party “so that the people actually have a voice.”

Overnight the bill has hanging in the balance. Mr Trump was frustrated after the procedural vote setting the rules for debating the Senate-amended bill in the House dragged on into the small hours of the morning.

The vote began at about 9:30pm on Wednesday and ended at about 3:20am on Thursday – making it the longest House vote in modern US history.

Five Republicans voted with the Democrats against the procedural “rule” vote, effectively blocking the bill’s advancement including Mr Massie, Mr Fitzpatrick as well as Keith Self from Texas, Victoria Spartz from Indiana and Andrew Clyde from Georgia. Several other Republicans refrained from voting, endangering its passage.

The “rule” vote was eventually passed by 219 to 213 after the US President dialled up the pressure by posting on his Truth Social platform and calling the holdouts directly.

“Largest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy. What are the Republicans waiting for??? What are you trying to prove??? MAGA IS NOT HAPPY, AND IT’S COSTING YOU VOTES!!!” Mr Trump said in one post.

In another, the US President declared that “FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!”

An electronic board shows the final tally of the US Congress' vote on US President Donald Trump's tax bill on the floor of the House of Representatives. Picture: AFP

US media carried reports that Mr Trump spoke directly to a range of Republicans including Mr Massie and Ms Spartz as well as Tim Burchett from Tennessee at about 1am in the morning.

After the impasse was broken and the procedural “rule” vote was passed, the House Minority Leader, Hakeem Jeffries, then broke the record for the longest House floor speech at eight hours and forty five minutes, exceeding the mark set in 2021 by Kevin McCarthy.

Using the “magic minute” rule, which allows House leaders to speak for unlimited time, Mr Jeffries started at 4:52am and wound up at 1:37pm to ensure a vote occurred during the middle of the day.

Before its passage, Mr Johnson said the bill would make America “stronger, safer and more prosperous than ever before and every American is going to benefit from that.” He said it was the “most important” vote of this Congress.

He likened it to the laying of a new cornerstone for the golden age of America and said Republicans were capitalising on having seized the White House, House and Senate at the last election.

“It is the people’s bill. It is made for and shaped by the most diverse coalition of Americans voters in American history,” he said.

Speaker Mike Johnson had struggled through the night to corral his rank-and-file Republican members after the package scraped past a series of ‘test’ votes in the House of Representatives that laid bare deep divisions in the party. Picture: Getty Images via AFP

Mr Johnson sketched out the key elements of the bill, leading with “record tax cuts for hard working Americans.”

“You’ve got hard working Americans like our waiters and our bell hops and our hairstylists. They’re going to keep one hundred per cent of their tips and overtime pay,” he said. “Small businesses that want to build and expand, new factories … they can write off one hundred per cent of their investment.”

“Young families who want to buy a home will be able to thanks to historic savings that will put our country on a stronger financial footing. Pregnant women, children, seniors, single mothers, the disabled and the low income Americans among us receiving Medicaid and SNAP will have the peace of mind of knowing that we have made these safety nets stronger with our reforms,” he said.

“We’re going to make sure that Americans who do need and deserve those critical programs don’t have to compete against people who can work but chose not to do so. That’s not right.”

“Our border will remain fully and totally secure,” he said. “Our immigration enforcement officers will get a boost form more manpower and resources and detention space so that detained illegal aliens are not released back into the streets.”