The U.S. Senate passed a budget resolution supporting President Donald Trump's tax cut policy.
According to Bloomberg News on the 5th (local time), the Senate approved the budget resolution, which centers on large-scale tax cuts and raising the government debt ceiling, by a vote of 51 to 48 in the early morning.
The Republican Party holds 53 seats in the Senate, but party dissidents Rand Paul (Kentucky) and Susan Collins (Maine) voted against it.
Discussions on the resolution in the House of Representatives are scheduled to begin next week.
According to the resolution, Congress is granted the authority to extend the $4 trillion (approximately 5,846 trillion won) tax cut measures introduced during President Trump's first term in 2017. These tax cuts were set to expire at the end of this year.
The Republican Party argues that extending the tax cuts is an essential measure to reduce the tax burden on households. Additionally, the Senate allowed for an additional $1.5 trillion (approximately 2,192 trillion won) in tax cuts over the next 10 years.
Along with this, the resolution includes raising the federal government's debt ceiling, expected to reach its limit this summer, to $5 trillion (approximately 7,307 trillion won).
The Republican Party views the resolution passed on this day as the Trump administration's second economic agenda item following tariffs.
The Trump administration believes that the new tax cuts will revive the market and encourage corporate investment.
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