Trump: "Tax Cut Bill Is a Phenomenal Victory... No Better Gift for America"

Tax Cut Bill Passed to Mark US Independence Day
Trump Celebrates at Kickoff Event for 250th Anniversary
Fiscal Concerns Remain: "$3.3 Trillion Over 10 Years"

US President Donald Trump is entering the 'Salute to America' event, a kickoff celebration for the 250th anniversary of American independence, applauding on the 3rd (local time). Photo by AFP Yonhap News

US President Donald Trump described the final passage of his signature legislative agenda, the 'One Big Beautiful Bill Act,' by the US Congress on the 3rd (local time) as a "phenomenal victory." The successful enactment of this large-scale tax cut bill, which contains the main agenda of Trump's second administration, is expected to further energize his governance.

In a speech at the kickoff celebration for the 250th anniversary of American independence held in Des Moines, Iowa, President Trump said, "Just a few hours ago, Congress passed this bill to make America great again. There could be no better birthday present for America than this phenomenal victory we have achieved."

He stated that the bill includes "the largest tax cuts in American history, the largest (federal government) spending reductions, and the largest investment in border security." President Trump went on to tout policies implemented since the start of his second term, such as blocking illegal immigration at the border, modernizing the military, and striking Iranian nuclear facilities. He described these as "a declaration of independence from national decline, independence from excessive taxation, and independence from the radical left and bureaucracy."

He also said, "Not a single Democratic lawmaker supported us on anything we did, including tax cuts and rebuilding the military. I think we will leverage this in next year's midterm elections." He added, "Despite everything we have given, they didn't vote for it because they hate Trump. I hate them too." This was seen as a rebuttal to Democrats' criticism that the bill is a tax cut for the wealthy and could significantly reduce healthcare benefits for ordinary citizens, such as Medicaid.

Although the 250th anniversary of American independence is next year, President Trump promised to hold various celebrations over the coming year to commemorate America's founding, starting with this event. Notably, he announced plans to host a UFC mixed martial arts event at the White House as part of next year's celebrations.

The choice of Iowa as the kickoff location for the 250th anniversary celebrations was due to its central location in the continental US and the fact that President Trump won the state in all three presidential elections he has run in. Additionally, considering that agriculture is Iowa's main industry, President Trump announced that farm and hotel owners would not be subject to illegal immigration crackdowns if they personally guarantee responsibility.

The US House of Representatives held a plenary session that day and passed the tax cut package bill, which had previously cleared the Senate. By enacting this large-scale tax cut bill containing his core policy agenda, President Trump has not only secured a political victory but also further strengthened his administrative momentum. In fact, before heading to Iowa, President Trump responded to reporters' questions by saying, "I believe I currently hold the strongest power," and boasted, "Trump's first term was a huge success, and this term will be much better than that."

However, concerns have been raised that the bill is expected to increase the fiscal deficit by $3.3 trillion (about 4,500 trillion won) over the next 10 years, which could have significant repercussions for financial markets. The Congressional Budget Office (CBO) projected that the bill would increase the fiscal deficit by $3.3 trillion by 2034. This is because the scale of the tax cuts reaches $4.5 trillion, while government spending reductions amount to only $1.2 trillion. As the fiscal deficit expands, the issuance of US Treasury bonds is expected to increase, leading some analysts to warn of significant shocks to financial markets, such as a sharp rise in Treasury yields.