Despite clear threats against possible rebels, Trump managed to push through taxation improvement with just 1 voice. It was not a “great victory”, as the president of the United States dreamed. In fact, the bill was on the line to the end.
It wasn't the president of the United States who changed, but the look at him. Trump didn't lose power, he just lost his aura. In Washington, Wall Street, and Silicon Valley, fear continues, but it is no longer worshipped.
Reason? His presidency, which is economically motivated and implemented through fiscal measures, does not work. His opponents are numerous, powerful and influential.
The taxation simplification plans, adopted on Thursday 22 May by the home of Representatives by 215 votes to 214 after an almost endless debate, have inactive not been published in the bill. The bill, which aims to keep an earlier simplification in taxes worth 4.5 trillion dollars (16 trillion 878 billion PLN), will now go to the Senate.
Trump's complacency, which described the bill as "the most crucial part of government in the past of the country" sounded strangely empty. Republicans increasingly They look not at Trump, but at numbers — and are terrified. According to the legislature Budget Office, the same interest costs will be around $880 billion this year (3 trillion 301 billion) — almost twice the national budget of Germany.
Disappointing effect of duties
U.S. customs receipts in 2024 amounted to only 90 billion dollars (338 billion PLN). This year, due to customs duties, as of May 20, 50.3 billion dollars (PLN 189 billion) were achieved, 52.7 percent more than in the same period last year. But it's inactive a tiny amount.
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For comparison: the income taxation in 2024 brought you a full of 2.4 trillion dollars (more than PLN 9 trillion). This means that Trump's rhetoric that he intends to replace national taxes with border duties is unrealistic. Trump presently enjoys a dubious political reputation as a fraud, even in his own ranks.
Permanent opponent Jerome Powell
Threats and individual attacks To the president of the national Reserve, Jerome Powell's overconfidence was not good for Trump. His expansive fiscal policy requires inexpensive money, but that doesn't mean he'll get it. Powell was not obedient, but stubborn.
President of the national Reserve Jerome Powell at a press conference in Washington, D.C., on 7 May 2025.Andrew Harnik / POOL / AFP / AFP
President Fed is liable for maintaining a unchangeable value of money, not for the favour of the president of the United States, which Powell clearly made clear during the interest rate gathering on May 18.
We will always consider only economical data, prospects and hazard balance. That's all we'll consider.
“ He said.
Mood change on Wall Street
Jamie Dimon, president of 1 of the largest investment banks in the USA — JPMorgan pursuit takes all chance to Warn against the state of the American economy. Not further than on Thursday 22 May during Global China Summit Dimon admitted in an interview with Bloomberg: "I don't think we're in a favourable position.
Despite tensions between the US and China caused by Trump Dimon — with a hidden hint to the president of the United States — he stated that there is ready for long-term investment in China.
We gotta deal with the planet we have, not the planet we want we had.
“He assessed.
Disappointed technology billionaires
American technology companies are not satisfied with Trump's customs policy. It disrupts their activities. Jensen Huang, Nvidia's CEO, suffered primarily from strict rules on the export of high-performance chips to China.
The company's share of the Chinese marketplace fell from 95% at the beginning of the U.S. president Joe Biden's word of office to 50%. — In general, export control proved to be a failure, he concludes.
Investors quit US bonds
Unserious US financial management is not Trump's invention, but he led them to extremes. Between 2015 and 2020, the US debt limit had to be adjusted 7 times — through direct increases or temporary suspensions — to prevent insolvency.
Asset manager Dr. Jens Ehrhardt gives a devastating verdict:
American government bonds have no longer been included in the list of purchases of abroad investors. Russia and China have disposed of crucial portfolios. Russia completely and China almost half.
Trump's last taxation reform, which was adopted practically without funding, caused an alarm on the bond markets. The rates fell and the profitability (which the state must pay) increased. Thirty-year US Treasury bonds reached 5.15% on 22 May, the highest level in 10 years.
Conclusion? Debts, customs, and trade wars have caused moods to turn against Trump. In the business world, both in America and beyond, many present feel that it was not a happy accident but a mistake.
