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A fiscal fight is brewing in the court of Donald Trump

America’s debt pile and the case for tax cuts will be flashpoints inside the new administration

It is groundhog day in Washington. In recent years, brinkmanship has repeatedly erupted whenever Congress has tried to raise the debt ceiling — usually because rightwing voices have threatened a government shutdown unless their demands were met.

Here we go again. This week Mike Johnson, the Republican Speaker of the House of Representatives, tried to pass a stop-gap debt ceiling deal with a $6.75tn budget — but it was derailed by incoming president Donald Trump and his supporters, including Elon Musk and Vivek Ramaswamy.

“This bill should not pass,” Musk furiously declared on X, sparking last-ditch negotiations, amid threats of government shutdowns.

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