President Donald Trump on Friday signed a bill that will add more than $1 billion to his proposed $1,094 billion fiscal cliff tax cut and raise the debt ceiling by $600 billion, but it still leaves some questions about the plan.
The House approved the bill on a 231-212 vote with all Democrats joining the majority.
The Senate is expected to pass the bill next week, though it’s unclear how much it will add.
The measure is also likely to face a major test in the Senate, where Republicans are trying to hold onto their majority and avoid a government shutdown.
The tax bill will increase the top rate from 35 percent to 39.6 percent and add an additional $1 million in corporate tax cuts.
That increase is projected to raise $1-trillion a year in additional revenue and $700 billion over 10 years, according to a Treasury Department analysis.
But that’s not enough to make up for the $1 Trillion in cuts in spending, which will also require raising taxes on some middle-class households.
The legislation also includes $1 trillion in economic growth measures, including tax credits for businesses and individuals to help pay for education and job training.
It also includes an extension of unemployment benefits, which have been at an annual cap since the fiscal cliff.
Trump said the tax cut would “reinvest in the middle class.”
It will also “rein in our military,” he said.
The bill also includes a $100 billion increase in the Social Security trust fund, which is funded through payroll taxes and taxes on the earnings of retirement income.
The White House did not immediately return a request for comment.
The new $1trillion in tax revenue is expected next year, when the tax cuts are scheduled to expire.
The revenue comes after years of debate over the president’s plan to reduce the national debt.
The president has said the bill is a way to fund his spending priorities, including a $6 trillion infrastructure bill and an expansion of the military.
But Republicans have long warned that the legislation will leave the nation in the red if the cuts aren’t made.
The $1Trillion in spending cuts would increase the debt by $1 for every $1 of tax cuts the country receives, according the Treasury Department.
It would raise $200 billion in interest costs, according a Treasury estimate.
The GOP-controlled House and Senate have passed the bills in past weeks, and the White House said on Friday that it expects the Senate to pass it on its own.
It said that the Senate plan “would raise revenues that are lower than the President’s initial plan for the 2018 fiscal year, and more than offset the revenue increase that the President has made available.”
Trump said on Twitter that the $600bn debt ceiling would be raised “with a single stroke” but didn’t provide any specifics.
It is unclear how the deal would affect his tax plan, which calls for a 2 percent rate on income above $450,000 and a 0.9 percent rate for the middle-income brackets.
The administration said Friday that the bill would allow tax rates to rise to “the highest levels in history,” but it did not say how high.