House Republicans unveiled a comprehensive tax reform bill titled “THE ONE, BIG, BEAUTIFUL BILL,” reflecting many of former President Donald Trump’s campaign promises. The legislation aims to extend the 2017 tax cuts and introduce new tax relief measures, including exemptions for tipped income, overtime pay, Social Security benefits, and interest on auto loans.
Key provisions of the bill include:
- Tripling the state and local tax (SALT) deduction cap from $10,000 to $30,000 for couples, though some lawmakers from high-tax states argue this is still insufficient.
- A temporary deduction of up to $10,000 on interest for auto loans, applicable only to vehicles assembled in the United States.
- A $4,000 deduction on Social Security wages for seniors with adjusted incomes up to $75,000 for individuals and $150,000 for couples.
- Increases to the standard deduction and child tax credit, with the latter rising from $2,000 to $2,500 for four years.
To offset the projected $4.9 trillion cost over the next decade, the bill proposes significant spending cuts, including reductions to Medicaid, food assistance programs like SNAP, and green energy initiatives. These measures have sparked debate within the Republican Party, with some members expressing concern over the potential impact on vulnerable populations.
The legislation also introduces a new tax on private university endowments and seeks to eliminate tax-exempt status for organizations identified by the State Department as supporting terrorism, a move that has raised concerns among civil society advocates.
As the House aims to pass the bill before Memorial Day, internal disagreements among Republicans pose challenges to its advancement. The bill’s fate in the Senate remains uncertain, with further negotiations and potential amendments anticipated.
