Trump advocates for enactment of substantial tax reform by the Fourth of July, while senators take a more resistant stance.
LET'S GET IT DONE - That's what President Trump has been saying about his massive tax and spending overhaul, and he wants Congress to get started ASAP. Here's what's happening:
The Senate GOP is considering significant changes to the president's bill, which has been dubbed the "One Big Beautiful Bill." Here are the main areas under review:
Key Adjustments on the Table
- Revising the State and Local Tax (SALT) Deduction Cap:
- The House proposed raising the SALT cap to $40,000 for lower-earning taxpayers in high-tax states, but some Senate Republicans argue that this favorably impacts wealthier residents. They might suggest adjusting the cap or imposing stricter limitations.[2][3]
- Expanding the Child Tax Credit:
- Currently, the House bill raises the Child Tax Credit to $2,500 for a limited time, and then it reverts to $2,000. However, some Republicans, like Sens. Hawley and Vance, advocate for increasing the credit to $5,000 per child and making it permanent for all payroll taxpayers.[3]
- Addressing Other Tax Changes:
- The bill aims to permanentize the 2017 tax cuts and cut other taxes, such as those affecting tips and overtimepay for certain workers.[1] It also proposed removing federal excise taxes on items like gun silencers and tanning services.[1]
Pushing Back on Deficit Worries:
- The bill is expected to add $2.4 trillion to the deficit, causing concern among fiscal hawks.[1]
Overall, Senate Republicans are carefully reviewing these provisions, considering adjustments that align with their budget priorities and perceptions of fairness. Stay tuned for updates on this development!
Sources:[1] Associated Press[2] Politico[3] The Hill
Additional Reads:
Senate GOP Plans to Fine-Tune Trump's Massive Tax Overhaul
Goodbye, Mister President: Musk Bids Adieu to Trump Administration amid Friction over 'Big, Beautiful Bill'
Documenting Resistance: Senate Dems Prepare Moves to Block 'Abomination' Trump Spending Bill
[The original article can be found at: https://www.yahoo.com/news/senate-republicans-face-hurdles-moving-trump-170027672.html]
- In the face of President Trump's urging for swift action on his tax and spending overhaul, known as the "One Big Beautiful Bill," the Senate GOP is reviewing key adjustments that could significantly impact the final bill.
- One contentious issue under discussion is the revision of the State and Local Tax (SALT) Deduction Cap, with Senate Republicans debating whether to lower the cap or impose stricter limitations to ensure fairness.
- Another proposal on the table is the expansion of the Child Tax Credit, with some Republicans advocating for increasing it to $5,000 per child and making it permanent for all payroll taxpayers.
- The bill also addresses other tax changes, aiming to permanentize the 2017 tax cuts and cut taxes for workers affected by tips and overtime pay, while also proposing the removal of federal excise taxes on items such as gun silencers and tanning services.
- Despite concerns about the bill potentially adding $2.4 trillion to the deficit, Senate Republicans are carefully reviewing these provisions, focusing on aligning them with their budget priorities.
- As the Senate GOP fine-tunes President Trump's massive tax overhaul, general news, policy and legislation, business, health, USC education, California, war and conflicts, and broader politics remain captivated by this developing story.
