The Senate narrowly approved President Trump’s tax bill Tuesday after Vice President JD Vance cast a tie-breaking vote following no votes from three Republican senators.
The bill would extend tax breaks from the Tax Cuts and Jobs Act and add new tax breaks for tips, overtime pay and car purchases in the U.S. It will now need to go back to the House for another vote after it won passage there in May.
“With this bill’s passage, the United States Senate is fulfilling President Trump’s promise to secure the border, fortify our national defense and unleash American energy,” said Senate Finance Committee chairman Mike Crapo, R-Idaho, in a statement Tuesday. “This legislation also prevents the biggest tax hike in U.S. history from ever happening, delivers additional tax relief to hardworking families and takes significant steps to get our fiscal house in order. Making the successful 2017 Trump tax cuts permanent ensures Americans keep more of their hard-earned money, and gives businesses the certainty they need to make the long-term investments that power economic growth. New tax relief from policies like no taxes on tips, no taxes on overtime, tax relief for seniors and additional child care assistance will overwhelmingly benefit the working class.”
Senate Democrats fought against passage of the bill in an overnight Vote-a-Rama and were able to win a last minute change in the name so it won’t be called the One Big Beautiful Bill Act, at least officially, although a similar objection occurred in 2017 with the Tax Cuts and Jobs Act. They expressed their opposition to the cuts in Medicaid and the Supplemental Nutrition Assistance Program, as well as the skewed tax cuts to high-income taxpayers and the $3.3 trillion cost.
“This Republican bill is about caviar over kids, hedge funds over health care, and Mar-a-Lago over the middle class,” said Sen. Ron Wyden, D-Oregon, in a statement. “If this becomes law, only the ultra-wealthy will make it through unscathed. Every other American will be hurt in one way or another, whether it’s cancer patients losing their health coverage, kids going hungry or families being forced to pay higher utility bills and insurance premiums.”
President Trump hailed passage of the mammoth bill, saying, “It’s a great bill. There is something for everyone.”
However, Senate Minority Leader Chuck Schumer, D-New York, warned the vote would come to haunt Republicans.
“As the American people see the damage that is done, as hospitals close, as people are laid off, as costs go up, as the debt increases, they will see what our colleagues have done, and they will remember it,” he said. “And we Democrats will make sure they remember it.”
Among the provisions are:
- No tax on tips for millions of tipped workers;
- No tax on overtime for millions of hourly workers;
- No tax on auto loan interest for new cars made in the U.S.;
- Repeals the lowered 1099-K IRS reporting requirements on gig workers;
- Increases the 1099-MISC threshold;
- Strengthens employer-provided childcare credit and boosts childcare assistance.
- Creates school choice tax credits;
- Provides a $6,000 bonus exemption to millions of low- and middle-income seniors;
- Enhances 529 savings accounts;
- Establishes savings accounts for children, from newborns up to age 18;
- Full expensing for domestic R&D to encourage domestic innovation;
- Full expensing for new capital investments, like machinery and equipment, to boost domestic production;
- Restores interest deductibility to a globally competitive standard;
- Permanently renews and enhances the Opportunity Zone program; and,
- Removes tax credits for wind and solar projects and electric vehicles.
Credit: Source link
