Senate Finance unveils committee's portion of GOP megabill
Senate Finance Chair Mike Crapo on Monday unveiled changes to how the GOP's 'big, beautiful bill' would execute a major tax revamp and Medicaid cuts — two of the thorniest policy fights in the sweeping legislation.
The release comes after closed-door negotiations between Crapo and his colleagues over how to revise the version of the megabill the House passed last month.
Crapo's plan would create more limited tax breaks for tips and overtime demanded by President Donald Trump. It also holds the cap on the state and local tax deduction to the current $10,000, far less than the House's $40,000, though the Senate number is widely considered a placeholder.
In the much-anticipated legislation, the Idaho Republican is also proposing to scale back a planned hike in a 1.4 percent tax on university endowment earnings. Under his plan, it would max out at 8 percent, compared to the 21 percent the House has proposed. He also wants a smaller increase in the Child Tax Credit than what his House colleagues have proposed, increasing it to $2,200 per child rather than $2,500, while making a trio of popular business breaks permanent.
Elsewhere in the plan, Crapo would create a more generous $2,000 deduction for couples who give to charity but don't itemize their deductions. They'd get $300 under the House plan.
Senate Republicans are under pressure to make minimal changes, given their thin hold on the lower chamber.
But that could be difficult for some senators eager to put their own imprint on the legislation and who have long viewed House tax bills as little more than first drafts in need of heavy editing.
Senate Republicans aim to quickly bring the plan to the chamber floor, with an eye toward getting it to Trump's desk by their July 4 recess, though some have warned that deadline could slip.
'I look forward to continued coordination with our colleagues in the House and the Administration to deliver President Trump's bold economic agenda for the American people as quickly as possible,' Crapo said in a statement.
It was not immediately clear whether Crapo's plan sticks to the overall $4 trillion tax-cutting budget House Republicans set for themselves. If Senate Republicans exceed it, that could also be a big problem for deficit hawks across the Capitol, who have been adamant that lawmakers can spend no more than $4 trillion unless they simultaneously come up with at least $1.5 trillion in spending reductions.
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