Latest news with #TrumpTaxPlan
The Guardian
7 days ago
- Business
- The Guardian
Republican Iowa congresswoman booed at town hall over Trump policies
Constituents booed Republican congresswoman Ashley Hinson at a town hall in her Iowa district Wednesday when she praised Donald Trump's tax-and-spending plan and spoke approvingly of the 'department of government efficiency's' (Doge) efforts to downsize the federal government. It was the latest instance of a Republican lawmaker being taken to task at a public event over their support for Trump's policies, and came days after Hinson had voted for the the One Big Beautiful bill when it passed the House of Representatives. The wide-ranging bill will extend tax cuts enacted during Trump's first term, create new deductions for tips, overtime and car loan interest and fund mass deportations, while slashing federal social safety net programs. Hinson drew a chorus of boos when she told the audience in the town of Decorah that she was 'proud' to have voted for the bill. 'This is your time,' she said over the din. A similar outburst occurred from the audience at mention of Doge, which Hinson said she had received positive feedback about during an event elsewhere. The crowd broke into cheers when a constituent who identified himself as Steve Peterson referred to Trump's acceptance of a jet from Qatar and promotion of his own memecoin and asked Hinson: 'Could you help me understand why you are silent about this corruption?' 'I think it's really unfair to imply that I like to see corruption in Washington DC. I reject that premise wholeheartedly. I am here answering your questions in public because I care about transparency,' replied Hinson, who added that the jet was acquired from Qatar 'ethically'. First elected in 2020, Hinson's north-east Iowa district leans towards the GOP, but has been represented by Democrats in the past. At least one attendee at her town hall identified herself as a Democrat, and the county party noted that Hinson would be holding events in the district on Wednesday. Similar scenes have played out at town halls held by Republican lawmakers in Iowa and elsewhere. The state's long-serving senator Chuck Grassley was grilled last month by constituents over his support for Trump's hardline immigration policies, while in Georgia, police used a stun gun on two people during a town hall held by Marjorie Taylor Greene, a fervent Trump supporter. Democrats hope the public discontent is a sign that voters are ready to sweep them back into the majority in the House next year, and the chairman of the National Republican Congressional Committee, which coordinates House campaigns, reportedly advised lawmakers to stop holding town halls. Hinson was not alone in facing questions over her support for Trump's Big Beautiful bill, which passed the House narrowly and awaits consideration by Senate Republicans. On Tuesday, Mike Flood, a Republican congressman, faced a raucous crowd at his town hall in Seward, Nebraska, and admitted he was not aware that the bill contained language that could prevent federal judges from enforcing injunctions or restraining orders, several of which have been issued against Trump administration policies. 'I am not going to hide the truth. This provision was unknown to me when I voted for that bill,' said Flood, who added he had expressed his disapproval to senators.
The Guardian
22-05-2025
- Business
- The Guardian
Tax cuts and mass deportations: what to know about Trump's ‘big, beautiful' spending bill
The Republican-controlled House of Representatives on Thursday passed the One Big Beautiful Bill act, which will enact Donald Trump's taxation and spending priorities. The legislation will now be considered in the Senate, where the Republican majority will probably make its own changes. Here is what the version of the bill passed by the House would do: After taking office in 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers, and generally benefited high earners more than most. Those provisions are set to expire after this year, but the Big Beautiful Bill makes them permanent, while increasing the standard deduction by $1,000 for individuals, $1,500 for heads of households and $2,000 for married couples, albeit only through 2028. The bill creates many new tax exemptions, several of which stem from promises Trump made while campaigning last year. Taxpayers will be able to write off income from tips and overtime, and interest made on loans for cars assembled in the United States. People aged 65 and over are eligible for an additional deduction of $4,000, provided their adjusted gross income does not exceed $75,000 for single filers or $150,000 for married couples. But all of these incentives expire at the end of 2028, right before Trump's term as president ends. In addition to paying federal taxes, residents of many states must also pay state and local taxes (Salt). Prior to 2017, they could deduct these payments on their federal returns, but the tax law Trump signed that year capped these deductions at $10,000, an amount taxpayers in states with high Salt burdens such as New York, New Jersey and California often exceed. House Republicans who represent districts in those states spent weeks demanding the Big Beautiful Bill increase that limit, and succeeded: the bill passed by the House raises the deduction to $40,000 per year. As part of Trump's plan to remove undocumented immigrants from the country, Immigration and Customs Enforcement (Ice) will receive $45bn for detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029. More than $50bn is allocated for the construction of new border fortifications, which will probably include a wall along the border with Mexico. And immigrants hoping to claim asylum or otherwise seek relief through immigration courts will face a host of new fees that advocates say may keep them out of the country altogether. All these tax breaks and other spending come with a major cost. Congress's non-partisan fiscal scorekeeper, the Congressional Budget Office (CBO), estimates the bill's tax policies alone will add nearly $3.8tn to the federal deficit. Trump's supporters routinely attack judges who rule against him, and the bill includes a provision that prohibits federal courts from enforcing contempt citations related to temporary restraining orders or preliminary injunctions. At least one federal judge appears ready to issue such a citation in a high-profile immigration case involving the administration. Erwin Chemerinsky, the dean of the University of California, Berkeley's school of law, wrote that judges could get around the provision for future cases, but hundreds of existing court orders covering all sorts of subjects – including the many lawsuits against Trump's policies – would become unenforceable. Republicans have attempted to cut down on the bill's cost by slashing two major federal safety net programs: Medicaid, which provide healthcare to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap), which helps people afford groceries. Both are in for funding cuts in the bill, as well as new work requirements. The Urban Institute thinktank, based on an analysis of a similar policy, believes these could remove as many as 5.2 million people from Medicaid, while the left-leaning Center on Budget and Policy Priorities forecasts about a quarter of Snap recipients could leave the program, or nearly 11 million people. Wealthier taxpayers appear set to receive more benefits from this bill than poorer ones. Taxpayers with the highest incomes will see their household resources increase by 4% in 2027 and 2% in 2033, largely due to the extended tax cuts, the CBO estimated earlier this week. The poorest tax payers would see their resources drop by 4% in 2033, largely due to the downsized benefit programs, according to the office. The bill will phase out tax incentives created by Congress during Joe Biden's presidency meant to encourage consumers and businesses to use electric cars and other clean energy technology. Credits for cleaner cars will end this year and incentives for wind and solar energy will only be available for projects that begin construction 60 days after the bill's enactment and enter service by 2028. Clean energy manufacturing tax credits will be axed by 2031, while Americans seeking to upgrade their homes to cleaner or more energy efficient appliances will get no further subsidy after the end of this year. The US government's authority to borrow, known as the debt limit, will increase by $4tn. Earlier this month, the US treasury secretary, Scott Bessent, predicted the government would hit the limit by August, at which point it could default on its debt and spark a financial crisis.
Fast Company
21-05-2025
- Business
- Fast Company
Divided House GOP head to the White House to save Trump's big bill
With President Donald Trump's multitrillion-dollar tax breaks package at risk of stalling, House Speaker Mike Johnson and conservative Republican holdouts are heading Wednesday to the White House for the last-ditch talks to salvage the 'big, beautiful bill.' Johnson, R-La., had hoped to vote as soon as Wednesday on the 1,000-page plus bill after grinding through an all-night committee hearing, a final step in the process. But debate dragged into midday. Democrats, without the votes to stop Trump's package, are using all available tools to press their opposition and capitalize on the GOP disarray. 'We believe it's one big, ugly bill that's going to hurt the American people,' said House Democratic leader Hakeem Jeffries of New York as he and his team testified before the committee. 'Hurt children, hurt families, hurt veterans, hurt seniors, cut health care, cut nutritional assistance, explode the debt,' he said. Trump had instructed the Republican majority to quit arguing and get it done, putting his own political influence on the line. But the Republican president failed to move many skeptics during his Capitol Hill visit this week and GOP leaders struggled through the the night on crafting last-minute deals. But for every faction of the slim House majority that Johnson appeases, he is losing others. A tentative deal with GOP lawmakers from New York and other high-tax states to boost deductions for local taxes to $40,000 alarmed the most conservative Republicans, worried it will add to the nation's $36 trillion debt. Rep. Andy Harris, R-Md., the chairman of the hard-right House Freedom Caucus, said he did not believe the package could pass in a House vote, but 'there is a pathway forward that we can see.' 'We want to deliver the president's agenda,' he said. It's a make-or-break moment for the president and his party in Congress. They have invested much of their political capital during the crucial first few months of Trump's return to the White House on this legislation. If the House Republicans fall in line with the president, overcoming unified Democratic objections, the measure would next go to the Senate. 'We're doing very well. It's very close' Trump said at the White House. A fresh analysis from the Congressional Budget Office said the tax provisions would increase federal deficits by $3.8 trillion over the decade, while the changes to Medicaid, food stamps and other services would tally $1 trillion in reduced spending. The lowest-income households in the U.S. would see their resources drop, while the highest ones would see a boost, the CBO said. Republicans convened the House Rules Committee hearing shortly after midnight, but Johnson's Memorial Day deadline for House passage was slipping as lawmakers prepared to depart for the holiday. At its core, the package is centered on extending the tax breaks approved during Trump's first term in 2017, while adding new ones he campaigned on during his 2024 campaign. To make up for some of the lost revenue, the Republicans are focused on spending cuts to federal safety net programs and a massive rollback of green energy tax breaks from the Biden-era Inflation Reduction Act. Golden Dome' defense shield, and the rest for Trump's mass deportation and border security agenda. The package title carries Trump's own words, the ' One Big Beautiful Bill Act.' As Trump promised voters on the tax front, the package proposes there would be no taxes on tips for certain workers, including those in some service industries; automobile loan interest; or some overtime pay. There would be an increase to the standard income tax deduction, to $32,000 for joint filers, and a boost to the child tax credit to $2,500. There would be an enhanced deduction, of $4,000, for older adults of certain income levels, to help defray taxes on Social Security income. To cut spending, the package would impose new work requirements for many people who receive health care through Medicaid. Able-bodied adults without dependents would need to fulfill 80 hours a month on a job or in other community activities. Similarly, those who receive food stamps through the Supplemental Nutritional Assistance Program, known as SNAP, would also face new work requirements. Older Americans up to age 64, rather than 54, who are able-bodied and without dependents would need to work or engage in the community programs for 80 hours a month. Additionally, some parents of children older than 7 years old would need to fulfill the work requirements; under current law, the requirement comes after children are 18. Republicans said they want to root out waste, fraud and abuse in the federal programs. The Congressional Budget Office has estimated 8.6 million fewer people would have health insurance with the various changes to Medicaid and the Affordable Care Act. It also said 3 million fewer people each month would have SNAP benefits. Conservatives are insisting on quicker, steeper cuts to federal programs to offset the costs of the trillions of dollars in lost tax revenue. GOP leaders have sped up the start date of the Medicaid work requirements from 2029 to 2027. At the same time, more moderate and centrist lawmakers are wary of the changes to Medicaid that could result in lost health care for their constituents. Others are worried the phaseout of the renewable energy tax breaks will impede businesses using them to invest in green energy projects in many states. Plus, those lawmakers from New York, California and other high-tax states want a bigger state and local tax deduction, called SALT, for their voters back home. As it stands, the bill would triple what's currently a $10,000 cap on the state and local tax deduction, increasing it to $30,000 for joint filers with incomes up to $400,000 a year. But advocates wanted more. Under the emerging deal, the cap would increase the deduction to $40,000 with an income limit of $500,000, according to a person granted anonymity to discuss the private talks. The cap would phase down for incomes above that level. The Committee for a Responsible Federal Budget, a nonpartisan fiscal watchdog group, estimates that the House bill is shaping up to add roughly $3.3 trillion to the debt over the next decade.
CNN
13-05-2025
- Business
- CNN
Johnson attempts to hold together fragile GOP coalition ahead of key committee votes on Trump agenda
House Republicans are heading into a blockbuster week for President Donald Trump's 'one big, beautiful bill,' as Speaker Mike Johnson attempts to stave off a revolt from any one faction of his conference that could tank the sweeping GOP agenda. House lawmakers will return to Washington on Tuesday to kick off a series of high-stakes committee votes, key hurdles that Republicans must clear for Johnson to pass Trump's tax and spending cuts package by Memorial Day, as planned. A slate of committees must vote to advance pieces of the legislation before it can be assembled into one bill. But there are already warning signs as Johnson and his leadership team are facing friction from both moderates and hardliners. With a slim majority, the speaker will need almost complete unity in his conference to advance the bill – and many Republicans expect Trump will need to weigh in to deliver the votes. The committee markups will be the first opportunity for public debate from lawmakers on Capitol Hill since GOP leadership revealed key details of Trump's plan on contentious issues like cuts to Medicaid and food stamps, as well as a dense tax package. It'll also be the first time GOP lawmakers can huddle privately in Washington to plot their next steps. At least two conservative hardliners, Reps. Chip Roy of Texas and Thomas Massie of Kentucky, have been publicly critical about what they see as inadequate changes to Medicaid, among other issues. 'I remain open-minded because progress has been made based on our forceful efforts to force change. But we cannot continue down the path we've been going down - and we will need SIGNIFICANT additional changes to garner my support,' Roy posted on X as part of a long list of complaints about the bill. Then there's the so-called SALT Caucus — a loose coalition of roughly a half-dozen Republicans from high-tax states like New York, New Jersey and California who have sought to repeal the 2017 deduction cap on state and local taxes. GOP tax-writers proposed to triple the current cap on state and local taxes, from $10,000 to $30,000 per year, but it is limited to people who are making $400,000 or less. That $30,000 cap, however, has been a nonstarter for those members. 'Oh, hell no, no. We're here to fight for a much higher cap on the state and local tax,' Rep. Nick LaLota of New York told CNN last Thursday, when the tax committee was first discussing a $30,000 cap. LaLota posted on X after the text was unveiled Monday, reiterating that he remains a 'hell no.' GOP Rep. Mike Lawler also said he cannot back the sweeping bill to implement Trump's agenda until more favorable terms over the key tax break are negotiated in the proposal. 'As I have said repeatedly, I will not support any bill that does not adequately lift the cap on SALT,' Lawler told CNN on Monday. 'This bill as written fails to deliver and will not have my support. I look forward to continuing to negotiate with leadership and the administration to provide real tax relief for my constituents.' Further complicating matters: One of the GOP lawmakers who has stridently opposed the $30,000 cap is Rep. Elise Stefanik – a member of Johnson's leadership team. Three key committees, including the tax-writing Ways and Means Committee, will hold votes midweek to advance their own slices of Trump's big domestic package. That will be followed by another big vote by the end of the week from the fiscally conservative House Budget Committee. A full floor vote in the House could follow as soon as next week. Democrats, meanwhile, are preparing for marathon committee meetings, particularly on the Energy and Commerce and Ways and Means panels on Tuesday. As Republicans have unveiled details of their plans, Democrats have continued to hammer the claim that millions could lose health coverage under the GOP's plan because of changes to Medicaid. Republicans, however, dispute the Democrats' calculations because the congressional nonpartisan scorekeeper hasn't yet weighed in on their specific plan, which was just unveiled late Sunday. Republicans have outlined big changes to Medicaid, such as work requirements for people who are physically 'capable' of working, and new $35 co-pays for those enrolled in the program. There's also a new restriction on state matching funds for states that allow undocumented immigrants to enroll in state health programs. Still, the plans revealed by the House Energy and Commerce Committee late Sunday night did not include two of the biggest potential changes to Medicaid that Republicans were weighing — big cuts to the federal match rates for Medicaid or a push to turn federal dollars into effectively a block grant, in a policy that's known as a 'per capita cap.' Many of the House GOP's more moderate members were elated by the committee's Medicaid plan — which they believe represented a big win over their hardliner counterparts. Energy and Commerce Chairman Brett Guthrie has told members that he believes his plan will reach the target of $880 billion in savings that Republicans called for in their budget resolution, and the congressional budget office confirmed it would in a letter Monday. But he has not yet said exactly how, because the panel is still awaiting key documents from the Congressional Budget Office that will help determine the bill's overall price tag. As of Monday night, many Republicans were still digging into the details of the nearly 400-page tax bill. That plan includes some of Trump's big campaign promises, including scrapping federal taxes on tips, on overtime pay and on car loan interest. It's a big win for Trump, as is the name of the bill — 'The One, Big, Beautiful Bill,' adopting the president's moniker for the legislation. As expected, it also includes Trump's demand for a debt limit hike, which would cost a total of $4 trillion to punt the problem for another few years. Congress needs to raise the debt limit before its August recess to prevent default and Trump hopes to do so using this bill, rather than strike a deal with Democrats. The bill includes dozens of tax extensions from Trump's 2017 tax bill. There's also one relatively new idea – a so-called 'MAGA' savings account for kids under 18 years old. It's short for 'money account for growth and advancement,' which would create a new, flexible type of tax-free savings account for kids.
CNN
13-05-2025
- Business
- CNN
Johnson attempts to hold together fragile GOP coalition ahead of key committee votes on Trump agenda
House Republicans are heading into a blockbuster week for President Donald Trump's 'one big, beautiful bill,' as Speaker Mike Johnson attempts to stave off a revolt from any one faction of his conference that could tank the sweeping GOP agenda. House lawmakers will return to Washington on Tuesday to kick off a series of high-stakes committee votes, key hurdles that Republicans must clear for Johnson to pass Trump's tax and spending cuts package by Memorial Day, as planned. A slate of committees must vote to advance pieces of the legislation before it can be assembled into one bill. But there are already warning signs as Johnson and his leadership team are facing friction from both moderates and hardliners. With a slim majority, the speaker will need almost complete unity in his conference to advance the bill – and many Republicans expect Trump will need to weigh in to deliver the votes. The committee markups will be the first opportunity for public debate from lawmakers on Capitol Hill since GOP leadership revealed key details of Trump's plan on contentious issues like cuts to Medicaid and food stamps, as well as a dense tax package. It'll also be the first time GOP lawmakers can huddle privately in Washington to plot their next steps. At least two conservative hardliners, Reps. Chip Roy of Texas and Thomas Massie of Kentucky, have been publicly critical about what they see as inadequate changes to Medicaid, among other issues. 'I remain open-minded because progress has been made based on our forceful efforts to force change. But we cannot continue down the path we've been going down - and we will need SIGNIFICANT additional changes to garner my support,' Roy posted on X as part of a long list of complaints about the bill. Then there's the so-called SALT Caucus — a loose coalition of roughly a half-dozen Republicans from high-tax states like New York, New Jersey and California who have sought to repeal the 2017 deduction cap on state and local taxes. GOP tax-writers proposed to triple the current cap on state and local taxes, from $10,000 to $30,000 per year, but it is limited to people who are making $400,000 or less. That $30,000 cap, however, has been a nonstarter for those members. 'Oh, hell no, no. We're here to fight for a much higher cap on the state and local tax,' Rep. Nick LaLota of New York told CNN last Thursday, when the tax committee was first discussing a $30,000 cap. LaLota posted on X after the text was unveiled Monday, reiterating that he remains a 'hell no.' GOP Rep. Mike Lawler also said he cannot back the sweeping bill to implement Trump's agenda until more favorable terms over the key tax break are negotiated in the proposal. 'As I have said repeatedly, I will not support any bill that does not adequately lift the cap on SALT,' Lawler told CNN on Monday. 'This bill as written fails to deliver and will not have my support. I look forward to continuing to negotiate with leadership and the administration to provide real tax relief for my constituents.' Further complicating matters: One of the GOP lawmakers who has stridently opposed the $30,000 cap is Rep. Elise Stefanik – a member of Johnson's leadership team. Three key committees, including the tax-writing Ways and Means Committee, will hold votes midweek to advance their own slices of Trump's big domestic package. That will be followed by another big vote by the end of the week from the fiscally conservative House Budget Committee. A full floor vote in the House could follow as soon as next week. Democrats, meanwhile, are preparing for marathon committee meetings, particularly on the Energy and Commerce and Ways and Means panels on Tuesday. As Republicans have unveiled details of their plans, Democrats have continued to hammer the claim that millions could lose health coverage under the GOP's plan because of changes to Medicaid. Republicans, however, dispute the Democrats' calculations because the congressional nonpartisan scorekeeper hasn't yet weighed in on their specific plan, which was just unveiled late Sunday. Republicans have outlined big changes to Medicaid, such as work requirements for people who are physically 'capable' of working, and new $35 co-pays for those enrolled in the program. There's also a new restriction on state matching funds for states that allow undocumented immigrants to enroll in state health programs. Still, the plans revealed by the House Energy and Commerce Committee late Sunday night did not include two of the biggest potential changes to Medicaid that Republicans were weighing — big cuts to the federal match rates for Medicaid or a push to turn federal dollars into effectively a block grant, in a policy that's known as a 'per capita cap.' Many of the House GOP's more moderate members were elated by the committee's Medicaid plan — which they believe represented a big win over their hardliner counterparts. Energy and Commerce Chairman Brett Guthrie has told members that he believes his plan will reach the target of $880 billion in savings that Republicans called for in their budget resolution, and the congressional budget office confirmed it would in a letter Monday. But he has not yet said exactly how, because the panel is still awaiting key documents from the Congressional Budget Office that will help determine the bill's overall price tag. As of Monday night, many Republicans were still digging into the details of the nearly 400-page tax bill. That plan includes some of Trump's big campaign promises, including scrapping federal taxes on tips, on overtime pay and on car loan interest. It's a big win for Trump, as is the name of the bill — 'The One, Big, Beautiful Bill,' adopting the president's moniker for the legislation. As expected, it also includes Trump's demand for a debt limit hike, which would cost a total of $4 trillion to punt the problem for another few years. Congress needs to raise the debt limit before its August recess to prevent default and Trump hopes to do so using this bill, rather than strike a deal with Democrats. The bill includes dozens of tax extensions from Trump's 2017 tax bill. There's also one relatively new idea – a so-called 'MAGA' savings account for kids under 18 years old. It's short for 'money account for growth and advancement,' which would create a new, flexible type of tax-free savings account for kids.
