Latest news with #budgetpackage
The Independent
19 hours ago
- Business
- The Independent
Democrats have a dirty secret - they actually like some of the tax cuts in Trump's ‘big beautiful bill'
Some of the sweeping tax cuts proposed in President Donald Trump 's massive spending package have found support among Democrats — even as they are expected to oppose the legislation over proposed cuts to Medicaid and other government services when it comes up for debate in the Senate later this month, according to a new report. The gargantuan budget package, which House Republicans and the White House have dubbed the One Big Beautiful Bill Act, passed the House by a single vote last month and is now drawing heat from fiscal hawks in both chambers as well as Tesla CEO Elon Musk, who was fresh off his months-long stint as a special government employee when he began threatening to back challengers to any legislator who votes for the bill. Still, there are facets of the proposal that have appeal for some Democrats, the New York Times reports. Virginia Rep. Don Beyer, a Democrat who is also a wealthy car dealership owner, told the Times his party is 'in general very much in favor of reducing taxes on working people and the working poor' when asked about Trump's plan to end taxes on service workers' tips. 'Those people are living on tips,' he added. Trump's tip tax cut plan has also attracted attention from Sen. Jacky Rosen of Nevada, a state where service workers make up a large and powerful voting bloc that has traditionally supported Democrats but shifted to Trump in large numbers during the 2024 presidential election, handing him the Silver State's electoral votes. Rosen, a Democrat, took to the Senate floor last month to advance a bill approving Trump's 'no tax on tips' plan. It passed unanimously even though the measure was largely symbolic because the U.S. constitution requires tax laws to originate in the House 'I am not afraid to embrace a good idea, wherever it comes from,'. she said at the time in remarks on the Senate floor. Yet despite the support for some of the individual tax provisions in the plan, it's highly unlikely that it will be able to muster enough if any Democrats to ease the way to Trump's desk, even under a Senate procedure known as budget reconciliation, which fast-tracks some types of spending legislation without subjecting it to the upper chamber's de facto 60-vote threshold for passage. Democrats are expected to unanimously vote against the legislation in the upper chamber, where it has also attracted opposition from some Republicans who've complained that the cuts to spending in the package don't go far enough to offset the reduced revenue caused by provisions meant to enact Trump campaign promises to end taxes on tips for service workers, as well as taxes on overtime pay for hourly workers and on social security benefits for seniors. Nonpartisan experts such as those at the Congressional Budget Office have warned that the reduced tax receipts would blow a massive hole in the federal budget and jeopardize America's long-term fiscal outlook, but that hasn't stopped some prominent Democrats from getting behind the individuals tax cuts. Trump and his allies hope the prominent tax cut proposals will blunt Democrats' efforts to paint the One Big Beautiful Bill Act as a giveaway to wealthy GOP donors that will gut government services while only providing limited relief for working-class voters. To that end, the president and others in his camp have routinely taken to social media to argue that anyone who votes against the bill is effectively voting for tax increases because the legislation makes permanent a number of temporary tax cuts enacted in the 2017 Tax Cuts and Jobs Act, which Trump signed into law during his first term. Democrats, meanwhile, remain opposed to the bill's massive cuts to Medicare and other measures that make it harder for people to claim tax credits meant to boost lower-income Americans' bottom lines. Rep. Brad Schneider, an Illnois Democrat, told the Times that the whole bill had to be considered rather than any individual provision or provisiosn. 'Any one thing — a tax credit or a tax cut — might make sense, but you've got to take a look at the whole picture,' he said.
Zawya
5 days ago
- Business
- Zawya
What's in the Republican tax and spending plan?
WASHINGTON - The Republican-led House of Representatives has passed a sweeping budget package that would fulfill many of President Donald Trump's priorities. The Republican-led Senate is now considering the package and is likely to make significant changes. Here is a summary of the major elements of the package, with cost estimates by the Congressional Budget Office or the Joint Committee on Taxation. CBO estimates the bill would add $2.4 trillion to the $36.2-trillion debt over 10 years, reduce revenues by $3.67 trillion and cut spending by $1.25 trillion. The number of people without health insurance would increase by 10.9 million over that period due to changes to programs such as Medicaid. TAX CUTS AND TAX BREAKS Makes permanent the lower income tax rates in Trump's 2017 Tax Cuts and Jobs Act that are currently due to expire at the end of 2025. (Cost: $2.2 trillion) Extends the increased alternative minimum tax exemption. (Cost: $1.4 trillion) Extends the standard deduction and boosts it by an additional $1,000 to $1,500 until 2029. (Cost: $1.3 trillion) Extends and increases tax break for owners of "pass-through" businesses, such as sole proprietorships and LLCs. (Cost: $809 billion) Expands the Child Tax Credit to $2,500 from $1,000 until 2029, and keeps it at $2,000 after that, indexed to inflation. (Cost: $797 billion) Raises the estate tax exemption from $14 million to $15 million. (Cost: $212 billion) Extends tax breaks for multinational corporations. (Cost: $174 billion) Exempts taxes on overtime pay until 2029. (Cost: $124 billion) Creates a new $4,000 deduction for seniors. (Cost: $66 billion) Exempts taxes on interest payments on loans for domestic autos until 2029. (Cost: $58 billion) Exempts taxes on some tipped income until 2029. (Cost: $40 billion) Exempts up to $5,000 for contributions to scholarship funds for private schools. (Cost: $20.4 billion) Allows parents to contribute up to $5,000 tax-free each year to "Trump Accounts" to be used for a child's school and other costs when they reach adulthood. (Cost: $17.2 billion) Allows taxpayers to deduct up to $40,000 for state and local tax (SALT) payments, up from $10,000 now, with benefits phasing out for households that make more than $500,000. (Would save $787 billion compared to an alternative scenario in which no limits were in place for this deduction.) OTHER TAX CHANGES Raises taxes on the biggest private university endowments from 1.4% to 21%. (New revenue: $22.6 billion) Imposes a new 5% tax on funds sent by immigrants to their home countries. (New revenue: $22.2 billion) Eliminates taxes on firearm silencer sales and removes them from a national registry. (Cost: $1.4 billion) Eliminates tax on gun manufacturers. Gives the government power to end the tax-exempt status of "terrorist-supporting organizations." MEDICAID Requires able-bodied adults who have no dependents to work, volunteer or be in school at least 80 hours a month starting in 2027. Bolsters verification efforts that check whether participants and healthcare providers are eligible to participate, and removes rules that make it easier to enroll. Excludes non-citizens from the program and penalizes states that use their own funds to provide coverage to illegal immigrants. Blocks regulations that required minimum staffing levels at nursing homes and other long-term care facilities. Prohibits funding for gender transition therapies for minors. Prohibits payments to large providers like Planned Parenthood that specialize in birth control, abortion and other reproductive health services. Limits state taxes on providers that are used to raise the federal government's contribution. Total Medicaid cuts: $785 billion OTHER HEALTH Restricts health benefits for some immigrants. (Savings: $117 billion) Imposes stricter eligibility requirements for Affordable Care Act exchange coverage. (Savings: $82 billion) ENERGY, ENVIRONMENT, COMMUNICATIONS Ends tax breaks for electric vehicles. Ends tax breaks for clean electricity and green energy. Cancels funding for green-energy grant programs in the 2022 Inflation Reduction Act, including vehicle manufacturing, home efficiency upgrades, electricity transmission, wind power. Creates incentives for pipelines, natural gas exports and exploration. Repeals grant programs for purchasing electric heavy-duty vehicles. Repeals grants to reduce air pollution, greenhouse gas emissions. Repeals fuel-efficiency standards for automobiles and pickup trucks. Makes more electromagnetic spectrum bands for communication available for auction. Prohibits states from regulating artificial intelligence. HOMELAND SECURITY Border wall construction Surveillance towers, drones and other border-security equipment Increase staffing at U.S. Customs and Border Protection from 46,400 to 55,000 Increase law enforcement protection of the president Reimburse states for border-security costs. Total cost: $79 billion IMMIGRATION AND JUSTICE Imposes new fees of up to $5,000 for immigrants' work permits, court hearings, applications for asylum and other matters. Provides funding to hire 10,000 new immigration enforcement officers, and funding for 1 million more deportations. Provides additional funds for government agencies to investigate visa fraud, run criminal background checks and DNA testing, and supervise unaccompanied children. Prevents federal courts from enforcing contempt citations related to injunctions or temporary restraining orders against the government. Total savings: $110 billion MILITARY Increase spending on shipbuilding (Cost: $32 billion) Air and missile defense (Cost: $24 billion) Munitions (Cost: $19.5 billion) Nuclear weapons (Cost: $12.6 billion) Border security (Cost: $5 billion) Total cost: $144 billion FOOD ASSISTANCE Increased work requirements for some of the 41 million participants in the SNAP food aid program Shift some costs from federal government to states starting in 2028 Savings: $238 billion EDUCATION Changes student loan repayment plans (Savings: $295 billion) Imposes borrowing limits for some student loan programs (Savings: $51 billion) Tightens eligibility for Pell Grants (Savings: $8 billion) Limits the government's ability to cancel student debt (Savings: $32 billion) Total savings: $349 billion
CBS News
22-05-2025
- Business
- CBS News
House passes Trump's budget in razor-thin vote after dramatic all-night session
Washington — The House narrowly passed President Trump's domestic policy bill Thursday following a dramatic all-night session after days of negotiations. In a 215 to 214 vote, all but two House Republicans supported the massive budget package — the centerpiece legislation of his second-term agenda — in a vote that came hours after unveiling an updated version of the legislation that GOP leaders hoped would satisfy enough holdouts. GOP Reps. Thomas Massie of Kentucky and Warren Davidson of Ohio opposed the bill. House Freedom Caucus chairman Andy Harris of Maryland voted present. The measure cleared a critical procedural hurdle in the wee hours of the morning, teeing up the vote on final passage after days of consternation among the House Republican conference. The bill will now go to the Senate, where some Republicans have already voiced some opposition. Congressional leaders have said they want to get it to Mr. Trump's desk by July 4. The legislation, dubbed the One Big Beautiful Bill Act, addresses the president's tax, defense and energy priorities, and has overcome several setbacks since the beginning of the year after GOP leadership made repeated assurances to holdouts that their concerns would be addressed later if they kept the legislation moving forward. But as Speaker Mike Johnson's self-imposed deadline to get the measure across the finish line in the House by Memorial Day quickly approached, the Louisiana Republican was facing increasing opposition from several factions of his party to parts of the bill involving Medicaid, the state and local tax deduction and other provisions. A 42-page managers amendment released by House GOP leaders late Wednesday includes changes to win over both the budget hardliners in the House Freedom Caucus and blue-state Republicans pressing to ease the tax burden on their constituents. The new version would, among other things, move up the implementation of Medicaid work requirements from the beginning of 2029 to the end of 2026, a change sought by hardliners. Another change to the bill would more quickly end tax credits for new renewable energy power plants, requiring them to begin construction within 60 days of the enactment of the legislation and be in service by the end of 2028. The measure makes an exception for nuclear plants, which must be under construction by the end of 2028. Johnson could only afford three defections on the bill, with all members present and voting, given his slim majority. Massie was the sole Republican to oppose the key procedural vote on the measure earlier Thursday. "If something is beautiful, you don't do it after midnight," Massie said on the House floor. Majority Leader Steve Scalise, a Louisiana Republican, delivered his final pitch to House Republicans ahead of the vote, urging that the bill will deliver on GOP promises. "If you vote no, you're voting against American energy, you're voting against securing America's border, you're voting against helping those middle class families," Scalise said. Johnson touted the legislation on the House floor, saying it "gets Americans back to winning again." "This one big beautiful bill is the most consequential legislation that any, any party has passed, certainly under a majority this thin," the speaker said. All Democrats opposed the package. And after House Democrats threw up procedural roadblocks overnight to delay a vote on the measure, House Minority Leader Hakeem Jeffries railed against the bill in a speech from the House floor early Thursday, calling it a "reckless, regressive and reprehensible GOP tax scam." "This is one big, ugly bill that House Republicans are trying to jam down the throats of the American people under the cover of darkness," Jeffries said. The New York Democrat, alluding to the midterm elections next year, warned that "this day might very well turn out to be the day that House Republicans lost control of the United States House of Representatives." The vote comes after right-wing holdouts met Wednesday afternoon with Mr. Trump and Johnson at the White House. After the meeting, Johnson huddled with other members of the Republican conference to brief them on the changes while House Freedom Caucus members met separately. Before the White House meeting Wednesday, Rep. Andy Harris of Maryland, who chairs the conservative House Freedom Caucus, said he wasn't optimistic the bill could pass this week, though he was "pretty confident" it could be passed within 10 days. But other budget hardliners said after the meeting that negotiations were headed in the right direction. During a visit to the Capitol Tuesday, Mr. Trump pressured Republicans to fall in line behind the legislation — which House GOP leaders have named "The Big, Beautiful Bill" — and suggested that those who don't could face primary challenges. In a statement of administrative policy issued Wednesday, the White House Office of Management and Budget urged House Republicans to pass the measure, saying it "reflects the shared priorities of both Congress and the Administration," adding, "failure to pass this bill would be the ultimate betrayal." The details of the updated version of the legislation came together in the final hours before the vote. Johnson also negotiated with Republicans from blue states over a provision on state and local tax deductions, known as SALT. The moderates advocated for an increase to the SALT cap, currently set at $10,000, but argued that the $30,000 cap outlined in the package remained too low. An agreement was reached to increase the deduction to $40,000 per household for incomes up to $500,000, according to the managers amendment. The vote marks a key victory for Johnson, after days of shepherding his conference through difficult disagreement over the legislation. But even with the victory, the legislation is expected to face resistance in the Senate — where numerous Republicans have said they'll seek changes to the bill. Johnson met with Senate Republicans to discuss the budget process Tuesday. Senate Majority Leader John Thune, a South Dakota Republican, told reporters Wednesday that the speaker would "like to see as little change to the product as possible, because they cobble together a very delicate balance over there." But Thune said "the Senate will have its imprint on it."
CBS News
22-05-2025
- Business
- CBS News
House set to vote on Trump's tax and domestic policy bill after all-night session
Washington — The House was moving early Thursday toward a vote on President Trump's domestic policy bill, hours after unveiling an updated version of the legislation that Republican leaders hope will satisfy enough holdouts. The measure cleared a critical hurdle — a procedural vote to begin debate on the massive budget package. A vote on the bill could follow later in the morning. The legislation, which addresses the president's tax, defense and energy priorities, has overcome several setbacks since the beginning of the year after GOP leadership made repeated assurances to holdouts that their concerns would be addressed later if they kept the legislation moving forward. But as Speaker Mike Johnson's self-imposed deadline to get the measure across the finish line in the House by Memorial Day quickly approached, the Louisiana Republican was facing increasing opposition from several factions of his party to parts of the bill involving Medicaid, the state and local tax deduction and other provisions. A 42-page managers amendment released by House GOP leaders late Wednesday includes changes to win over both the budget hardliners in the House Freedom Caucus and blue-state Republicans pressing to ease the tax burden on their constituents. The new version would, among other things, move up the implementation of Medicaid work requirements from the beginning of 2029 to the end of 2026, a change sought by hardliners. Another change to the bill would more quickly end tax credits for new renewable energy power plants, requiring them to begin construction within 60 days of the enactment of the legislation and be in service by the end of 2028. The measure makes an exception for nuclear plants, which must be under construction by by the end of 2028. Johnson can only afford three defections if all members are present and voting, given his slim majority. All Democrats are expected to oppose it. Right-wing holdouts met Wednesday afternoon with Mr. Trump and Johnson at the White House. After the meeting, Johnson huddled with other members of the Republican conference to brief them on the changes while House Freedom Caucus members met separately. Before the White House meeting Wednesday, Rep. Andy Harris of Maryland, who chairs the conservative House Freedom Caucus, said he wasn't optimistic the bill could pass this week, though he was "pretty confident" it could be passed within 10 days. But other budget hardliners said after the meeting that negotiations were headed in the right direction. During a visit to the Capitol Tuesday, Mr. Trump pressured Republicans to fall in line behind the legislation — which House GOP leaders have named "The Big, Beautiful Bill" — and suggested that those who don't could face primary challenges. In a statement of administrative policy issued Wednesday, the White House Office of Management and Budget urged House Republicans to pass the measure, saying it "reflects the shared priorities of both Congress and the Administration," adding, "failure to pass this bill would be the ultimate betrayal." The details of the updated version of the legislation came together in the final hours before the vote. Johnson also negotiated with Republicans from blue states over a provision on state and local tax deductions, known as SALT. The moderates advocated for an increase to the SALT cap, currently set at $10,000, but argued that the $30,000 cap outlined in the package remained too low. An agreement was reached to increase the deduction to $40,000 per household for incomes up to $500,000, according to the managers amendment. GOP Rep. Mike Lawler of New York said Wednesday night that, with the increase, he believed all those opposed to the original provision were now on board. But even if Johnson is able to shepherd the legislation through the lower chamber, it's expected to face resistance in the Senate — where numerous Republicans have said they'll seek changes to the bill. Johnson met with Senate Republicans to discuss the budget process Tuesday. Senate Majority Leader John Thune, a South Dakota Republican, told reporters Wednesday that the speaker would "like to see as little change to the product as possible, because they cobble together a very delicate balance over there." But Thune said "the Senate will have its imprint on it."
CBS News
22-05-2025
- Business
- CBS News
House appears set to vote on Trump's tax and domestic policy bill early Thursday
Washington — The House was moving early Thursday toward a vote on President Trump's domestic policy bill, hours after unveiling an updated version of the legislation that Republican leaders hope will satisfy enough holdouts. The measure cleared a critical hurdle — a procedural vote to begin debate on the massive budget package. A vote on the bill could follow later in the morning. The legislation, which addresses the president's tax, defense and energy priorities, has overcome several setbacks since the beginning of the year after GOP leadership made repeated assurances to holdouts that their concerns would be addressed later if they kept the legislation moving forward. But as Speaker Mike Johnson's self-imposed deadline to get the measure across the finish line in the House by Memorial Day quickly approached, the Louisiana Republican was facing increasing opposition from several factions of his party to parts of the bill involving Medicaid, the state and local tax deduction and other provisions. A 42-page managers amendment released by House GOP leaders late Wednesday includes changes to win over both the budget hardliners in the House Freedom Caucus and blue-state Republicans pressing to ease the tax burden on their constituents. The new version would, among other things, move up the implementation of Medicaid work requirements from Oct. 1, 2027 to Dec. 31, 2026, a change sought by hardliners. Another change to the bill would more quickly end tax credits for new renewable energy power plants, requiring them to begin construction within 60 days of the enactment of the legislation and be in service no later than Dec. 31, 2028. The measure makes an exception for nuclear plants, which must be under construction by Dec. 31, 2028. Johnson can only afford three defections if all members are present and voting, given his slim majority. All Democrats are expected to oppose it. Right-wing holdouts met Wednesday afternoon with Mr. Trump and Johnson at the White House. After the meeting, Johnson huddled with other members of the Republican conference to brief them on the changes while House Freedom Caucus members met separately. Before the White House meeting Wednesday, Rep. Andy Harris of Maryland, who chairs the conservative House Freedom Caucus, said he wasn't optimistic the bill could pass this week, though he was "pretty confident" it could be passed within 10 days. But other budget hardliners said after the meeting that negotiations were headed in the right direction. During a visit to the Capitol Tuesday, Mr. Trump pressured Republicans to fall in line behind the legislation — which House GOP leaders have named "The Big, Beautiful Bill" — and suggested that those who don't could face primary challenges. In a statement of administrative policy issued Wednesday, the White House Office of Management and Budget urged House Republicans to pass the measure, saying it "reflects the shared priorities of both Congress and the Administration," adding, "failure to pass this bill would be the ultimate betrayal." The details of the updated version of the legislation came together in the final hours before the vote. Johnson also negotiated with Republicans from blue states over a provision on state and local tax deductions, known as SALT. The moderates advocated for an increase to the SALT cap, currently set at $10,000, but argued that the $30,000 cap outlined in the package remained too low. An agreement was reached to increase the deduction to $40,000 per household for incomes up to $500,000, according to the managers amendment. GOP Rep. Mike Lawler of New York said Wednesday night that, with the increase, he believed all those opposed to the original provision were now on board. But even if Johnson is able to shepherd the legislation through the lower chamber, it's expected to face resistance in the Senate — where numerous Republicans have said they'll seek changes to the bill. Johnson met with Senate Republicans to discuss the budget process Tuesday. Senate Majority Leader John Thune, a South Dakota Republican, told reporters Wednesday that the speaker would "like to see as little change to the product as possible, because they cobble together a very delicate balance over there." But Thune said "the Senate will have its imprint on it."
