“I’m just a bill. Yes, I’m just a bill. And I’m sitting here on Capitol Hill.” As Schoolhouse Rock songs progress, it may seem like they’ll be with President Donald Trump’s “Big Beautiful Bill.”
Of course, the tax, expenditure and policy megaville hasn’t been sitting on Capitol Hill since House Republicans passed it by the anniversary deadline. Senate Republicans have been working ever since to find a common foundation. But now they are running through to hand over the bill to Trump to sign the law by July 4th, opposed to another voluntary deadline.
How the bill moves through parliament
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Below, we have collected items that are likely to have the greatest impact on your life and your dollars. The biggest of these is extending the 2017 tax cut. That amounts to about $3.7 trillion that the federal government has not had in its financial resources over the next decade. A June 17 report from the Congressional Budget Office said the program cuts would save around $1.3 trillion.
Three in five Americans will continue to reduce federal taxes and increase our national debt. Within 10 years, the bill alone could ultimately add $3.3 trillion to its national debt of $3.3 trillion, according to the CBO.
skip: Other tax cuts, profits | More funds | Less funds
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In addition to extending tax cuts from the 2017 tax bill, the House version will provide a larger income tax credit for state and local taxes known as salt to those living in high-tax states such as California, New York and New Jersey. The recent Senate proposal does not increase the deduction.
One of the most talked about clauses, and one of Trump’s 2024 campaign promises, hints and overtime wages are no longer taxed. The new Senate proposal sets limits on both. Other tax cuts currently found in the House tax bill:
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How many tax bills are there?
Depending on who you ask at Capitol Hill, the bill could cost just $440 billion, but other more common estimates make it nearly ten times more expensive.
Recently, Senate Republicans have called for the Joint Tax Committee to omit the 2017 tax cuts with a new estimate. Without these portions the bill would cost $441 billion. Senate Republicans argue that these cuts should not be counted as the bill extends current tax laws. With more traditional methods, the cost is around $2.4 trillion, with no interest costs included.
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Contribution: Reuters
