GOP's 1,116-Page Bill: Key Tax Proposals and Reforms Explained

Key Tax Proposals in the GOP's 1,116-Page Bill

The GOP's legislation is a substantial package of tax reforms and spending cuts that aims to reshape the economic landscape. This 1,116-page bill was passed during an unusual late-night session, showcasing the urgency behind these changes.

2017 Tax Cuts Made Permanent

• Extending the 2017 Trump tax cuts is a major focus, with an anticipated cost upwards of $5 trillion over the next decade.
• Details indicate individual tax rate reductions totaling more than $2 trillion through 2034.

SALT Deduction Changes

The legislation proposes to elevate the SALT deduction cap, particularly affecting taxpayers in high-tax states, allowing up to $30,000 for individuals earning less than $400,000. This change may face revisions as debates among moderates continue.

Tax Relief Provisions

In addition to tax cuts, new tax proposals aim at eliminating taxes on tips, car loan interest, and overtime pay, alongside various relief measures targeting senior citizens.

Reforms in Medicaid and SNAP

Significant reforms to Medicaid may lead to loss of benefits for millions, alongside stricter eligibility for SNAP, impacting how states manage benefit allocations.

CFPB Funding Restrictions

Additionally, the bill aims to reduce funding for the CFPB, highlighting a long-standing tension over regulatory power.

Debt Ceiling Increase Plans

As a crucial part of the package, there are plans to raise the debt ceiling by $4 trillion, responding to urgent warnings from the Treasury Department about imminent defaults.

As debates continue within GOP ranks and with critiques from Democrats, this bill represents a pivotal moment for U.S. economic policy.