{"id":15073,"date":"2025-05-14T02:50:57","date_gmt":"2025-05-14T02:50:57","guid":{"rendered":"https:\/\/finderica.com\/?p=15073"},"modified":"2025-05-14T02:50:57","modified_gmt":"2025-05-14T02:50:57","slug":"house-republican-tax-plan-debate-kicks-off-what-to-watch","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=15073","title":{"rendered":"House Republican tax plan debate kicks off. What to watch"},"content":{"rendered":"
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President Donald Trump waits for the arrival of Canadian Prime Minister Mark Carney at the White House in Washington, DC, on May 6, 2025.<\/p>\n

Jim Watson | Afp | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Debate for the House Republicans’ tax bill is underway \u2014 and experts are watching to see which of President Donald Trump’s priorities make the final cut.<\/p>\n

The House Ways and Means Committee, which has jurisdiction over tax, released\u00a0the full text of its portion<\/a>\u00a0of the bill Monday afternoon, and started to debate over provisions on Tuesday.<\/p>\n

GOP lawmakers included several of Trump’s campaign priorities, including tax cut extensions, no tax on tips and tax-free\u00a0overtime pay. Rather than cutting taxes on Social Security, the plan includes an extra $4,000 deduction for older Americans.<\/p>\n

The early bill did not include a higher tax rate\u00a0on some of the wealthiest Americans or plans to end the so-called “carried interest loophole,” which are both ideas that Trump supported. \u00a0<\/p>\n

However, the final bill could change significantly before the committee vote.<\/p>\n

More from Personal Finance:<\/strong>
House GOP tax bill calls for ‘SALT’ deduction cap of $30,000 for most taxpayers
Stagflation is a looming economic risk\u2014here’s what it means for your money
Here’s how to save on groceries amid food price inflation<\/p>\n

The early version of the GOP tax bill would\u00a0cost about $3.7 trillion<\/a>\u00a0over 10 years, according to estimates from the Joint Committee on Taxation. That’s under the Republicans’ $4.5 trillion limit, which could leave room for other priorities to be added or increased during Tuesday’s negotiations, experts say.\u00a0<\/p>\n

“It’s really important for any additional tax cuts to be paid for,” which will impact individual provisions, said Shai Akabas, vice president of economic policy for the Bipartisan Policy Center.<\/p>\n

As the debate heats up, here are two key areas to watch.<\/p>\n<\/div>\n

<\/a>The battle over the ‘SALT’ deduction<\/h2>\n
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With a slim House Republican majority, the limit on the deduction for state and local taxes, known as SALT, has been a key issue in tax package negotiations.\u00a0<\/p>\n

Enacted via the Tax Cuts and Jobs Act, or TCJA, of 2017, the current $10,000 cap will expire after 2025 without action from Congress.\u00a0\u00a0\u00a0\u00a0<\/p>\n

The House text released Monday would boost the SALT deduction limit to $30,000 for most taxpayers. This would phase out once modified adjusted gross income exceeds $400,000.\u00a0\u00a0\u00a0<\/p>\n

Some lawmakers have already pushed a higher SALT deduction cap<\/a>, which could still be possible with wiggle room in the budget, experts say.\u00a0\u00a0\u00a0\u00a0<\/p>\n<\/div>\n

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<\/a>Child tax credit boost<\/h2>\n
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Republican lawmakers also want to expand the child tax credit, a change that was passed via a bipartisan House bill in February 2024.<\/p>\n

TCJA temporarily increased the maximum child tax credit to $2,000 from $1,000 per child under age 17, and boosted eligibility. These changes are scheduled to sunset after 2025.<\/p>\n

The preliminary House GOP text calls for raising the credit to $2,500 per child through 2028, as long as both parents have a Social Security number. The $1,400 refundable portion, which is available without taxes owed, would be indexed for inflation.<\/p>\n

However, the proposal “does nothing for the 17 million children who currently don’t get the full $2,000 child tax credit because their families’ incomes are too low,” said Chuck Marr, vice president for federal tax policy for the Center on Budget and Policy Priorities.\u00a0\u00a0<\/p>\n<\/div>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

President Donald Trump waits for the arrival of Canadian Prime Minister Mark Carney at the White House in Washington, DC, on May 6, 2025. Jim Watson | Afp | Getty Images Debate for the House Republicans’ tax bill is underway \u2014 and experts are watching to see which of President Donald Trump’s priorities make the<\/p>\n","protected":false},"author":1,"featured_media":15074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[31,42,3885,310,1727,97,1074],"class_list":{"0":"post-15073","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-debate","9":"tag-house","10":"tag-kicks","11":"tag-plan","12":"tag-republican","13":"tag-tax","14":"tag-watch"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/15073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15073"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/15073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/15074"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}