Senate Republicans Unveil Tax Bill Changes Amidst Controversy
Senate Republicans introduced modifications to Trump's tax-cut bill, proposing permanent business tax breaks while capping state and local tax deductions. The changes, differing from the House's version, create uncertainty for its passage before the July 4 deadline. Key changes involve tax deductions and addressing Medicaid accounting maneuver criticisms.
In a significant development, U.S. Senate Republicans unveiled several proposed amendments to President Donald Trump's ambitious tax-cut and spending bill on Monday. A pivotal adjustment involves making business tax breaks permanent while setting a $10,000 cap on state and local income tax deductions. The latter proposal has elicited criticism from House Republicans who favor the higher $40,000 deduction initially approved by the House.
The disparities between the Senate and House versions present a challenge for Republican leaders aiming to finalize the bill, a cornerstone of Trump's domestic agenda, by the self-imposed July 4 deadline. Notably, the Senate Finance Committee's proposal suggests reduced deductions on tipped income and overtime pay, potentially affecting many taxpayers.
Furthermore, the legislation addresses criticism of an accounting strategy dubbed the 'provider tax,' while including permanent business tax incentives like full expensing for R&D and new capital investments. Potential repercussions loom, as the bill proposes increasing the debt ceiling by $5 trillion, necessitating further congressional actions to prevent a default on the national debt.
(With inputs from agencies.)
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