Senate GOP's Tax Bill Overhaul Sparks Dissent
Senate Republicans introduced major revisions to Trump's tax and spending bill, aiming for permanency in business tax breaks while limiting state tax deductions. The proposal faces opposition within Republican ranks, focusing on fiscal deficit and Medicaid cutbacks. Further negotiations are forecasted, with tight deadlines and unified Democratic opposition complicating passage.
The Republican majority in the U.S. Senate has introduced significant alterations to President Donald Trump's pivotal tax bill. Aimed at making certain business tax breaks permanent, the proposal concurrently limits state and local tax deductions, inciting criticism within the Republican Party.
The revisions have met resistance from two camps: those demanding deeper spending cuts and others concerned about preserving social safety nets, such as Medicaid. Senator Ron Johnson emphasized the bill's inadequacy in addressing long-term fiscal challenges.
The Senate's version, diverging from the House's, envisions a $25,000 deduction cap for tip incomes and introduces several business tax breaks as permanent. The ongoing negotiations and internal rifts jeopardize the plan's passage ahead of the July 4 deadline.
(With inputs from agencies.)
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