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🌐 House Republicans release tax plan for Trump's 'big, beautiful bill'

🔹 House Republicans released a tax plan that aligns with President Donald Trump's agenda, calling it a step toward his "big, beautiful bill." Key provisions include an increased Child Tax Credit (CTC), a higher estate tax threshold (often referred to as the "death tax"), and efforts to make the 2017 Tax Cuts and Jobs Act (TCJA) permanent.

🔹 Republicans warn that failing to extend TCJA could result in a tax hike of over 20% for millions of Americans. The bill does not currently address state and local tax (SALT) deduction caps—an issue of contention between blue-state Republicans and lawmakers from lower-tax states. A millionaire’s tax bracket is missing from the draft. Trump previously suggested a small tax hike on those earning $2.5 million or more annually.

🔹 The bill is likely to include Trump's pledges to eliminate taxes on tips, overtime wages, and Social Security checks for retirees. More elements may be added through amendments in the coming days, with the full legislation expected to advance through the Ways & Means Committee soon.

➡️ "It also lays the groundwork for making Trump’s 2017 Tax Cuts and Jobs Act (TCJA) permanent. Republican leaders had warned that failing to do so would lead to a tax increase of over 20% for millions of Americans, if TCJA were allowed to expire at the end of this year."

➡️ "More elements are expected to be added in the coming days via amendments. The full legislation is expected to advance through the Ways & Means Committee, the House’s tax-writing panel, on Tuesday afternoon."

➡️ "Release of the legislation is a major sign of progress for House GOP leaders, who had been forced to punt their initial planned deadline of having a bill on Trump’s desk by sometime between Memorial Day and the Fourth of July."

➡️ "Republican lawmakers are working to pass their legislation via the budget-reconciliation process, which lowers the Senate’s passage threshold from 60 votes to 51, lining up the House’s own simple majority threshold. Reconciliation allows the party in power to effectively skirt the minority and pass broad pieces of legislation – provided they address taxes, spending or the national debt."

➡️ What is the Tax-cuts and Jobs Act (TCJA)?
The Tax Cuts and Jobs Act (TCJA) was a major tax reform law enacted in 2017 under President Donald Trump. It introduced sweeping changes to both individual and corporate tax structures, aiming to stimulate economic growth.
🔹 Lower Tax Rates - Reduced tax rates for individuals and corporations, with the corporate tax rate dropping from 35% to 21%.
🔹 Standard Deduction Increase - Nearly doubled the standard deduction, making it less beneficial for many taxpayers to itemize deductions.
🔹 Child Tax Credit Expansion - Increased the Child Tax Credit from $1,000 to $2,000 per child, benefiting families.
🔹 State and Local Tax (SALT) Deduction Cap - Limited the deduction for state and local taxes to $10,000, which impacted taxpayers in high-tax states.
🔹 Estate Tax Changes - Doubled the estate tax exemption, reducing the number of estates subject to taxation.
🔹 Business Tax Provisions - Allowed businesses to fully expense certain equipment purchases and changed how international business income is taxed.
🔹 Many provisions of the TCJA are set to expire at the end of 2025, unless Congress extends them.

➡️ https://www.msn.com/en-us/news/politics/house-republicans-release-tax-plan-for-trump-s-big-beautiful-bill/ar-AA1EwHwX?ocid=msedgntp&cvid=388b14636dc4453e9fa76764419dcd59&ei=18