Senate Republicans Plan to Release Major Revisions to Trump's Tax Bill
Source: Yahoo! Finance/Bloomberg
Mon, June 9, 2025 at 2:55 PM EDT
(Bloomberg) — Senate Republicans intend to propose revised tax and health-care provisions to President Donald Trump’s $3 trillion signature economic package this week, shrugging off condemnations of the legislation by Elon Musk as they rush to enact it before July 4. The Senate Finance Committee’s plan to extract savings from the Medicaid and — perhaps — Medicare health insurance programs could depart in key respects from the version of the giant bill that narrowly passed the US House in May.
The release of the panel’s draft will likely touch off a new round of wrangling between fiscal conservatives and moderates. Businesses in the energy, health care, manufacturing and financial services industries will be watching closely as the week progresses. Key members of Congress and Trump officials charged with shepherding the tax bill are slated to meet on Thursday to discuss the bill, according to a White House official.
SALT Dilemma
A crucial decision for Majority Leader John Thune, Committee Chairman Mike Crapo and other panel members will be how to handle the $40,000 limit on state and local tax deductions that was crucial to passage of the bill in the House. Senate Republicans want to scale back the $350 billion cost of increasing the cap from $10,000 to $40,000 for those making less than $500,000.
House Speaker Mike Johnson and a group of Republican members from high-tax states have warned that any diminishing of the SALT cap would doom the measure when it comes back to the House for a final vote. At the same time, so-called pass-through businesses in the service sector are pushing to remove a provision in the House bill that limits their ability to claim SALT deductions.
Read more: https://finance.yahoo.com/news/senate-republicans-plan-release-major-090000831.html
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