Americans view the GOP's budget and tax bill
Digest more
WASHINGTON (AP) — Senate Republicans on Monday proposed deeper Medicaid cuts, including new work requirements for parents of teens, as a way to offset the costs of making President Donald Trump’s tax breaks more permanent in draft legislation unveiled for his “big, beautiful bill.”
Senate Republicans introduced tax cuts to prevent a $4 trillion tax hike, including permanent lower tax brackets and new deductions for tips and overtime.
For many families, another key source of savings is the child tax credit. Senate Republicans proposed permanently increasing the credit available to parents, which would be set at $2,200 per child, beginning in the 2025 tax year. House Republicans had proposed to bump up the credit to $2,500, but only through 2028.
A proposal by Senate Republicans would adjust the pace at which some crucial home energy efficiency and electric vehicle tax credits are phased out in timelines different from what House Republicans proposed in the multitrillion-dollar tax bill they passed last month.
GOP leaders are scrambling to get all corners of the party on board to advance Trump’s biggest campaign promises.
The House-passed version of Republicans’ tax and spending bill would add $2.8 trillion to US deficits over the next decade, according to new estimates from the Congressional Budget Office that incorporate the broader impact the legislation would have on the economy and federal budget.
Republicans want to let businesses use a little-known tax credit to pay insurance companies to cover their workers’ leave.
Revised Medicaid cuts, clean-energy changes cause friction among Republicans as SALT tensions also linger.