On Monday (12 May), the House Republicans published a detailed tax provision of their massive fiscal law and outlined the agenda included in the trumps that reduces taxes across the deck, focusing on elite universities, incentives for renewable energy sources and immigrants. The package is the highlight of “One Big, Beautiful Bill” President Donald Trump – and comes after weeks of tense negotiations between GOP legislators.
While business interests have gained many of their highest applications, the law also intertwines in the Trump populist campaign, such as tax relief on tips and overtime.
No tax increases for millionaires
Despite speculation, the Republicans House Republicans rejected the proposal supported by Trump to raise the highest income tax rate for individuals earning more than $ 2.5 million a year. The bill would permanently maintain 37% of the highest tax rate and after 2025 would avoid the planned increase to 39.6%.
Deduction
The state and local tax (salt) deduction ceiling would increase to $ 30,000 per couples ($ 15,000 for each fillers), but would be eliminated for income over $ 400,000 for couples. Republicans from high taxes such as New York and California have already criticized this increase as insufficient and threatened to block the account without much relief.
Large breaks for workers: tips, overtime and automatic loans
Fulfilling key campaigns Trump promises that the bill would issue tips and overtime tax by 2028 by 2028.
Ivy League, a private foundation faces steep taxes
In the great escalation of Trump’s cultural war with elite academy, the bill would increase taxes from rich university foundations and move from 1.4% to 21% based on the size of the foundation and students’ population. Harvard, Yale, Stanford, Mit and Princeton would be among the most difficult interventions.
Private foundations – including the Gates Foundation – would also record new graded tax rates up to 10%, depending on the size of the asset. The provision is considered to be part of the wider Republican efforts to support the powerful philanthropic entities.
EV and Green Energy Credits have decreased
By the end of 2026, the bill would eliminate tax loans of electric vehicles and regulate the credits for used and commercial ev. By 2031, loans for clean energy production and investment tax loans would be excluded, which should reduce short programs that will last until 2032.
The nuclear energy production would also end in 2031. These movements mean a sharp return of the climate agenda of President Biden.
Bonus for seniors
Older citizens who do not disappoint deducts would receive a $ 4,000 bonus for their standard deduction by 2028, thus retreating over $ 75,000 in individual income. This will replace Trump Campaign’s commitment to end social security taxes
A new remittance tax for immigrants
The bill would impose a 5% tax on the remittance sent abroad, which is measures aimed at limiting money transfers to foreign countries. American citizens could apply for credits to balance costs, but the tax will hit the most difficult households of immigrants.
Victory for a large business and manufacturer
Multinational corporations would notice lower income tax rates, while US manufacturers would receive 100% depreciation for new “qualified production properties”, such as factories built during the second Trump term.
The bill will also restore the temporary deduction from research and development by 2029 – the highest priority for the technology and production sectors.
Children’s Tax Credit and “Maga Accounts”
Tax loan for children would increase by 2028 to $ 2,500 per child before returning to $ 2,000. The bill also represents the “Maga” -nova savings vehicles exempt from tax, which enable annual contributions for children up to $ 5,000. Funds could be used for education, buying houses or introducing small businesses.
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The key vote of the house is expected this week
The Committee of the Chamber of Deputies and funds presented the tax provisions of the bill on Monday, with the vote of the committee scheduled for Tuesday and a complete vote in the house expected before 26 May. Republicans hope for the Senate until 4 July. Without expectations of democratic support, GOP must maintain almost valuable unity because of their narrow majority in both chambers.
Probably revision of the Senate
House Speaker Mike Johnson expressed confidence that the bill would pass the house to a commemorative day. However, the Senate may revise the main provisions. Trump and Republicans hope to deliver the final legislation by July 4.
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