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What's in Trump's big bill? Trillions in tax cuts, Medicaid changes and more
AP News ^ | Updated 4:00 PM CDT, May 13, 2025 | Kevin Freking, Lisa Mascaro

Posted on 05/13/2025 2:46:50 PM PDT by E. Pluribus Unum

WASHINGTON (AP) — Republicans in Congress are moving with rapid speed to advance President Donald Trump’s big bill of tax breaks, spending cuts and beefed-up border security funding as leaders work to enact many of his campaign promises.

House committees have been laboring for months to draft the legislation, which Republicans have labeled “THE ONE, BIG, BEAUTIFUL BILL,’’ a nod to Trump himself. Speaker Mike Johnson is pushing to approve the package and send it to the Senate by Memorial Day.

Democrats say they will fight what House party leader Hakeem Jeffries calls “this extreme and toxic bill.”

Here’s a look at what’s in and out of the legislative package so far:

Tax cuts for individuals and businesses

The tax portion of the GOP legislation contains more than $5 trillion in tax cuts, according to an estimate from the Joint Committee on Taxation — costs that are partially offset by spending cuts elsewhere and other changes in the tax code.

Republicans look to make permanent the individual income tax cuts passed in President Donald Trump’s first term, plus enact some of the promises he made on the campaign trail to not tax tips, overtime and interest on auto loans. Republicans partially offset the tax breaks by rolling back the clean energy tax credits passed during Joe Biden’s presidency, such as a $7,500 tax credit for electric vehicles, bringing the overall cost of the tax cuts down to about $3.7 trillion.

The bill is expected to undergo further changes in the coming weeks. Lawmakers from New York are leading an effort to boost the state and local tax deduction, which the bill would already increase from $10,000 to $30,000 for families making less than $400,000 per year.

The legislation provides a deduction for those workers in service industry and other jobs that have traditionally relied...

(Excerpt) Read more at apnews.com ...


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
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1 posted on 05/13/2025 2:46:50 PM PDT by E. Pluribus Unum
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To: E. Pluribus Unum

” which Republicans have labeled “THE ONE, BIG, BEAUTIFUL BILL,’’”

They are calling it that so they can say they did everything MAGA and they are done.


2 posted on 05/13/2025 2:48:59 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI...)
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To: E. Pluribus Unum

Add dental to Medicare


3 posted on 05/13/2025 2:49:04 PM PDT by NoLibZone (Trump failure: Not declaring Antifa a terrorist organization.)
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To: E. Pluribus Unum
AP.

No thanks. I prefer to get my info from a credible source.

4 posted on 05/13/2025 2:49:47 PM PDT by daler
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To: E. Pluribus Unum
The tax portion of the GOP legislation contains more than $5 trillion in tax cuts

Do the tax cuts include the promised elimination of taxes on tips and on Social Security benefits?
5 posted on 05/13/2025 2:50:04 PM PDT by AnotherUnixGeek
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To: daler

Thanks for taking the time to make that important announcement.


6 posted on 05/13/2025 2:52:02 PM PDT by E. Pluribus Unum (Democrats are the Party of anger, hate and violence.)
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To: E. Pluribus Unum

They took out the social security tax elimination.


7 posted on 05/13/2025 2:53:43 PM PDT by bwest
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To: AnotherUnixGeek

Tips and OT, yes.
SSA...No.
Just a re-arranging of the earnings bracket.


8 posted on 05/13/2025 2:54:07 PM PDT by Cletus.D.Yokel (Catastrophic Anthropogenic Climate Alteration; The acronym defines the science.)
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To: NoLibZone

“ Add dental to Medicare”

Ack! I have to enroll this year. Dental would be nice.


9 posted on 05/13/2025 2:54:52 PM PDT by EQAndyBuzz (Democrats are not part of the solution. They are part of the problem.)
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To: Cletus.D.Yokel

just a rearrangement of the tax bracket.....not NO TAX on SS as he has campaigned on and reiterated many times !! Many Seniors will not be pleased.


10 posted on 05/13/2025 2:56:03 PM PDT by DrHFrog
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To: DrHFrog

:: Many Seniors will not be pleased. ::

Present and accounted for!


11 posted on 05/13/2025 2:59:06 PM PDT by Cletus.D.Yokel (Catastrophic Anthropogenic Climate Alteration; The acronym defines the science.)
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To: E. Pluribus Unum

WHAT! They couldn’t at least put the word ‘Green’ in it? -Poor AOC.


12 posted on 05/13/2025 3:03:23 PM PDT by know.your.why
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To: E. Pluribus Unum

So no tax cut on social security benefits? But no taxes on overtime which is a bad idea.


13 posted on 05/13/2025 3:16:24 PM PDT by willk (Local news media. Just as big an enemy to this country as national media)
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To: willk

But no taxes on overtime which is a bad idea.
/

You really one of those who think more taxes equal more tax revenue ?

Historical facts prove the exact opposite.


14 posted on 05/13/2025 3:28:01 PM PDT by cuz1961
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To: All

The article phrases the final tax cut number to be $3.7 Trillion. Almost certainly over 10 years, so make that $370B per year.

That should get the deficit up to about $2.4T — per year, added to the debt.

Now the bad news (as if that all wasn’t bad). The estimates probably have absurd projections for interest on the national debt. Like 1% or something. Current number is 3.4%, and rising as instruments expire (mature) and have to be rolled over at current rates. For 10 years, rates much lower than now.

The 10 yr today was 4.49%. In 2015 it was 2%. We have to roll those instruments over at over DOUBLE the rate.


15 posted on 05/13/2025 3:28:38 PM PDT by Owen
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To: E. Pluribus Unum

I noticed those of us on social security are still paying income tax - again


16 posted on 05/13/2025 3:35:13 PM PDT by grobdriver (The CDC can KMA!)
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To: Cletus.D.Yokel

I get the reason for those promises from a vote-buying perspective. But for policy, tips and overtime is ridiculous. Exempt employees regularly work overtime—and have to pay taxes on their income that covers that. Our tipping culture is out of control, and there’s no reason why those who receive tips should get a tax break that other similar workers don’t get.

They could have simply said that Congress won’t go for no tax on tips and overtime, but instead are shaving down tax rates in those common brackets.

SS tax should be based on income. Say, no tax up to $100,000.


17 posted on 05/13/2025 3:41:18 PM PDT by 9YearLurker
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To: E. Pluribus Unum

Also, no interest on auto loans is an awful idea. Sure, it might seem to boost the auto biz a bit, but consumers either can’t afford new cars and shouldn’t be incentivized to buy them or can afford new cars—and so don’t need an added tax break.


18 posted on 05/13/2025 3:43:01 PM PDT by 9YearLurker
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To: grobdriver
Yep, not only was ‘excluding SS income’ removed from the tax bill, they didn’t even reduce the 85% taxable part.

They. could have at least reduced that percentage some, they couldn’t even do that—very sad.

At least they rewarded high income/high tax blue states by raising SALT to a $30,000. /s

19 posted on 05/13/2025 3:54:05 PM PDT by volare737 (Diversity is something to be overcome, not celebrated.)
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To: willk

I’m pretty sure that ‘carried interest’ is still going to be treated as capital gains—a big win for hedge fund operators, but nothong for those retirees on fixed incomes.


20 posted on 05/13/2025 4:05:13 PM PDT by volare737 (Diversity is something to be overcome, not celebrated.)
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