Trump's tax bill aims to extend 2017 cuts
By Riley Beggin
USA Today
WASHINGTON - House Republicans have announced a sweeping tax plan that could become the central piece of President Donald Trump's signature legislative accomplishment of his second term.
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The proposal unveiled May 12 [2025] would make the 2017 Tax Cuts and Jobs Act permanent, increase the standard deduction, and increase the child tax credit to $2,500 through 2028 and $2,000 after that. The child tax credit is currently $2,000 but will drop back to $1,000 at the end of this year [2025] if not extended.
..... IN a statement posted to Truth Social, Trump wrote that the proposed bill is "GREAT" and sent a warning message to congressional Republicans who will likely push for changes" "We have no alternative, WE MUST WIN""
..... It would also temporarily cerate a tax deduction for tips and overtime through 2028, and implement an additional $4,000 tax deduction for seniors.
..... It would raise the cap for state and local tax deductions to $30,000 from the $10,000 cap created in 2017, with a lower deduction for people who make more than $400,000. That provision is likely to cerate fireworks among House Republicans: Several GOP members from high-tax states have pushed for the cap to be raised higher, and some have already said they won't support the bill as-is.
..... Children would be given $1,000 each for newly crated "money accounts for growth and investment" that parents open in their name, also known as a "MAGA" savings account.
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It would implement a 5% tax on money freeing workers in the United States send home to their families, with an exemption for U.S. citizens sending money abroad.
..... And it would raise the debt ceiling by $4 trillion - a crucial move to avoid a catastrophic economic collapse when teh governemtn hits the current debt ceiling, as is expected in August. [2025]
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The proposal also includes several provisions that reflect recent Republican causes: it would increase taxes on private university endowments, with higher rate for larger endowments like those held by elite schools such as Harvard University and exceptions for religious universities; increase taxes on private foundations; and revoke the tax-exempt status of "terrorist supporting organizations," which some view as attempt to punish pro-Palestinian nonprofit organizations.
..... It targets several clean energy tax credits implemented under the Democratic reconciliation bill passed under President Joe Biden, including eliminating tax credits for electric vehicles and credits for clean energy home investments and would sunset tax credits for certain types of renewal energy productions.
..... The House Ways and Means Committee planned to meet on May 13 [2025] to debate the proposal, which is already being lamed by Democrats as a give-away to the wealthiest Americans.
..... Key conservative allies have endorsed the proposal. David McIntosh, president of the Club for Growth, said in a statement that the bill is "a critical step toward fulfilling the promises conservatives made to voters in the last election. [2024]