, are also looming problems.
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:
Central to the GOP package is 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 Trump’s first term, in 2017, plus enact promises he made on the 2024 campaign trail to not tax tips, overtime and interest on some auto loans.To partially offset the lost revenue, Republicans propose repealing or phasing out more quickly the clean energy tax credits passed during Joe Biden’s presidency, helping to bring down the overall cost of the tax portion to about $3.8 trillion.
But lawmakers from New York, California and other high-tax states say the boost for state and local tax deductions, called SALT, is insufficient. As proposed, it rises from $10,000 to $30,000 for joint filers making less than $400,000 per year. They are pushing for more.The bill also includes a temporary $2,000 boost to the standard deduction, bringing it to $32,000 for joint filers. And there is a temporary $500 increase in the child tax credit, bringing it to $2,500.
The estate tax exemption raises to $15 million.
Several of the provisions Trump touted on the campaign trail would be temporary, lasting roughly through his second term in office. The tax breaks for tips, overtime and car loan interest expire at the end of 2028. That’s also the case for a $4,000 increase in the standard deduction for seniors.Money being withheld by EPA would pay for things like heat pumps to reduce energy costs and pollution, wildfire preparedness and infrastructure upgrades to protect drinking water from floods and earthquakes, Murray said. “Blocking this funding is hurting communities everywhere,’' she said.
Georgia Sen. Jon Ossoff asked Zeldin why he had canceled a $19.8 million grant to Thomasville, Georgia, to replace a wastewater collection system and build a community health clinic.“Is a new health clinic for Thomasville woke?” Ossoff asked, noting that the grant was approved under an environmental justice program the EPA has terminated.
Zeldin again cited policy priorities before Ossoff, a Democrat, cut him off. “You hurt my constituents,’' he said.Zeldin later said grants to Thomasville and towns in Alaska and Washington state may be restored if language about environmental justice and diversity is removed, in accordance with an executive order by Trump.