Archive · 17 Jun 2025
Senate Unveils Changes to Trump's Tax and Spending Bill
The Senate is working on its own version of Trump's tax plan.
It will change some things from the House's version, like how much you can deduct for state and local taxes, and taxes on foreign investors.
The Senate plan may also cut Medicaid more than the House's plan, which provides health insurance for poor people.
They're also making some business tax breaks permanent and plan to remove taxes on guns.
There are many changes being proposed, and they're still debating how to proceed.
Senate Republicans propose changes to Trump's fiscal package, including reductions to SALT deductions and modifications to the 'revenge' tax.
The Senate bill includes deeper cuts to Medicaid than the House version, particularly affecting low-income and disabled individuals.
Senate aims to make certain business tax breaks permanent, diverging from the House's limited extension.
The Senate bill would eliminate the electric vehicle tax credit, and cap the amount of tipped wages that can be exempt at $25,000 per individual.
The Senate version modifies the House's approach to university endowment taxes and eliminates many taxes on guns.
- Who
- Senate Republicans, President Trump, and various stakeholders.
- What
- Senate Republicans are modifying Trump's fiscal package, with key differences from the House version.
- When
- The Senate Finance Committee released their version of the legislation.
- Where
- The US Senate.
- Why
- To advance the economic agenda and make changes to the House version.
Democrats/Advocates
Republicans
Medicaid Cuts and Tax Credits
Democrats/Advocates
Concerned about deeper Medicaid cuts impacting low-income individuals and disabled people, and electric vehicle tax credits.
Republicans
Republicans aim to cut Medicaid spending to fund tax breaks.
- SALT Deduction
- $10,000 cap proposed
- 'Revenge' Tax
- Delayed and modified in Senate version
- Medicaid Cuts
- Deeper cuts in Senate bill
- Business Tax Breaks
- Permanent extension in Senate
- EV Tax Credit
- Eliminated in Senate
- Tipped Wages
- Capped at $25,000
