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President Donald Trump’s new tax plan just ripped a hole through decades of tax policy. His latest push would erase federal taxes on tips, overtime pay, and Social Security benefits. This comes as Republicans prepare to bulldoze the bill through Congress without needing a single Democrat.  According to CNBC, the House Ways and Means Committee dropped an early version of the text Friday evening. It’s not final, but it reveals how far Trump is ready to go to rewrite how Americans get taxed. The committee plans to debate the legislation Tuesday. Since Republicans control the White House, the Senate, and the House, they’re using a process called reconciliation. It lets them skip the filibuster and pass it with a simple majority.  But even with that shortcut, things won’t be smooth. The budget rules are tight, and there are already fights within the GOP over how much this whole thing will cost. Republicans want extensions, but limits could block them Alex Muresianu, a senior policy analyst at the Tax Foundation, said it straight: “The narrow Republican majority in the House is going to make that process very difficult.” That’s because just a few holdouts can shut everything down. And some of them are already complaining about the size of the bill. Shai Akabas, VP of economic policy at the Bipartisan Policy Center, said a few members are demanding a “more fiscally responsible package,” which could kill or shrink some of the new perks. At the center of this is Trump’s 2017 law, the Tax Cuts and Jobs Act (TCJA). That law gave deep tax cuts to both businesses and individuals. It lowered brackets, hiked the standard deduction, increased the child tax credit, and gave a 20% break to pass-through businesses. Unless Congress steps in, most of those perks vanish after 2025.…

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Filed under: News - @ May 10, 2025 7:27 pm