US Senate Unveils New $4.2 Trillion Tax Reform Bill, Votes Expected Soon

In Brief:

A new version of Trump’s $4.2 trillion tax reform bill is set for a vote before the July 4th deadline.

The draft includes compromises on social security cuts, SALT deductions, and renewable energy tax credits.

The Republican-controlled US Senate has unveiled a revised version of Trump’s $4.2 trillion tax reform bill, with voting procedures set to begin imminently as the July 4th deadline approaches. The new draft reflects negotiated compromises within the party, addressing disagreements on the scope of social security cuts, such as Medicaid, and the timing of phasing out Biden-era renewable energy tax credits.

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A key provision includes a temporary agreement with House Republicans to raise the state and local tax (SALT) deduction limit from $10,000 to $40,000 for five years. Senate leaders aim to initiate voting procedures by Saturday noon, with a final vote potentially taking place by Sunday morning. The aim is to complete the legislative process ahead of Trump’s Independence Day deadline.

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