The House narrowly passed its version of the legislation last month. Here’s what’s in the Senate’s bill.
2017 tax cuts: The bill makes many of the core elements of their 2017 tax cuts permanent but scales back additional cuts from what the House passed. The Senate bill locks in existing federal tax brackets, boosts the standard deduction and maintains the termination of personal exemptions — all without sunsets. In contrast with the House version, the bill sets a lower increase for the child tax credit, raising it to $2,200 per child as opposed to the House’s $2,500.
Taxes on tips: The bill creates new deductions for taxes on tips, overtime pay and car loan interest — a priority of Trump’s that he campaigned on — but doesn’t make them fully deductible. Tips are deductible up to $25,000 through 2028. Overtime pay is deductible up to $12,500, or $25,000 for joint filers, through 2028. Auto loan interest is deductible up to $10,000, also through 2028.
Medicaid funding: Senate Republicans are taking a bigger swing at Medicaid in their version of the bill. The legislation would effectively cap provider taxes at 3.5 percent by 2031, down from the current 6 percent, but only for the states that expanded Medicaid under the Affordable Care Act.
The cap would be phased in by lowering it 0.5 percent annually, starting in 2027. Nonexpansion states would also be prohibited from imposing new taxes, but as was true in the House-passed version, their rates would be frozen at current levels. The lower cap would not apply to nursing homes or intermediate care facilities.
Check out the rest from The Hill here.
