Trump Inks $600 Billion Economic Partnership Deal with Saudi Arabia.

PULSE POINTS:

❓What Happened:  House Republicans have unveiled the sweeping tax provisions that will be included in their budget reconciliation legislation, dubbed the “One Big Beautiful Bill.” The measures will permanently enshrine key elements of the 2017 Trump tax cuts while adding new deductions for tips, overtime, car loan interest, school choice scholarship contributions, and more.

👥 Who’s Involved: The amendment was filed by Rep. Jason Smith (R-MO), chairman of the House Ways and Means Committee. Many of the provisions reflect President Donald J. Trump’s 2024 campaign pledges, providing relief for American workers.

📍 Where & When: The tax provisions were filed on Monday, May 12, 2025.

💬 Key Quote: “This week the Republicans are meeting in the Tax, Energy, and Agriculture Committees on major pieces of ‘THE ONE, BIG, BEAUTIFUL BILL’,” President Trump wrote in a post on Truth Social on Monday, adding: “Republicans need to UNIFY behind their Highly Respected Chairmen, Jason Smith, Brett Guthrie, and Glenn ‘GT’ Thompson. Remember, these are men that truly strive to do what is RIGHT for America.”

⚠️ Impact: The bill enacts a number of President Trump’s 2024 campaign promises, providing tax relief for American workers through no tax on tips and no tax on overtime provisions. Additionally, other tax changes aim to boost domestic industry and make permanent Trump’s 2017 tax cuts.

IN FULL:

House Republicans have unveiled the tax portion of what President Donald J. Trump has dubbed the “Big, Beautiful Bill“—budget reconciliation legislation that will implement much of the America First leader’s White House agenda. Filed by House Ways and Means Committee Chairman Jason Smith (R-MO) as an amendment to the overall budget bill, the legislative measure contains provisions making the 2017 Trump tax cuts permanent, and expands them with a bevy of new deductions aimed at workers, families, car buyers, and donors to private education initiatives.

“This week the Republicans are meeting in the Tax, Energy, and Agriculture Committees on major pieces of ‘THE ONE, BIG, BEAUTIFUL BILL’,” President Trump wrote in a post on Truth Social earlier on Monday, adding: “Republicans need to UNIFY behind their Highly Respected Chairmen, Jason Smith, Brett Guthrie, and Glenn ‘GT’ Thompson. Remember, these are men that truly strive to do what is RIGHT for America.”

Critically, the Ways and Means amendment that will be incorporated into the larger reconciliation bill begins by eliminating the 2025 sunset provisions in the 2017 Tax Cuts and Jobs Act (TCJA). Under the new framework, lower individual tax rates would remain in place permanently, and the increased standard deduction would be retained and boosted through 2028. The Child Tax Credit would increase from $2,000 to $2,500 between 2025 and 2028, then remain indexed to inflation thereafter. Eligibility for the credit would require each child to possess a valid Social Security Number—a change likely aimed at curbing fraudulent filings involving non-citizens.

The bill also introduces a new set of work-based incentives. Cash tips would become non-taxable in qualifying service industries. Overtime wages would be newly deductible for workers through 2028. Senior citizens would receive an additional $4,000 standard deduction, phased out at higher income levels. Another provision allows car buyers to deduct loan interest payments, provided the vehicle was assembled in the United States.

Education reforms also receive a significant boost. The bill offers a federal tax credit of up to $5,000 for donations to approved Scholarship Granting Organizations that support private and religious schooling. A nationwide cap of $5 billion would apply. Five hundred and twenty-nine savings plans would also be expanded to include homeschool expenses, tutors, special education therapies, and educational materials. The adoption tax credit is enhanced and made partially refundable, with new language recognizing tribal government input in determining children with special needs.

Notably, the estate tax exemption would rise to $15 million per person, effective permanently, providing additional protections to family farms. The Alternative Minimum Tax (AMT) thresholds would be extended indefinitely. High-income earners would face a return of the so-called Pease limitation on itemized deductions, kicking in on incomes over $400,000.

Overall, the tax provisions reflect President Trump’s America First agenda, rewarding work, family formation, religious schooling, and domestic manufacturing. The Ways and Means Committee amendment’s text is 389 pages long, though the final full reconciliation bill is expected to be far longer.

While House and Senate Democrats have already expressed their opposition to the “Big, Beautiful Bill,” under the rules of the budget reconciliation process, the legislation only requires a majority in each chamber of Congress for passage. Additionally, a budget bill moved under the reconciliation process is not subject to Senate filibuster rules, meaning Republicans will not need to reach the 60-vote threshold to invoke cloture.

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