No millionaire tax hike in Trump’s ‘big, beautiful bill’
House Republicans have made a significant shift in their plans for tax legislation, as they have decided to abandon the idea of a new millionaire’s tax hike to fund other priorities in President Donald Trump’s proposed bill. The Ways & Means Committee, the House’s tax-writing panel, unveiled a nearly 400-page bill on Monday that focuses on making President Trump’s 2017 Tax Cuts and Jobs Act (TCJA) permanent, along with introducing several new tax priorities.
One of the key provisions in the bill is the elimination of taxes on tipped and overtime wages, achieved through new tax deductions. Additionally, the legislation includes a temporary increase in the standard tax deduction for seniors to fulfill President Trump’s promise to reduce taxes on seniors’ Social Security. This increase will be in effect from the end of last year through the beginning of 2029.
To address the impending debt limit issue, the bill proposes raising the limit by $4 trillion at the request of President Trump. This move aims to prevent a national credit default by ensuring that the U.S. has enough cash to pay its debts, especially as the country approaches a critical financial deadline this summer.
Interestingly, the bill does not include a previously suggested proposal to create a new tax bracket for individuals earning $2.5 million or more annually, which would have taxed them at a rate of 39.6%. This proposal faced strong opposition from conservative groups like Americans for Prosperity and the Heritage Foundation, as well as prominent Republican figures such as former Speaker Newt Gingrich and ex-Vice President Mike Pence.
Several House GOP lawmakers also expressed their disapproval of the millionaire’s tax hike, prompting Republicans to seek alternative cost-saving measures in the legislation. These measures include revoking tax-exempt status from “terrorist-supporting organizations” and utilizing artificial intelligence (AI) technology to detect and eliminate improper Medicare payments.
Furthermore, the bill aims to reduce tax breaks for professional sports team owners by implementing a measure known as amortization, which limits their ability to deduct a portion of their purchase price. This change could have significant implications for team owners who have benefited from generous tax breaks in the past.
As this story continues to develop, updates will be provided. Elizabeth Elkind, a politics reporter for Fox News Digital, is at the forefront of covering the House of Representatives and will be delivering the latest updates on this legislation. For more information and tips, follow her on Twitter at @liz_elkind or reach out via email at elizabeth.elkind@fox.com.
