Trump’s ‘big, beautiful bill’ to include expanded child tax credit
House Republicans have made significant progress in advancing President Donald Trump’s tax agenda with the release of a portion of the legislation late on Friday evening. The bill includes key provisions such as an increased child tax credit (CTC) and a higher threshold for estate tax liability, commonly referred to as the “death tax.” Additionally, the legislation aims to make Trump’s 2017 Tax Cuts and Jobs Act (TCJA) permanent, which Republican leaders argue is crucial to prevent a tax increase of over 20% for millions of Americans.
One notable exclusion from the bill is the state and local tax (SALT) deduction caps, which have been a contentious issue among Republicans from different states. Another missing element is a new millionaires’ tax bracket, although there is speculation that it could be included in the final bill through amendments.
The bill is also expected to introduce new tax pledges from Trump, such as eliminating taxes on tips, overtime wages, and Social Security checks for retirees. Further amendments are anticipated to be added in the coming days, with the full legislation set to advance through the House’s tax-writing panel, the Ways & Means Committee.
The release of the legislation marks a significant step forward for House GOP leaders, who had faced challenges in meeting their initial deadline for delivering a bill to Trump’s desk. Despite the progress, contentious issues like SALT deduction caps and a millionaire’s tax hike continue to be points of discussion among lawmakers.
House Republicans hold a narrow three-vote margin, which underscores the importance of unity within the party to pass the legislation without Democratic support. The use of the budget-reconciliation process is being considered to expedite the passage of the bill, allowing for a simple majority threshold in both the House and Senate.
Trump has urged Republicans to leverage reconciliation to address key priorities like border security, immigration, taxes, defense, energy, and raising the debt ceiling. Both the House and Senate have passed frameworks to set the stage for the bill, and now committees on both sides are tasked with crafting policies aligned with the framework.
Key provisions in the latest portion of the bill include an increase in the maximum CTC to $2,500, a boost in the deduction for qualified business income, and raising the estate tax exemption level to $15 million. Republicans have criticized the estate tax as burdensome for families, particularly small businesses, while supporters argue it affects a limited number of estates.
House Ways & Means Chairman Jason Smith emphasized the pro-family and pro-worker nature of the tax provisions, highlighting the economic benefits they bring. The legislation reflects Republicans’ commitment to delivering for the American people and promoting economic growth.
Elizabeth Elkind, a politics reporter for Fox News Digital, covers the House of Representatives and can be followed on Twitter at @liz_elkind for updates and tips.
