Senate Republicans Push for Big Changes in Spending and Tax Bill

Senate Republicans have introduced a revised spending and tax cut bill that includes many of President Trump's domestic priorities. This bill, which is set to be voted on soon, aims to extend Trump's 2017 tax cuts and increase funding for border security, defense, and energy production. However, there are significant differences between the Senate and House versions, particularly in how to pay for these priorities. The Senate bill proposes a higher increase to the debt limit and includes major changes to Medicaid, the health insurance program for low-income Americans. It also has modifications based on the advice of the Senate Parliamentarian, who ensures that the bill follows chamber rules. The bill is expected to face opposition from different factions within the Republican party, especially those who want to reduce the deficit and those who oppose cuts to social safety net programs. One of the biggest changes in the Senate bill is the expansion of tax incentives. It includes temporary changes that allow Americans to deduct up to $25, 000 for tip wages and $12, 500 for overtime pay through 2028. The Senate bill also increases the child tax credit from $2, 000 to $2, 200 per child and adjusts the amount for inflation after 2025. Additionally, the Senate text would permanently expand the standard deduction, marking a key difference from the House bill, which temporarily expands it through 2028. The Senate is also proposing to raise the nation's debt limit by $5 trillion, a sizable increase compared to the House bill, which agreed to $4 trillion. Lifting the debt limit is crucial to avoid a government default, which economists say would be catastrophic for the U. S. and the global financial system. Both the Senate and House bills outline reforms for the Supplemental Nutrition Assistance Program (SNAP), which provides food aid to over 40 million low-income Americans. The Senate bill includes expanded work requirements for "able-bodied adults" up to age 64 and requires states to take on a greater share of the cost of providing food assistance. The state and local tax deduction (SALT) has been a contentious issue during negotiations. The Senate plan would temporarily lift the cap to $40, 000 for married couples with incomes up to $500, 000, but this provision would expire after 2028. This is an effort to support Republican lawmakers from high-tax states like California and New York through the upcoming elections. The Senate bill also includes several proposed changes to Medicaid, which has been one of the most divisive issues throughout negotiations. The Senate plan would require able-bodied adults to work 80 hours per month until age 65 to qualify for benefits. It would also cap and gradually reduce the tax states can impose on Medicaid providers, which has raised concerns among several GOP senators. Despite these changes, the Senate bill calls for $4 trillion in tax cuts, which is slightly higher than the $3. 8 trillion proposed in the House. This move would extend Trump's 2017 tax cuts, which are set to expire at the end of the year. The bill also allocates $46. 5 billion toward completing Trump's border wall and includes new or increased fees for immigration services. The Senate proposal also allocates $500 million to the Broadband, Equity, Access, and Deployment Program, which is focused on increasing broadband access for Americans. However, it requires that states only receive this funding if they do not regulate A. I. for 10 years.