Summary
On July 3, the U.S. House of Representatives approved a major tax cut and spending plan backed by President Donald Trump, which includes tax cuts and increased spending for defense and border security, while reducing social welfare programs. The bill will make earlier tax cuts permanent and add new ones, but it will reduce funding for Medicaid and food assistance programs. Trump is expected to officially sign this bill into law on July 4.
Key Facts
- The U.S. House of Representatives passed a tax and spending bill connected to President Trump.
- The bill makes permanent certain tax cuts from Trump's first term and includes new tax reductions.
- It raises the cap on State and Local Taxes deductions from $10,000 to $40,000 for five years.
- Taxpayers can now deduct income from tips, overtime, and interest on U.S.-made car loans.
- The estate tax exemption will increase to $15 million for individuals, $30 million for couples.
- About $4.5 trillion in tax cuts are part of the bill.
- The bill plans to cut spending on Medicaid and food assistance by over $1 trillion.
- Around 17 million people could lose Medicaid coverage, and 4.7 million may lose food stamps.
- The bill allocates roughly $350 billion for border and national security.
