Latest news with #House-proposed
The Hill
17-06-2025
- Business
- The Hill
House, Senate set for clash over Trump bill
Morning Report is The Hill's a.m. newsletter. Sign up here or subscribe in the box below: Thank you for signing up! Subscribe to more newsletters here President Trump's second-term legislative agenda is experiencing a Senate GOP makeover that puts Republicans on a collision course with their House colleagues. The approach drafted by Republican members of the powerful Senate Finance Committee and introduced to colleagues during a private briefing Monday evening would raise the nation's borrowing authority to $5 trillion, higher than a House-proposed $4 trillion proposal, which deficit hawks in Congress have said could cost the narrow majority critical votes. The Senate text would also include key changes for Medicaid and green energy tax credits, and keep the cap on state and local tax (SALT) deductions at $10,000 a year — provisions that risk upsetting various Republicans in both chambers. The legislation would lower to 3.5 percent, down from the current 6 percent, by 2031 the health care provider taxes in states that expanded Medicaid, an explosive change expected to spark pushback in red states. The existing tax adjustment, used in every state but Alaska, has allowed states to increase federal funding for their programs. Critics complain it's a form of 'money laundering,' but the reduction would mean significant holes in state Medicaid budgets, and could result in lower payments to hospitals or other cuts to state budgets. And the committee's proposal would block states that previously did not expand Medicaid under the Affordable Care Act from increasing the rate of health care provider taxes as a way to hike their federal funding, The Hill's Alexander Bolton reports. Draft Senate language goes beyond House-passed language to tighten Medicaid eligibility requirements, two Republican aides said. The White House previously suggested this change could curb program 'abuse,' but would not conflict with Trump's pledge to protect federal health benefits. The Senate's approach would make permanent the 2017 corporate tax cuts Republicans enacted during Trump's first term and phase out renewable-energy tax cuts enacted under former President Biden. It also includes Trump's campaign vow to shield certain workers' tips from federal taxes. A group of moderate House Republicans from high-tax states who had secured a deal with House GOP leadership to raise the SALT deduction cap to $40,000 are seething over the Senate's proposal, The Hill's Mychael Schnell reports. (Read the Finance Committee text here). LAWMAKER SECURITY ALARM: Separately, bipartisan lawmakers want input from House and Senate leaders, the U.S. Capitol Police and the Senate sergeant-at-arms about enhanced protection for members of Congress and relatives in the aftermath of the shootings of two Minnesota state lawmakers and their spouses, which resulted in two fatalities on Saturday and shocked elected officials and the public nationwide. Senators will receive a security briefing today in the Capitol, along with a discussion about resources that would be required to protect rank-and-file lawmakers who do not currently receive around-the-clock protection. Axios: Members of Congress fear any one of them could be the target of an unanticipated attack, particularly at home in their districts and while in transit. The suspect in the Minnesota shootings, Vance Boelter, has been hit with with federal and state charges, including two counts of murder and two counts of attempted murder. Boelter allegedly researched and planned his attacks and posed as a police officer. A list of about 70 names was found in writings recovered from the suspect's vehicle, including names of elected officials. Authorities have not publicly identified a motive for the shootings. Michigan Democratic Rep. Hillary Scholten on Monday postponed a town hall event after learning her name was listed. 'Out of an abundance of caution and to not divert additional law enforcement resources away from protecting the broader public at this time, this is the responsible choice,' Scholten said in a statement. Some of Wisconsin's top Democrats were also among the politicians listed in documents recovered by authorities in Minnesota, including Sen. Tammy Baldwin and Reps. Mark Pocan and Gwen Moore, Milwaukee Journal Sentinel reported. The newspaper previously reported that 11 Wisconsin lawmakers were listed in a document recovered by police. The Hill's Niall Stanage: What we know in the aftermath of the Minnesota shootings. GOING VIRAL: Sen. Tina Smith (D-Minn.) on Monday was seen buttonholing Sen. Mike Lee (R-Utah) about his controversial social media posts over the weekend seeking to blame 'Marxist' Democrats for the shootings of state lawmakers in Minnesota. Smith after the confrontation told reporters she wanted Lee to hear from her directly 'about how painful that was and how brutal that was to see that on what was just a horrible, brutal weekend.' Smith's deputy chief of staff ripped the Utah senator at length on X for lack of 'grace' and 'compassion.' Lee declined to answer reporters' questions on Monday. Blake Burman's Smart Take is off this week and will return next week. TRUMP IS HEADING TO THE SITUATION ROOM later this morning to address the escalating conflict in the Middle East, he told reporters aboard Air Force One while returning to Washington early Tuesday. Trump left the Group of Seven (G7) summit in Alberta, Canada early to address the Israel-Iran conflict, but before departing for Washington he signed onto a statement reaffirming Israel's 'right to defend itself' and calling Iran 'the principal source of regional instability and terror.' The president initially declined to sign the group's statement, but reversed his position following discussions and changes to the initial draft, The Washington Post reports. Trump told reporters early Tuesday morning that he was considering dispatching Vice President Vance and his Middle East envoy Steve Witkoff to meet with Iranians, noting it 'depends on what happens when I get back.' 'I'm not too much in the mood to negotiate' with Iran, Trump said, according to a White House pool report. French President Emmanuel Macron told reporters that Trump indicated to fellow leaders at the G7 that an offer for an Israel-Iran ceasefire has been made. But Trump later posted on Truth Social that his early exit had 'nothing to do with' working on a ceasefire between Israel and Iran. 'Much bigger than that,' he wrote. Iran has been urgently signaling it wants an end to hostilities and to resume talks with the U.S. for a possible nuclear deal, The Wall Street Journal reports. Tehran has been sending messages to Israel and the U.S. via Arab intermediaries, adding it is in the interest of both sides to keep the violence contained, as long as Washington doesn't join the attack. Tehran's position, The Washington Post reports, is that 'we never left the negotiating table, but no negotiations while we are under fire.' While the Trump administration said Israel's initial strikes were a unilateral action, the U.S. has assisted Israel in intercepting retaliatory strikes from Iran. The administration told several Middle Eastern allies on Sunday it doesn't plan to get actively involved in the war unless Iran targets Americans. Defense Secretary Pete Hegseth announced Monday he has directed 'the deployment of additional capabilities' to the Middle East amid escalating tensions. As the administration has signaled more support for Israel, lawmakers from both parties have voiced concerns about the U.S. getting pulled into a protracted conflict. In a rare bipartisan action, Reps. Thomas Massie (R-Ky.) and Ro Khanna (D-Calif.) plan to introduce a measure that would force Trump to get congressional approval to enter the conflict. Sen. Tim Kaine (D-Va.) filed his own war powers resolution in the Senate on Monday. ▪ NBC News: How Trump went from opposing Israel's strikes on Iran to providing reluctant support. ▪ The Associated Press: Israel appeared to be expanding its air campaign on Tehran as Trump posted an ominous message warning residents of the city to evacuate. Israel is on the way to ending Iran's nuclear capabilities with its attacks, Prime Minister Benjamin Netanyahu said on Monday. He added that his country's missile strikes in the past five days set Tehran's nuclear program back a 'very, very long time.' 'It's impossible to predict, but it could be the result of our mighty action,' Netanyahu said. 'We are changing the face of the Middle East, and this could lead to far-reaching changes within Iran itself.' Netanyahu told ABC News that targeting Iran's Supreme Leader Ayatollah Ali Khamenei would end, not escalate, the ongoing conflict. Asked if Israel would target the supreme leader, Netanyahu said Israel was 'doing what we need to do.' ▪ Axios: Regime change emerges as an unstated goal of Israel's war in Iran. ▪ The New York Times: Here's why Israel's war with Iran may last weeks rather than days. ▪ NPR: Russia struck Kyiv with drones and missiles overnight, killing at least 15 in Ukraine's capital. The attacks came as Ukrainian President Volodymyr Zelensky prepared to attend the G7 summit. DNC SHAKEUP: The departure of two major union presidents from their posts at the Democratic National Committee (DNC) is raising questions about lingering internal divisions over the party's future as the party seeks to regroup in the second Trump administration. Randi Weingarten, president of the American Federation of Teachers Union (AFT), and Lee Saunders, president of the American Federation of State, County, and Municipal Employees (AFSCME), are declining to be reappointed as at-large DNC members, citing internal disagreements. 'It shows that we're not united,' said Douglas Wilson, a North Carolina-based Democratic strategist. 'Everytime we have a situation where prominent people are exiting their posts, not the party but their posts at the DNC, that becomes the narrative as opposed to what the Trump administration is doing.' Weingarten and Saunders's exits come as the DNC holds a re-do of its vice-chair elections following controversy over gun-control activist David Hogg, who stepped down from his post. Hogg faced backlash from Democrats for launching his organization, Leaders We Deserve, which would primary incumbent House Democrats in an effort to bring about generational change within the party, all while he was serving as a vice chair. Meanwhile, Hogg has ramped up his efforts. On Monday, reacting to speculation of greater U.S. involvement in the Middle East, he wrote on X: 'any Democrat who supports this war with Iran needs to be primaried.' Pennsylvania state Rep. Malcolm Kenyatta regained his position during a Saturday election, and the DNC will choose a second vice chair tonight from a candidate pool of three women. VIRGINIA PRIMARY WATCH: Democrats are counting on tonight's primaries for lieutenant governor and attorney general to act as a barometer for voter enthusiasm ahead of November's elections. Republicans already have their statewide nominees locked in, while former Rep. Abigail Spanberger (Va.) easily earned the Democratic gubernatorial nomination in April. The remaining races stand to give Democrats some insight into voter enthusiasm as they seek to maintain their narrow hold on the House of Delegates and flip the state's executive branch in the fall. The Hill's Julia Manchester has three things to watch out for tonight. ABORTION: A lower court must take a second look at a religious challenge to a New York requirement that employers provide health care plans that include abortion coverage, the Supreme Court ordered Monday. The court also agreed to consider reviving the bid of a faith-based operator of a New Jersey 'crisis pregnancy center' to block the state attorney general from investigating whether it deceived women into believing it offered abortions. ▪ NPR: The Supreme Court faces new headwinds with roughly two weeks left in the term. ▪ The Hill: Former Illinois Democratic lawmaker Michael Madigan was sentenced to more than seven years in prison following a federal corruption trial in Chicago. DEPORTATION WHIPLASH: The Department of Homeland Security on Monday told staff it was reversing guidelines from last week telling agents not to conduct immigration raids at farms, hotels and restaurants, The Washington Post reports. The decision went against Trump's calls for mass deportations, and came after lobbying from Agriculture Secretary Brooke Rollins and the farming industry to scale back raids at those locations. ▪ Politico: Trump's vow to focus mass deportations on cities led by Democrats reveals a crack in his plans to carry out a top campaign priority. ▪ The Wall Street Journal: Trump struggles to press deportations without damaging the economy. HEALTH RESEARCH: A federal judge on Monday ruled the Trump administration's canceling of federal health grants over their connections to 'gender ideology' and 'diversity, equity, and inclusion' was unlawful and void. U.S. District Court Judge William Young, a Reagan appointee, ruled on Monday that targeting research funded by the National Institutes of Health (NIH) based on certain topics was unlawful and arbitrary. In February, the NIH issued directives terminating grants relating to LGBTQ issues; gender identity; and diversity, equity and inclusion (DEI). The government has now been directed to immediately make the funds available to grant recipients again. And finally … On this day in 1972, Washington, D.C., police apprehended five burglars at the DNC office in the Watergate complex, setting in motion a scandal that engulfed former President Richard Nixon and key White House lieutenants following anonymously sourced, prize-winning investigative reporting; federal probes; and live, televised congressional hearings that riveted the nation. Nixon resigned effective Aug. 9, 1974, to avoid what GOP senators warned him would be his impeachment. Thanks for reading! Check out more newsletters from The Hill at See you tomorrow!
NBC News
22-05-2025
- Business
- NBC News
House Republican tax bill passes 'SALT' deduction cap of $40,000. Here's who benefits
House lawmakers on Thursday morning passed changes for the federal deduction for state and local taxes, known as SALT, as part of President Donald Trump 's tax package. Enacted via the Tax Cuts and Jobs Act, or TCJA, of 2017, there's currently a $10,000 limit on the SALT deduction, and raising that cap has been a priority for certain House lawmakers in high-tax states like New York, New Jersey and California. Filers must itemize deductions to claim the tax break for SALT. If the House provision is enacted, the SALT cap would rise to $40,000, up from $30,000 in the previous plan, and phases out over $500,000, according to revised language released by the House Rules Committee. The provision would go into effect in 2025. The SALT cap and income phaseout would increase annually by 1% from 2026 through 2033, according to the text. The revised text would also reduce itemized deductions for certain taxpayers in the 37% income tax bracket, which could lower the benefit of the higher SALT cap. For 2025, the top rate of 37% applies to individuals with taxable income above $626,350, and married couples filing jointly earning $751,600 or more. However, the House proposal for changes to the SALT deduction could still face pushback in the Senate. Before TCJA, the SALT deduction was unlimited, but the so-called alternative minimum tax reduced the benefit for some higher earners. How the SALT deduction works When filing taxes, you pick the greater of the standard deduction or your itemized deductions, including SALT capped at $10,000, medical expenses above 7.5% of your adjusted gross income, charitable gifts and others. Starting in 2018, the Tax Cuts and Jobs Act doubled the standard deduction, and it adjusts for inflation yearly. For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. These could increase under the House-proposed tax bill. Under the current thresholds, the vast majority of filers — roughly 90%, according to the latest IRS data — use the standard deduction and don't benefit from itemized tax breaks. Who benefits from the higher SALT cap 'Any changes to lift the cap would primarily benefit higher earners,' Garrett Watson, director of policy analysis at the Tax Foundation, wrote in an analysis on Tuesday. With an income phaseout over $400,000, the top 20% of taxpayers 'would be the only group to meaningfully benefit,' Watson wrote. But members of the so-called SALT Caucus contend the deduction limit is a middle-class issue in their districts. Rep. Josh Gottheimer, D-N.J., co-chair of the SALT Caucus, told CNBC's 'The Exchange' on Tuesday that a full repeal of the $10,000 SALT deduction limit would be a 'huge tax cut and benefit for middle-class families around the country.' Weekly advice on managing your money SIGN UP NOW Get this delivered to your inbox, and more info about about our products and signing up for newsletters, you are agreeing to our Terms of Use and Privacy nowVIDEO04:03Rep. Josh Gottheimer on SALT: 'Red moocher states' expect the Northeastern U.S. to pay for them
CNBC
22-05-2025
- Business
- CNBC
House Republican tax bill passes 'SALT' deduction cap of $40,000. Here's who benefits
House lawmakers on Thursday morning passed changes for the federal deduction for state and local taxes, known as SALT, as part of President Donald Trump's tax package. Enacted via the Tax Cuts and Jobs Act, or TCJA, of 2017, there's currently a $10,000 limit on the SALT deduction, and raising that cap has been a priority for certain House lawmakers in high-tax states like New York, New Jersey and California. Filers must itemize deductions to claim the tax break for SALT. If the House provision is enacted, the SALT cap would rise to $40,000, up from $30,000 in the previous plan, and phases out over $500,000, according to revised language released by the House Rules Committee. The provision would go into effect in 2025. The SALT cap and income phaseout would increase annually by 1% from 2026 through 2033, according to the text. More from Personal Finance:Senate passed a surprise 'no tax on tips' bill. What it could mean GOP aims to axe EV, green tax credits. Act 'now' to claim, experts sayTrump tariffs create the 'perfect storm' for financial scams The revised text would also reduce itemized deductions for certain taxpayers in the 37% income tax bracket, which could reduce the benefit of the higher SALT cap. For 2025, the top rate of 37% applies to individuals with taxable income above $626,350, and married couples filing jointly earning $751,600 or more. However, the House proposal for changes to the SALT deduction could still face pushback in the Senate. When filing taxes, you pick the greater of the standard deduction or your itemized deductions, including SALT capped at $10,000, medical expenses above 7.5% of your adjusted gross income, charitable gifts and others. Starting in 2018, the Tax Cuts and Jobs Act doubled the standard deduction, and it adjusts for inflation yearly. For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. These could increase under the House-proposed tax bill. Under the current thresholds, the vast majority of filers — roughly 90%, according to the latest IRS data — use the standard deduction and don't benefit from itemized tax breaks. "Any changes to lift the cap would primarily benefit higher earners," Garrett Watson, director of policy analysis at the Tax Foundation, wrote in an analysis on Tuesday. With an income phaseout over $400,000, the top 20% of taxpayers "would be the only group to meaningfully benefit," Watson wrote. But members of the so-called "SALT Caucus" argue the SALT deduction limit is a middle-class issue in their districts. Rep. Josh Gottheimer, D-NJ., co-chair of the SALT Caucus, told CNBC's "The Exchange" on Tuesday that a full repeal of the $10,000 SALT deduction limit would be a "huge tax cut and benefit for middle-class families around the country."
CNBC
15-05-2025
- Business
- CNBC
House Republican bill calls for bigger child tax credit. Here's who could benefit
House Republicans have moved closer to passing President Donald Trump's spending package, which could include a bigger child tax credit. The House Ways and Means Committee, which oversees taxes, passed its portion of the legislation on Wednesday. While the tax plan could see a full House vote as early as next week, changes could still happen in the Senate. However, the House-proposed child tax credit boost wouldn't provide relief to the lowest-earning families, according to some policy experts. More from Personal Finance:House Republicans advance Trump's tax bill — but 'SALT' deduction still undecidedMedicaid work requirements kick hardworking people off health coverage: SenatorHouse GOP tax bill calls for 'SALT' deduction cap of $30,000 for most taxpayers The Tax Cuts and Jobs Act, or TCJA, of 2017, temporarily boosted the maximum child tax credit to $2,000 from $1,000, an increase that will expire after 2025 without action from Congress. If enacted, the House bill would make the $2,000 credit permanent and raise the cap to $2,500 from 2025 through 2028. After 2028, the credit's highest value would revert to $2,000, and be indexed for inflation. However, the plan does "nothing for the 17 million children that are left out of the current $2,000 credit," said Kris Cox, director of federal tax policy with the Center on Budget and Policy Priorities' federal fiscal policy division. Typically, very low-income families with kids don't owe federal taxes, which means they can't claim the full child tax credit. Plus, under the House proposal, both parents must have a Social Security number if filing jointly and claiming the tax break for an eligible child. "This bill is taking the child tax credit away from 4.5 million children who are U.S. citizens or lawfully present," Cox said. For 2025, the child tax credit is worth up to $2,000 per qualifying child under age 17 with a valid Social Security number. Up to $1,700 is "refundable" for 2025, which delivers a maximum of $1,700 once the credit exceeds taxes owed. After your first $2,500 of earnings, the child tax credit value is 15% of adjusted gross income, or AGI, until the tax break reaches that peak of $2,000 per child. The tax break starts to phase out once AGI exceeds $400,000 for married couples filing together or $200,000 for all other taxpayers. "Almost everyone gets it," but middle-income families currently see the biggest benefit, said Elaine Maag, senior fellow in the Urban-Brookings Tax Policy Center. A bipartisan House bill passed in February 2024 aimed to expand access to the child tax credit and retroactively boosted the refundable portion for 2023, which would have impacted families during the 2024 filing season. The bill failed in the Senate in August, but Republicans expressed interest in revisiting the issue. At the time of the vote, Sen. Mike Crapo, R-Idaho, described it as a "blatant attempt to score political points." Crapo, who is now chairman of the Senate Finance Committee, said in August that Senate Republicans have concerns about the policy, but are willing to negotiate a "child tax credit solution that a majority of Republicans can support." Although House Republicans previously supported the expansion for lower-earners, the current plan "shifts directions and focuses the benefits on middle and high-income families," Maag said.
Newsweek
14-05-2025
- Politics
- Newsweek
Donald Trump Won't Sign His Own Bill, Josh Hawley Says
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Republican Senator Josh Hawley of Missouri said President Donald Trump wouldn't even sign his own "big, beautiful bill" as it stands due to GOP House-proposed reductions to Medicaid. Hawley told CNN's Manu Raju on Wednesday, "This bill is not gonna become law in its current form, not least because President Trump won't sign it. I've talked to him about this personally multiple times. He has been crystal clear — no Medicaid benefit cuts." Hawley: "This bill is not gonna become law in its current form, not least because President Trump won't sign it. I've talked to him about this personally multiple times. He has been crystal clear -- no Medicaid benefit cuts." — Aaron Rupar (@atrupar) May 14, 2025 This is a developing news story and will be updated as more information is available.
