Latest news with #SALT
Straits Times
3 hours ago
- Business
- Straits Times
US Senate unveils new Trump tax draft with plans to vote soon
This is as the US moves closer to a vote on the tax cut package with a July 4 deadline set by President Donald Trump. PHOTO: REUTERS US Senate unveils new Trump tax draft with plans to vote soon WASHINGTON - Senate Republicans unveiled a new version of their US$4.2 trillion (S$5.1 trillion) tax cut package, moving closer to a vote as they near a July 4 deadline set by President Donald Trump. The new draft reflects compromises among warring factions of the Senate GOP which has been divided over how much to cut safety-net programs such as Medicaid and how rapidly to phase out of renewable energy tax credits enacted under the Biden administration. A tentative deal with House Republicans to increase the state and local tax deduction is included. The bill would raise the SALT deduction cap from US$10,000 to US$40,000 for five years before snapping back to the US$10,000 level. The new cap applies to 2025 and rises 1 per cent in subsequent years. Republicans plan to start voting on the tax bill on June 28 with final votes coming as soon as early on June 29. Party leaders plan to bring House members back to Washington early next week for what they hope will be final approval of the measure in time for Trump's Independence Day deadline. It is not yet clear if the 50 Senate Republicans needed to pass the bill are all on board. The bill can be further altered on the Senate floor to secure the votes if needed. The House could make more changes if Speaker Mike Johnson has trouble corralling votes for the measure. To win over moderate Republicans, the bill would create a new US$25 billion rural hospital fund aimed at helping some Medicaid providers avoid cuts. Republican Senator Susan Collins of Maine, however, had demanded a US$100 billion fund. Moderate Republicans also won a delay from 2031 to 2032 for when a new 3.5 per cent cap on state Medicaid provider taxes takes effect. The provider tax is a gimmick by which states boost their federal Medicaid reimbursement rates and many states have come to rely on the practice. Another change in the measure is that a tax credit for hydrogen production wouldn't be phased out until 2028 for projects that begin construction before then. Previous version ended the credit after 2025. The measure would avert a US payment default as soon as August by raising the debt ceiling by US$5 trillion. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Axios
13 hours ago
- Business
- Axios
Senate plunges into do-or-die moment on "big, beautiful bill"
Senate Majority Leader John Thune is about to make GOP holdouts decide if they're really willing to torpedo President Trump's signature legislative agenda ahead of his July 4 deadline. Why it matters: Each hard-fought deal at this point risks blowing up another. But leaders are getting ready to force holdouts' hands and get this thing done. The Senate wants to start voting on the " big, beautiful bill" at noon Saturday, said Sen. John Kennedy (R-La.). It had hoped to vote on Friday. "We'll find out tomorrow," Thune told reporters when asked if he has the votes to start the debate on the bill. Complicating the whip count: As of Friday evening, the Senate parliamentarian was still making rulings. "It's clear we're not going to have unanimity on some of this," Kennedy said. "That's why God made votes." Zoom in: The Senate also has yet to agree on a tentative deal with the House GOP's SALT crew, which was presented to them at lunch on Friday. There were some skeptics, notably Sen. Eric Schmitt (R-Mo.), per two attendees. There are lingering concerns about Medicaid. Senators leaving lunch told reporters that they plan to delay lowering the provider taxes. Sen. Thom Tillis (R-N.C.) told us he did not see any substantial changes to Medicaid that would alter his analysis of the impact on his state. Asked about a vote tomorrow, he said, "It doesn't matter to me, if the baseline doesn't change, I'm a no." What to watch: There also is a growing possibility of floor fights — with senators seeking to strike unpopular parts of the bill via amendments.
Yahoo
14 hours ago
- Business
- Yahoo
A Big Win: Rep. Lawler on Tentative SALT Deal Reached
Representative Mike Lawler (R) NY shares his thoughts on tentatively reaching a deal on SALT with his Republican colleagues in the Senate. Rep. Lawler talks about how this deal could benefit additional states outside of New York, New Jersey, and California & the potential hurdle the House is facing as the self-imposed tax bill deadline looms. Representative Lawler speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power."
Bloomberg
15 hours ago
- Business
- Bloomberg
A Big Win: Rep. Lawler on Tentative SALT Deal Reached
Representative Mike Lawler (R) NY shares his thoughts on tentatively reaching a deal on SALT with his Republican colleagues in the Senate. Rep. Lawler talks about how this deal could benefit additional states outside of New York, New Jersey, and California & the potential hurdle the House is facing as the self-imposed tax bill deadline looms. Representative Lawler speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)
Yahoo
16 hours ago
- Business
- Yahoo
Trump Speeds Up Tax Bill Deadline as Tentative SALT Deal Reached
(Bloomberg) -- President Donald Trump amped up pressure on Congress to speed passage of his tax-cut bill as Republicans reached a tentative deal on the state and local tax deduction, one of the key sticking points in the negotiations. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Mapping the Architectural History of New York's Chinatown Sprawl Is Still Not the Answer 'The House of Representatives must be ready to send it to my desk before July 4th — We can get it done,' Trump said on Truth Social Friday. The new deadline — before July 4 — is somewhat of a reversal for the president who, hours earlier told reporters that it wouldn't be the 'end-all' if Congress missed the self-imposed Independence Day goal. On Friday afternoon, the tentative SALT deal suggested that Republicans may have momentum on their side. The agreement involved raising the limit on the state and local tax deduction to $40,000 a year for a five-year period, Senator John Hoeven told reporters. New York Republican Mike Lawler, a key negotiator, later confirmed the deal and told Bloomberg TV he believes it 'will pass.' The new cap would provide complete SALT relief to more than 90% of his constituents, he estimated. Senators said the tentative plan is to begin voting on the bill Saturday midday. It wasn't immediately clear whether SALT Caucus member Nick LaLota of New York would back the deal. His vote could end up being needed due to the narrow Republican majority in the House. GOP lawmakers from New York, New Jersey and California have pressed to preserve a deal included in the House bill that increased the deduction cap to $40,000, up from the $10,000 in current law, for 10 years. The original Senate draft kept the write-off at $10,000. The latest deal retains a House proposal to phase out the deduction for taxpayers with at least $500,000 in income, a person familiar said, who requested anonymity to discuss private conversations. Republicans also plan to drop new limits they had sought on pass-through businesses' deductions of state and local tax taxes, the person said. Until now, some business owners in most states haven't actually needed to abide by the SALT cap that applies to everyone else, thanks to legal workarounds approved by legislatures in New York, New Jersey, Connecticut, California and dozens of other states. The House version of Trump's massive tax and spending package put curbs on those workarounds. The SALT provision has been one of several holdups for the Trump tax bill in the Senate. Senate Republican Leader John Thune is also trying to navigate competing demands from conservatives and moderates on social safety net cuts and the elimination of clean energy tax credits. He will need to resolve most of the disputes to secure the votes he needs to pass the bill. The massive tax and spending package is the legislative centerpiece of Trump's economic agenda. The Senate version makes permanent individual and business tax breaks enacted in 2017, while adding temporary new breaks for tipped and overtime workers, seniors and car-buyers. The bill would add hundreds of billions of dollars in new spending for the military, border patrol and immigration enforcement. To partly pay for the revenue losses, the bill reduces spending on Medicaid health insurance for the poor and disabled, food assistance for low-income Americans and financial aid to college students. The measure would also avert a US payment default as soon as August by raising the debt ceiling by $5 trillion. --With assistance from Kailey Leinz and Joe Mathieu. (Updates with Lawler in fifth paragraph) America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Apple Test-Drives Big-Screen Movie Strategy With F1 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
