For more coverage and political analysis, register for here the agreement, our weekly policy newsletter, here.
The “One Big Beautiful Bill Act” (say “obbba”) is President Donald Trump Article of the signature agenda at the congress.
This will affect the daily life of tens of millions of Americans. It is a massive project, with potentially tax reductions, spending reductions and additions to the national debt of American history.
WATCH: Can Trump’s “big and beautiful bill” cross the Senate?
This week, we have a new critical development in which to dive: the project of the Senate of the Finance Committee on the way in which he wants to manage the tax reductions and the discounts of Medicaid.
(For the most adventurous of us, the 549 pages Can be found here.))
Overview
- Tax reductions. The Senate project would add and lengthen certain tax reductions, both for businesses and individuals.
- Green energy cuts. It would slightly delay the elimination of tax credits for solar and wind energy. The Senate project would push back back backs for nuclear, geothermal energy and much greater hydroelectricity.
- Medicaid cuts. This would reduce Medicaid more than the House bill.
Ok, let’s go a little further.
A close -up of the words “One Big Beautiful Bill Act” printed on the agenda of the hearing of a committee of the rules of the Chamber in May on the plan of President Donald Trump for in -depth tax reductions. Photo by Nathan Howard / Reuters
Some tax details
- Individual tax rate. The Senate and the Republicans of the Chamber are synchronized on this subject. They would make current tax rates permanent. Without action, almost all individuals will see an increase in tax.
- Standard deductions. The Senate project would give most adults greater tax deduction from the start. Without extending Trump’s tax cuts in 2017, the standard deduction that many people take to reduce their tax burden should decrease by almost half at the end of the year. The Senate would not only keep, but would increase the deduction amounts – to $ 16,000 for individuals and $ 32,000 for married couples jointly.
- Children’s tax credit. The current $ 2,000 tax credit per child is set to drop to $ 1,000 at the end of the year. The Senate would increase credit to $ 2,200 permanently. The house would increase the credit to $ 2,500, but only until 2028.
Green energy
- An oblique bar with green energy funds. The Chamber and the Senate both move to eliminate the main tax credits for wind and energy 2022 Law on inflation reduction.
- But the Senate gives a slightly longer elimination, allowing a partial tax credit for projects that start construction next year or in 2027. The room would end the credit almost as soon as the invoice is promulgated.
Medicaid
- Targeting the “supplier” tax. This is the most notable cup that the Senate project adds. Right now, States Use an escape To help them get more federal dollars for Medicaid. They tax hospitals and doctors (a “service tax”) and spend this money with hospitals and doctors. The more states spend, the more the federal government will correspond.
- A reduction in this tax. For states that have expanded Medicaid, the Senate project would gradually reduce the maximum amount of service providers, which is currently 6%, until it reaches a 3.5% threshold by 2031. Many Republicans love this reform, but others say that this would considerably reduce the funds available for Medicaid. The House bill would block the new taxes of providers.
- Work requirements. The room and the Senate would add a work requirement of 80 hours a month for “valid” adults or those who have not disabled, on Medicaid. The Senate brings a significant change: exempting parents of children under the age of 14 from the requirement. (There is currently No federal work requirements for Medicaid.))
What now?
This version of the Senate knows certain initial turbulence.
Four Republican senators openly questioned the Medicaid cuts in the Bill of the Chamber: Meaning. Lisa Murkowski of Alaska, Jerry Moran from Kansas, Susan Collins from Maine and Josh Hawley of Missouri.
And now, the senator of Virginia-Western Jim Justice told a journalist from Semaor Whether he wants the Medicaid section of the Senate to return to the version of the Chamber, which would prohibit new or increased service providers.
Hawley told me on Tuesday that the reduction in the supplier tax was a total surprise for him and the others. Trump, too, was surprised when he was alerted to change and his ramifications for rural hospitals, said Hawley.
It is not unusual. Large invoices often have big problems when they are released.
But. The Republicans are trying to obtain this historic legislation by the Congress – not only the Senate – in the next two weeks.
At this stage of the process, large similar bills (think of the affordable care law) generally take months to spend the Senate again and return to the Chamber.
Republicans are determined to adopt a version of the bill, but more and more my sources say that the question is “not so, but when”.