The House Ways and Means Committee on Wednesday morning approved the tax package portion of Republicans' reconciliation legislation.
Following a marathon hearing, approval came 26-19 along party lines after Democrats attempted to rewrite the plan with such things as blocking tax cuts for top earners and preserving green energy incentives.
The bill now moves on to the chamber's Budget Committee, which will combine it with spending-cut legislation from other committees, Politico reported. That will lead to a floor vote.
"[check emoji] PASSED: The House Ways & Means Committee just passed the One, Big, Beautiful Bill, delivering on President [Donald] Trump's policies of tax relief for American workers, families, farmers, and small businesses," the committee posted Wednesday morning on X.
The committee expounded about the bill on its website.
"The One, Big, Beautiful Bill, makes the successful 2017 Trump tax cuts permanent, provides additional tax relief for working families and small businesses, rewards investment and manufacturing in America, and holds woke elites accountable while ending tax giveaways to the wealthy, China, and illegal immigrants," the committee said.
"These provisions will provide small businesses, manufacturers, and farmers the certainty and confidence to fuel a second Trump economic boom through new investment and job creation. Families and workers will save money from lower tax rates, a larger Child Tax Credit, and President Trump's tax priorities for hardworking Americans: tax relief for seniors, no tax on tips, no tax on overtime pay, and no tax on auto loan interest for American-made cars."
The bill would permanently extend the lower individual tax rates enacted under Trump in 2017, including a lower 37% rate for the highest earners, Bloomberg reported.
It also fulfills Trump's 2024 tax campaign promises — i.e., eliminating taxes on tips and overtime pay and creating new deductions for seniors and car buyers — through 2028.
Some issues remain, however, before the GOP can assure passage of the legislation.
Bloomberg reported lawmakers continued to meet over the state and local tax (SALT) deduction. Members from blue states wants a higher limit tax deductions than the $30,000, which is up from the current $10,000.
Plus, the tax provisions are projected to add $3.8 trillion to deficits over the next decade, according to the nonpartisan Joint Committee on Taxation. Spending cuts approved by other House committees do not come close to offsetting those reductions.
House Republicans aim to pass their reconciliation bill and send it to the Senate by Memorial Day.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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