The main problems and who can benefit from it

According to the political experts, there are important questions to be observed, according to the political experts.

The House Ways and Means Committee, which monitors taxes, published a preliminary division of his part of the invoice on Friday evening. However, the draft law could change significantly before the final vote. The full committee will discuss and advance this legislation on Tuesday.

With control over the White House and both congress chambers, the Republican legislators can adopt Trump's package without democratic support through a process as “reconciliation”, which deals with the Senate's filibuster with a simple majority.

However, reconciliation includes several steps, and the suggestions must fit into a limited budget framework. This could be difficult in the face of competing priorities, say experts.

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“The narrow [Republican] The majority in the house will make this process very difficult “, since a handful of votes can block the law, said Alex Muresianu, Senior Policy Analyst at Tax Foundation.

In addition, some legislators want a “more responsible package”, which, according to Shai Akabas, Vice President of Economic Policy for the cross -party political center that could have an impact on individual provisions.

Since the negotiations are continued, you will find some important tax suggestions here that could affect millions of Americans.

The provisional house and medium -sample contains some temporary and permanent improvements about the TCJA. These include boosts for the standard deduction, the tax credit for children, tax increases, inflation adjustments, the exemption of estate tax and the deduction deduction.

Some legislators also urge larger tax benefits than the tax benefits currently offered via the TCJA provisions.

“The tax credit for children is one that we observe very closely,” said Akabas. “There is a lot of cross -party agreement to receive this and hopefully expand this.”

TCJA temporarily increased the maximum tax credit for children to $ 2,000 from $ 1,000 per child under the age of 17 and increased the authorization. These changes are planned after 2025 sunset.

The house in February 2024 passed a cross -party bill to expand the tax credit for children, which would have increased access and reimbursement. The draft law did not clear the Senate, but the Republicans expressed interest in rethinking the problem.

The early houseways and the text suggests to expand the maximum tax credit for children to $ 2,500 per child for four years from 2025.

Another TCJA determination – the limit for the deduction of 10,000 US dollars for state and local taxes, known as “Salt” – was added to the legislation of 2017 to finance other tax benefits. This provision will also take place after 2025.

Before the change, filers who have taken out tax reliefs were able to take an unlimited deduction for salt. But the so -called alternative minimum tax reduced the benefits for some higher earners.

The lifting of the salt cap had a priority for certain legislators from high tax states such as California, New Jersey and New York. In a political reversal, Trump also expressed support for a more generous salt deduction.

“If you increase the upper limit, the people who benefit the most will be the upper income,” said Howard Gleckman, Senior Fellow in Urban-Brookings Tax Policy Center, usually no tax deductions, said CNBC before.

The salt deduction was missing in the provisional house paths and in the preliminary text. The negotiations of the congress have not yet been completed.

In addition to the TCJA extensions, Trump recently renewed the claims for additional tax benefits that he has included on the campaign path, including no tax on tips, tax-free overtime and tax-free social security benefits. These ideas have not yet been contained in the early house and in the text.

However, there are questions about the details of these provisions, including possible guardrails to prevent abuse, experts say.

For example, you could see a questionable “re -classification of income” in order not to qualify for tips or overtime for any tax, said Muresianu. “But there are ways to alleviate the damage.”