What is in Trump's 'big, beautiful' tax bill, from Maga accounts to salt deductions

President Trump's tax plans have been confronted on a bumpy street in the past few days, with the Republican leaders strive for a coordination in the House of Representatives in front of the Memorial Day, even if the law of the law remains in the air.

A significant thrust came on Sunday evening when the legislation received approval from an important congress committee, an unexpected victory after he had reached the blocks on Friday when the house budget heard. Four conservative republicans who had teamed up with the Democrat decided to breastfeed the legislative template too greenish while maintaining pressure on changes.

It is all part of a grinding process, with more tax changes to issue concerns about state and local tax deductions (Salt). Other parts of the legislation also become close an overview of how the size and form of Medicaid drugs that are taken into account.

However, the total frame of the tax plan becomes clearer from day to day, whereby a package is slowly forwarding, the billion dollars cost and a number of changes from the payment of taxes to new business world provisions.

There is even a change on how you could save for your children with a plan for so-called “Maga accounts”.

The plan would also increase the nation's debt limit by 4 trillion dollars after the finance minister Scott Bessent had warned, the American credit view authority was on the “warning route” and could be exhausted until August.

The goal for spokesman Mike Johnson – since he continues to be three groups of Republicans, remains a complete coordination from the house before the impending break, according to which the bill is sent to the Senate for further discussion (and certainly a lot more changes).

“The tax bill of the House Committee should be seen as an opening offer for a strenuous process,” said Brian Gardner, the strategist of the Stifel Chief Washington Policy, in a recent hint, and recalled that the final goal for the passage is until after this summer, even if other analysts could indicate that he was closer on December.

Here are some of the highlights from Trump's “Big, Nice bill”.

The legislation revolves around an extension of tax cuts for people who are included in the 2017 tax cuts and jobs and were signed by Trump as president during his first term.

The immediate effect would be a continuation of the status quo for taxpayers after this law has temporarily reduced interest rates from 2017. If the congress does not act, these lower tariffs will expire and will rise to the level before 2017 next year.

When the invoice is passed, the highest earners of America will have a persistent top rate of 37%. After the Republicans have discussed – but for the time being, the Republicans have been rejected – this comes an idea to increase the rate for millionaires.

The invoice also offers some new delicacies for individuals.

It would fulfill the signature campaign for the Trump campaign that remove taxes for tips, overtime and autocreditz interest. It also offers an extended standard deduction for seniors after Trump promised to eliminate taxes on social security benefits.

The NO tax on tips and overtime excludes “highly compensated employees” who fall over certain threshold values. The provisions of the tips were recently revised so that GIG Economy workers were included. The CEO of Uber (Uber), Dara Khosrowshahi, said he was “grateful” for the change.

Many of these provisions also raised the eyebrows because they are supposed to run in 2029, as Trump is supposed to leave the office. It is just one of many changes that would be temporary.

Such a change would increase the tax credit for children to $ 2,500 compared to the current level of 2,000 US dollars. Another provision includes a bonus of USD 1,000 for the standard deduction of 15,000 to 16,000 US dollars for individual filers. Both also fall in 2029.

Other parts of the invoice deal with things such as estate and gift taxes as well as measures to expand the range both of the health savings accounts and 529 educational savings accounts.

The invoice also creates a new savings plan for children called “Estate for growth and progress”.

The acronym – Maga – is no coincidence.

For US citizens, the accounts could be classified by the government with a potential contribution of $ 1,000 and would then allow contributions of up to $ 5,000 a year after taxes.

It is an idea that some legislators – especially Senator Ted Cruz from Texas – have been promoting for years.

However, the usefulness of these accounts was immediately questioned, whereby tax experts found that contributions only from dollars after taxes and apparently are unable to freely withdraw the money tax, restrict the benefits according to the original contribution of the government.

The legislation also includes a number of business-centered provisions such as new deductions for depreciation of property, interest costs as well as research and development costs.

The invoice also makes the 199a deduction permanently with a new price of 23%. This deduction also known as a pass-through deduction-concentrated on often smaller companies that are organized as S-companies or partnerships.

The invoice also has some new wrinkles, e.g. This came partly in the process after a thrust of the White House, which was cited better by the finance minister.

“These provisions offer the certainty and support small companies and manufacturers who have to invest in America,” said House Ways and Means Chairman Jason Smith during a recent debate with the business roundtable and added in a statement that the company regulations were a step towards a more competitive tax system for companies.

The invoice also includes a variety of credits for clean energy, which are implemented during the bid administration for things such as solar collectors and electric vehicles.

It is another potential trigger in the coming months, in which some Republican senators are careful before the cuts that benefit their home states and signal that they could move out of these cost savings when the invoice reaches their desks.

However, the business side of the main register is also remarkable for what is not included.

A tax change that was hotly debated with Trump was even his weight behind the idea of ​​closing the gap worn.

But no changes to this tax provision – referred to by some as the most popular tax capacity of the hedge fund managers – stood outdoors when the legislation is published. Another Trump pushed into the bill for the increase in taxes to Sport franchise.

Likewise, changes to corporation tax rate were often discussed on the campaign path, but are not included in the package. Trump often spoke of reducing corporation tax rate for US manufacturers to 15%, but there are currently no provisions.

Another part of the draft law – albeit technically in a separate share of the energy and trade committee – is also observed by technology companies.

It is said that no state can enforce “any law or regulation artificial intelligence models, artificial intelligence systems or automated decision systems for a period of 10 years if the invoice is passed. It is a potentially huge victory for technology companies who want to minimize the legal restrictions.

Back in the tax share of the law, there are also provisions that reflect some of Trump's recent cultural war lawsuits with a new foundation tax for some universities and a tightening, whether undocumented workers and a new tax of 5% on transfers that can be paid abroad by non-citizens.

It is an overall package that immerse yourself on 1,116 pages and clearly has the opportunity to go before the law. But one thing that is already clear is a huge price.

The taxes of the invoice alone will cost over 3.8 trillion dollars if they are issued according to the non -partisan joint committee for taxation. That is between $ 7.7 trillion in tax cuts and tax-specific offsets of $ 3.9 trillion.

According to an analysis of the committee for a responsible federal budget, the legislative template could contain elsewhere in the legislative template, which could lead to a new red ink of over 3.2 trillion dollars.

If many of the currently temporary cuts are extended, the costs could fall over 5.2 trillion dollars in the next decade, the group stated.

And before the final negotiations, things could become even more expensive, with the Republicans of the Blue State promised to sink the bill if the deduction of the state and the local tax (Salt) is not more generous.

A proposal would increase the salt cap to 62,000 US dollars for individuals and the government would cost more than almost all other large new Trump tax reductions, which will have almost 1 trillion dollar of almost 1 trillion US dollar in the next decade.

Ben Werschkul is a Washington correspondent at Yahoo Finance.

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