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Republicans unveil tax reform with Trump's top campaign promises

Jason Smith, chairman of the Ways and Means Committee, asserted that the bill that "will help usher in a new golden era of prosperity."

Smith on Capitol Hill/ Brendan Smialowski

Smith on Capitol Hill/ Brendan SmialowskiAFP

Joaquín Núñez
Published by
Joaquín Núñez

The House GOP revealed the details of its tax reform. After weeks of building up anticipation on Capitol Hill, the Ways and Means Committee released the longer version of the proposal, which turns out to be the centerpiece of Donald Trump.

The legislation of 389 pages contains much of the president's campaign promises, as well as other provisions agreed to by House Republicans.

The President celebrated its release on Truth Social, where he stressed the need for members of Congress to put aside their differences to support the bill. "This week the Republicans are meeting in the Tax, Energy, and Agriculture Committees on major pieces of 'THE ONE, BIG, BEAUTIFUL BILL'. Republicans need to UNIFY behind their Highly Respected Chairmen, Jason Smith, Brett Guthrie, and Glenn GT Thompson. Remember, these are men that truly strive to do what is RIGHT for America," he wrote.

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Smith, chairman of the Ways and Means Committee, replied to the chairman on X: "Thank you, Mr. Chairman. House Ways and Means Committee is set to markup this bill, bringing us one step closer to putting One Big, Beautiful Bill on your desk!"

The Missouri Republican also served on the House Budget Committee and as secretary of the Republican conference from 2017-2021. On Tax reform, Smith assured that it "will create jobs, increase wages and investment, and help usher in a new golden era of prosperity."

Point by point, the Republican Party's tax reform

The legislation is the product of several internal debates among congressional Republicans, who argued for weeks over the impact and scope of the reforms.

Among other things, the legislation would do the following:

  • Make permanent the income tax cuts included in the Tax Cut and Jobs Act of 2017 (TJCA).
  • Increase the state and local tax (SALT) deduction limit from $10,000 to $30,000.
  • Eliminate the tip tax (expires in 2028).
  • Eliminate the overtime tax (expires in 2028).
  • Exempt interest payments on domestically produced manufactured automobile loans (expires in 2028).
  • Establish new child trust funds called "MAGA accounts," which would allow families to save up to $5,000 a year tax-free for college tuition, housing payments or other such costs.

This tax reform will be combined with the various energy, immigration and defense proposals, thus constituting the mega-bill pushed by President Trump for this year.

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