Trump’s ‘Beautiful’ Tax Bill Comes With A Catch For Parents And The Poor

WASHINGTON — Senate Republicans proposed sweeping changes to President Donald Trump's tax bill, which could put them at odds with the GOP-controlled House.

The House passed Trump’s “One Big Beautiful Bill” in late May, and now the two chambers are set to spar over their competing versions ahead of a self-imposed July 4 deadline.

Trump’s “big, beautiful bill” is the centerpiece of his agenda — a sweeping package of GOP priorities that Republicans are racing to pass over unified Democratic opposition, a challenge in the often gridlocked Senate.

At its core is the extension of roughly $4.5 trillion in tax cuts from Trump’s 2017 law, set to expire this year without congressional action. The bill also introduces new tax breaks, like eliminating taxes on tips, and more than $1 trillion in spending cuts.

RELATED: How Trump's Tax Bill Could Affect Social Security, Seniors

According to the nonpartisan Congressional Budget Office, the House-passed version would add $2.4 trillion to the deficit over the next decade and result in 10.9 million more people without health insurance, largely due to new work requirements.

The CBO also found the wealthiest households would receive about $12,000 in annual tax relief, while the poorest would face a $1,600 hike. Middle-income earners would see modest cuts of $500 to $1,000.

Changes Introduced By The Senate On Monday, June 16

Before Monday’s draft was finalized, Senate Republicans were reportedly split between those pushing for deeper spending cuts to address the growing federal deficit and others aiming to protect social safety net programs.

Among the most striking changes suggested by the Senate Monday are deeper Medicaid cuts — including new work requirements for parents of teens — and a rollback of proposed child tax credit increases, all to help pay for Trump’s sweeping tax breaks.

The Senate’s draft keeps the state and local tax deduction, or SALT, capped at $10,000 — the current limit under federal law. But some House Republicans warned they’ll oppose the final bill if that cap remains. In the House version, GOP lawmakers from high-tax states successfully pushed to raise the cap to $40,000, arguing the deduction helps their constituents offset steep local tax bills.

Criticism of the Senate's version came quickly after House Speaker Mike Johnson warned senators about making massive changes.

“We have been crystal clear that the SALT deal we negotiated in good faith with the Speaker and the White House must remain in the final bill,” the co-chairs of the House SALT caucus, Reps. Young Kim, R-Calif., and Andrew Garbarino, R-N.Y., said in a joint statement Monday.

Republican Rep. Nicole Malliotakis of New York posted on X that the $10,000 cap in the Senate bill was not only insulting but a “slap in the face to the Republican districts that delivered our majority and trifecta” with the White House.

Senate Republicans also seek a slower phase-out of some Biden-era green energy tax breaks to continue development of wind, solar and other projects that the most conservative Republicans in Congress want to end immediately. Tax breaks for electric vehicles would be immediately eliminated under the proposal.

The Senate draft also expands Trump’s proposed tax break for seniors, offering a larger $6,000 deduction for low- to moderate-income households earning up to $75,000 for individuals or $150,000 for couples.

The news comes as a new poll shows that Americans broadly support funding for safety net programs, according to the survey from The Associated Press-NORC Center for Public Affairs Research. Many Americans see Medicaid and food assistance programs as underfunded.

But some of the largest cost savings in the package come from the Republicans' plan to impose new work requirements on able-bodied single adults, ages 18 to 64 and without dependents, who receive Medicaid, a low-income health care program used by 80 million Americans.

Applicants would need to work 80 hours a month or be engaged in a community service program to qualify.

As for the child tax credit, the House had originally proposed increasing the maximum benefit to $2,500 while the Senate suggested slashing it to $2,200.

The bill is widely opposed by Democrats.

In “the dark of night they want to pass this GOP tax scam,” said Rep. Pete Aguilar, D-Calif.

Other Democrats have called it a “big, bad bill” or a “big, broken promise.”

The Associated Press contributed to this report.