The U.S. House of Representatives has passed President Donald Trump’s flagship tax and spending bill, dubbed the “One, Big, Beautiful Bill.” The bill includes various tax cuts and credits, such as a permanent extension of personal tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) and an increase in the deduction limit for state and local taxes (SALT) to $40,000. The bill also expands contributions for Health Savings Accounts (HSAs) for low and middle earners, exempts qualified tips for those earning less than $160,000 from federal income tax through 2028, and allows low and middle earners aged 65 and above to deduct an additional $4,000, or $8,000 for couples filing jointly, on their federal tax return. However, the bill is missing a key proposal that President Trump had promised during his campaign: the removal of the tax on Social Security benefits.
Instead, the bill includes a measure that allows a deduction for individuals earning up to $75,000 and couples earning up to $150,000. President Trump celebrated the milestone, praising House Republicans for their efforts. “THE ONE, BIG, BEAUTIFUL BILL has PASSED the House of Representatives! This is arguably the most significant piece of legislation that will ever be signed in the history of our country,” he exclaimed.
House advances Trump’s tax measure
House Speaker Mike Johnson also expressed his support for the bill, stating, “Today, the House has passed generational, nation-shaping legislation that reduces spending, permanently lowers taxes for families and job creators, secures the border, and makes government more efficient.”
The bill also proposes cuts to Medicaid spending and imposes work requirements. U.S. Rep.
Keith Self (R-McKinney) emphasized the necessity of extending the tax cuts, saying, “The tax cut extension is absolutely mandatory. It is the crown jewel of this whole bill because if we had not extended those tax cuts, families would have seen a $1,500 increase in their tax bills.”
However, Texas Democrats in Congress have expressed strong opposition to these cuts. Rep. Sylvia Garcia (D-Houston) criticized the proposed changes as “bureaucratic red tape meant to disqualify people,” while Rep.
Al Green (D-Houston) emphasized the potential long-term harm, stating, “Their cuts are permanent, but also the harm that’s done will be permanent too.”
The bill now moves to the Senate for further consideration, where it continues to spur intense debate among lawmakers, highlighting the divergent views on tax cuts, Medicaid funding, and border security.