U.S. Sen. Mike Crapo (R-ID), chairman of the Senate Finance Committee, this week released the legislative text within the committee’s jurisdiction for inclusion in the budget reconciliation bill.
The bill would extend the 2017 tax cuts and make them permanent. It would also enhance the child tax credit and the standard deduction. In addition, it would make permanent the small business deduction.
“This bill prevents an over-$4 trillion tax hike and makes the successful 2017 Trump tax cuts permanent, enabling families and businesses to save and plan for the future,” Crapo said. “It delivers additional tax relief to middle-class families still recovering from record inflation under the Biden Administration. It powers the economy by permanently extending critical pro-growth provisions and introduces new incentives for domestic investment, providing certainty for American job creators to spur domestic economic activity and invest in their workers.”
Further, the budget bill would eliminate the taxes for tipped workers and the taxes for overtime for hourly workers. Also, it would mandate no taxes on auto loan interest for new cars made in the United States.
In addition, the bill would eliminate clean energy tax incentives including those for electric vehicles and solar panels.
“The legislation also achieves significant savings by slashing Green New Deal spending and targeting waste, fraud and abuse in spending programs while preserving and protecting them for the most vulnerable,” Crapo said.
The bill targets reforms to Medicaid. Specifically, it establishes work requirements for able-bodied adults who are choosing not to work and do not have dependent children or elderly parents in their care. It would also increase the frequency of eligibility verifications for able-bodied adults and removes individuals from Medicaid rolls who have homes worth over $1 million.
Further, it would prevent illegal immigrants from receiving Medicaid benefits and ends Medicaid payments for abortion services and gender transition procedures.
In addition, it would prevent pharmacy benefit managers from overcharging Medicaid for prescription drugs.
Overall, it would slow spending growth in Medicaid over the next 10 years.