According to Bloomberg, the U.S. Senate on Jul. 1 passed Donald Trump’s $3.3 trillion tax bill after leaders of the Republican party were able to persuade holdouts to back the legislation.
The House is set to vote on the bill on Jul. 2. However, the bill's passage is not assured given that Just a few Republicans are able to vote “no” in the House for the bill given the united Democratic opposition.
Conservatives there say they are still pushing for more spending cuts while moderates have expressed alarm at the Senate bill’s reductions to Medicaid as well as other social safety net programs.
The Senate bill would raise the state and local tax (SALT) deduction to $40,000 from $10,000 until 2029, which triggered opposition from a New York Republican who sees it as inadequate, Bloomberg reported. Cuts to hospital payments have caused others to declare their opposition.
According to Journal of Accountancy, if the House makes any changes to the Senate bill, it would need to return to the Senate for another vote.
The vote was 51-50 and Vice President JD Vance cast the deciding vote. In spite of an voting throughout the night where many amendments were proposed, none of the bill’s tax provisions were changed.
The version passed by the Senate will extend many of the expiring provisions of the Tax Cuts and Jobs Act (TCJA). It also addresses Trump's other tax priorities such as giving deductions to remove income taxes on certain tips and overtime pay.
The bill also overhauls some of the TCJA’s provisions on the taxation of corporations’ foreign income and ends many clean energy tax incentives, the Journal said.
On Jun. 28, the AICPA on Saturday published charts that compared the Senate's and House of Representative's tax and personal financial planning provisions with the current law.
On the same day, AICPA President and CEO Mark Koziel, released a statement after the text of the U.S. Senate’s reconciliation bill was released.
“We applaud the commitment of Members of Congress and the Administration to ensure that the budget reconciliation bill continues to preserve parity between C corporations and pass-through entities so that all businesses can continue to grow the economy and invest in their communities," he said.
Koziel added: "Earlier versions of the legislation increased tax burdens for pass-through businesses across the country by imposing new limits on their ability to deduct state and local taxes. We are incredibly grateful to the Senate Finance Committee and members of the Senate and the House for their diligent work to reject new tax increases on pass-through entities and support the business community."