U.S. President Trump's push for a massive tax cut bill has taken a crucial step in the House of Representatives, where the House Ways and Means Committee has voted to pass a draft of the bill. It proposes tax relief totaling trillions of dollars for businesses, families, and small enterprises.
The bill will be submitted to the full House vote after completing procedural reviews. The House is expected to vote next week.
The Republican party plans to complete the legislation without relying on Democratic support, aiming for it to be signed by Trump before July 4th.
The core of the bill includes permanently extending the personal tax cut policies implemented during Trump's 2017 term, maintaining the highest tax rate at 37%; while fulfilling Trump's campaign promises, such as exempting taxes on tips and overtime income, and providing new deduction projects for seniors and car buyers. These measures will take effect from 2025 and continue until 2028.
The reform of state and local tax (SALT) deductions remains a focus. The bill proposes to increase the current $10,000 cap to $30,000 and set a phase-out mechanism for those with annual incomes over $400,000.
Democrats generally oppose the bill, criticizing it as overly favoring the wealthy and large corporations, worsening the fiscal deficit.
House Ways and Means Committee Democratic Leader Neal said, "This is not about promoting economic growth, but about protecting the interests of the super-rich... This is a tax cut plan tailored for billionaires."
According to estimates by the Joint Committee on Taxation, the bill will add $3.8 trillion to the deficit over the next decade, while existing spending cut plans are far from sufficient to offset it. Republicans argue that tax cuts will stimulate economic growth, thereby alleviating deficit pressure, but economists generally remain skeptical.
To raise part of the funding, the bill proposes to cancel several green tax incentives established by the Biden administration, including electric vehicle purchase subsidies, and increase the tax burden on university funds, private foundations, sports clubs, and remittance groups. Other originally proposed increases on business taxes were withdrawn due to lobbying pressure.