House GOP Unveils Trump Tax Plan With Cuts

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House GOP Unveils Trump Tax Plan With Cuts/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ House Republicans unveiled President Trump’s expansive tax plan, offering nearly $5 trillion in cuts while slashing Medicaid and food aid to offset costs. Dubbed “THE ONE, BIG, BEAUTIFUL BILL,” it includes tax breaks for tips, overtime, Social Security, and car loans. Democrats and some Republicans warn the bill will hurt millions and skyrocket deficits.

FILE – The Capitol is seen in Washington, March 25, 2025. (AP Photo/J. Scott Applewhite, File)

Trump Tax Cuts Plan Revealed by GOP – Quick Looks

Tax cuts could cost $4.9 trillion over a decade.
Medicaid, SNAP, and green energy programs face deep cuts.
Tips, overtime, Social Security, and car loans get tax breaks.
Boosts standard deduction, child tax credit, estate tax exemption.
House GOP aims to pass package by Memorial Day deadline.
New SALT cap offer rejected by high-tax state Republicans.
SNAP work rules expanded; Medicaid eligibility harder to maintain.
Trump’s plan reignites health care, tax fairness, and debt debates.

House GOP Unveils Trump Tax Plan With Cuts

Deep Look

WASHINGTON (AP) — House Republicans unveiled a sweeping new tax plan Monday that delivers on President Donald Trump’s promise of deep tax relief — but at a high price. The proposal, part of a $4.9 trillion package, includes generous breaks for workers in the service sector, auto buyers, families with children, and Social Security recipients — all while triggering deep cuts to Medicaid, SNAP, and green energy programs.

Branded as “THE ONE, BIG, BEAUTIFUL BILL,” the 389-page legislation marks Trump’s marquee domestic effort of his second term. It aims to extend and expand the 2017 Trump tax cuts and add new deductions that reward middle-class work — but critics say it shifts the burden to low-income Americans and state governments.

What’s in the Tax Plan?

New Deductions and Credits:

Standard Deduction: Raised to $32,000 per household (+$2,000).
Child Tax Credit: Boosted from $2,000 to $2,500 for four years.
Tips and Overtime: Tipped wages and overtime earnings become deductible.
Car Loan Interest: Deduct up to $10,000 if vehicle assembled in the U.S.
Social Security: $4,000 deduction for seniors below certain income thresholds.
Estate Tax: Exemption raised to $15 million, indexed to inflation.

State and Local Tax Deduction (SALT):

Lifted to $30,000 for couples, but reduced above $400,000 household income.
Rejected as “still too low” by GOP lawmakers from NY, CA.

Cuts to Pay for the Breaks

To cover some of the $4.9 trillion in costs (a figure expected to rise), the plan includes:

$880 billion in Medicaid cuts, via stricter work rules and eligibility checks.
$290 billion in SNAP cuts by raising age for work requirements (to 64).
Stripped Biden-era green energy incentives from the Inflation Reduction Act.
Cuts in university endowment tax exemptions, targeting elite institutions.
A new rule revoking nonprofit status from groups allegedly linked to terrorism, sparking concern among civil rights advocates.

GOP Faces Internal Divide Over Costs

While Trump touts the bill as a “must-pass” priority, Republican dissent is growing. Sen. Josh Hawley called cutting Medicaid to fund tax breaks “morally wrong and politically suicidal.”

Rep. Chip Roy warned the plan could explode the national debt:

“I’m not here to rack up $20 trillion more in debt over 10 years.”

Even before additional provisions are added, the Joint Committee on Taxation projects the bill would reduce federal revenues by $4.9 trillion.

SNAP and Medicaid in Crosshairs

The House Agriculture Committee proposed expanding work requirements for SNAP:

Raises age cap from 54 to 64 for childless adults.
Requires some parents with children over 7 to work (previously 18).
States would begin sharing 5% of SNAP costs by 2028.
Only counties with 10%+ unemployment could get waivers.

Meanwhile, to qualify for Medicaid, able-bodied adults must now:

Work, study, or volunteer at least 80 hours/month.
Re-verify eligibility twice per year.

The Congressional Budget Office (CBO) says the Medicaid changes would result in 8.6 million people losing coverage over the next decade.

Green Energy, Higher Education Targeted

The bill seeks to:

Roll back tax credits and funding for wind, solar, and renewables.
Apply a 21% tax on large university endowments, primarily affecting elite schools.
End tax-exempt status for organizations aligned with State Department–designated terrorist groups — raising alarms about political overreach.

What’s Next?

House Republicans plan round-the-clock hearings starting Tuesday to finalize and pass the bill before Memorial Day. Each of the 11 committees responsible for sections of the package must complete negotiations quickly.

While Democrats remain largely opposed, House Speaker Mike Johnson is trying to corral enough GOP votes — especially from moderates concerned about Medicaid and SNAP — to move it forward.

Trump, currently on a Middle East tour, posted: