GOP Bill Features MAGA Accounts, Auto Deductions/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Republicans are advancing a massive tax bill shaped by President Trump, featuring MAGA savings accounts, tax breaks on tips, and cuts to social programs. The legislation faces internal GOP tensions but has Trump’s full backing.
Trump Tax Plan Moves Forward: Quick Looks
- GOP unveils “One Big Beautiful Bill Act” after Trump review
- Bill includes MAGA accounts, auto loan deductions, tip tax cuts
- Trump and Rep. Jason Smith reviewed bill line by line
- Republicans seek to make 2017 tax cuts permanent
- $5 trillion in tax cuts offset by major social spending reductions
- Internal GOP clashes over Medicaid, green energy credits stall progress
- Trump is personally calling lawmakers to secure support
- Speaker Mike Johnson aims for Memorial Day passage
- Democrats condemn bill as a giveaway to the wealthy
- Senate Republicans may introduce changes before final vote
Deep Look: Trump’s Tax Legacy Returns in GOP’s ‘One Big Beautiful Bill’
WASHINGTON — President Donald Trump’s imprint is unmistakable on the House GOP’s latest legislative behemoth — the “One Big Beautiful Bill Act” — a sprawling, 1,116-page tax cut proposal that reads like a campaign platform turned into federal law.
Rep. Jason Smith (R-Mo.), chair of the influential House Ways and Means Committee, said he met with Trump personally at the White House to review the text of the bill “line by line.” The verdict? Trump “was very happy with what we’re delivering.”
The bill, which Republicans are racing to pass by Memorial Day, would:
- Permanently extend Trump’s 2017 tax cuts
- Eliminate federal taxes on tips and overtime pay
- Create a $10,000 deduction for interest on auto loans for American-made vehicles
- Launch “MAGA Accounts” — tax-free savings accounts that would receive a $1,000 contribution for every child born during Trump’s second term
Though framed around economic relief for working families, the bill’s structure mirrors Trump’s core political messaging — simplicity, boldness, and loyalty to his base.
Trump’s Influence: Central and Constant
Speaker Mike Johnson (R-La.), a Trump ally who owes his leadership role to the former president, has stayed in “constant contact” with Trump, even as the president toured the Middle East this week.
“He’s excited about our forward progress,” Johnson said. “He’s in good spirits, and we’re in good spirits.”
Trump’s involvement hasn’t been passive. According to House Majority Leader Steve Scalise, Trump has offered to personally call Republican holdouts and has been “incredibly hands-on” in keeping the bill alive.
Trouble in the Ranks: Conservatives Stall Vote
Despite Trump’s enthusiasm, the bill hit a wall Friday in the House Budget Committee. Five Republicans — Reps. Chip Roy (R-Texas), Ralph Norman (R-S.C.), Andrew Clyde (R-Ga.), Josh Brecheen (R-Okla.), and Lloyd Smucker (R-Pa.) — joined Democrats in blocking the bill’s advance in committee.
Their objections? The slow timeline for Medicaid work requirements and the continued presence of Biden-era green energy tax credits.
Trump, watching from abroad, slammed the rebels on Truth Social:
“We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!”
Negotiations are expected to continue through the weekend, with the committee likely to reconvene Sunday night.
What’s In the Bill?
The legislation proposes over $5 trillion in tax cuts, including:
- Making 2017 tax cuts permanent
- Eliminating taxes on tips, overtime, and some auto loans
- A $500 increase to the Child Tax Credit, bringing it to $2,500
- Creation of MAGA Accounts to boost family savings
- Incentives for domestic manufacturing and energy production
To offset the cost, Republicans propose rolling back:
- Green energy tax incentives from the Inflation Reduction Act
- Funding for food assistance and college aid programs
- Medicaid expansions and SNAP eligibility
- Environmental protection initiatives
According to the Congressional Budget Office, the proposed cuts would result in 7.6 million fewer insured Americans and impact millions of SNAP recipients.
Democrats Slam the Package
Democrats have denounced the legislation as a cruel and regressive handout to the wealthy.
Rep. Pramila Jayapal (D-Wash.) labeled it “one big, beautiful betrayal,” a play on Trump’s favored phrase.
“To pay for it, kids in Kentucky will go hungry, nursing homes and hospitals will close, and millions of Americans will be kicked off their health insurance,” said Rep. Morgan McGarvey (D-Ky.).
Still, Democrats are largely powerless to stop the bill if Republicans stay unified and pass it through budget reconciliation, which circumvents the filibuster in the Senate.
Path to Passage: Trump as Closer
The bill’s survival may now hinge on Trump personally intervening with skeptical Republicans. With Speaker Johnson under intense pressure, GOP leaders hope Trump’s influence will sway the remaining holdouts.
Rep. Mike Rogers (R-Ala.) said bluntly: “You may have noticed he likes talking on the telephone.”
“It’s like an NBA game,” said Rep. Tim Burchett (R-Tenn.). “Don’t watch the first three quarters. The last two minutes is what counts — and that’s where Trump comes in.”
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