House Republicans Unveil New Tax Plan Highlights/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ House Republicans revealed part of their upcoming tax package, highlighting a temporary boost to the Child Tax Credit and an increased standard deduction. The plan aims to appeal to middle-income voters ahead of the 2025 midterms. Controversial proposals and offsets are expected to follow in future amendments.
GOP Tax Proposal Quick Looks
- Child Tax Credit raised by $500, to $2,500
- Standard deduction for couples increased to $32,000
- Lower income tax rates from 2017 extended permanently
- Estate tax eased; top income tax rate unchanged
- Business owners get expanded tax breaks
- Multinational tax rules adjusted to reduce burdens
- Controversial tax hikes and green cuts not yet included
- Committee markup set for Tuesday at 2 p.m.
Deep Look
GOP Reveals Partial Tax Plan Focused on Families and Middle Class
WASHINGTON, D.C. — House Republicans unveiled key elements of their long-awaited tax package on Friday evening, spotlighting proposals aimed at middle-income families while delaying debate on more contentious provisions.
The tax-writing Ways and Means Committee announced it will begin markup on the package Tuesday at 2 p.m., providing the first formal debate on the legislation that could reshape the tax code ahead of the 2025 midterms.
Among the headline proposals:
- Child Tax Credit would rise by $500, bringing the total to $2,500 per child through 2028, before reverting to $2,000. It would also be indexed to inflation.
- Standard deduction for married couples would increase by $2,000, lifting it to $32,000.
- Both provisions would apply retroactively to this tax year, setting the stage for larger refunds next spring.
These measures are intended to counter accusations from Democrats that GOP tax policy primarily benefits the wealthy.
“Ways and Means Republicans have spent two years preparing for this moment, and we will deliver for the American people,” said Committee Chair Rep. Jason Smith (R-Mo.). “Pro-family, pro-worker tax provisions are the heart of President Trump’s economic agenda.”
Business and Estate Changes Also Included
For business owners, the bill offers:
- A boost to the Section 199A pass-through deduction for unincorporated businesses.
- Lower tax rates on global intangible low-taxed income (GILTI) and other international tax provisions.
Wealthier Americans would also benefit from relaxed estate tax rules, though the top individual income tax rate remains unchanged — a provision previously hotly debated among Republicans.
What’s Missing — For Now
Notably absent from the 28-page legislation are the tax increases or offsets required to fund the proposed cuts. Among the potential revenue-raisers being considered:
- A new tax on college endowment earnings.
- Rollback of green energy tax credits passed under President Biden.
Also not included yet: President Trump’s promised tax exemptions on tips, overtime pay, and other wage-based income enhancements. Those are expected to be added in future amendments.
The bill also punts on resolving the politically sensitive SALT deduction cap, with ongoing internal GOP disputes over how high to raise the limit, currently at $10,000.
Immigration-Linked Credit Restrictions Included
The proposal introduces new rules to prevent children of undocumented immigrants from receiving the Child Tax Credit — even if those children are U.S. citizens. The move is likely to spark legal challenges and renewed debate over immigrant rights.
What’s Next?
- Full cost estimate for the package has yet to be released.
- Public hearings and a detailed amendment process are expected next week.
- The GOP aims to pass the package ahead of the looming expiration of 2017 Trump tax cuts, many of which end this year.
Failure to act would cause tax credits to shrink and rates to rise for tens of millions of Americans.
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