What's in the Trump Tax Bill That Just Passed the Senate

[lostincalifornia]

Here is a paraphrased summary of what is impacted with actual details outlined in the links from Bloomberg.com, and taxfoundation.org below:

State and Local Tax Deduction: up to 40K for 5 year period.

No Tax on Tips. up to 25K for individuals as well as overtime tax exemption up to 12.5K for individuals, and 25K for couples through 2028. Phase out at 150K per person.

Medicaid. Medicaid health insurance would be cut by nearly $1 trillion over 10 years, and 11.8 million Americans would lose health insurance, according to CBO.

Rural Hospital Fund. 50 billion added to offset the medicaid cuts.

Clean Energy. Fast track phasing out of clean energy tax credits.

Electric Vehicles. 7500 dollar tax credit on clean energy vehicles would end in September 2025, instead of end of the year.

Auto Loan Tax Deduction. Up to 10K on interest payments on auto loans through 2028, on for new vehicles assembled in the US.

Permanent Business Tax Breaks. Would be made permanent.

Semiconductors. An investment credit for semiconductor manufacturers increased to 35% from 25%.

Child Tax Credit. Child tax credit increased from 2000 to 2200.

Trump Child Accounts. Child tax deferred accounts up to 5000 dollars per year.

Endowment Tax

Consumer Protection. Consumer protection funding would be cut in half.

Food Aid. Would be cut by expanding work requirements.

Border Wall and Detention Centers. 45 billion for detention centers, and 47 billion for infrastructure, including the wall.

Remittances. Migrants who send money abroad would be taxed at 1% of the amount of the transfer. That is less than the house version of 3.5%

This link is firewalled:

https://www.bloomberg.com/news/articles/2025-07-01/what-s-in-trump-s-one-big-beautiful-bill-passed-by-the-senate?srnd=homepage-americas

This link is NOT firewalled:

https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/

[Lovie777]

1. That's not enough for rural hospitals....................

they will be the first to close their doors.

[Buckeyeblue]

2. I just dont know how you cut medicaid by that much

We could eliminate medicaid, replace with a single payer system. Increase taxes on the very wealthy to the tune of 1 trillion per year. Big corporations wouldn't need the tax cut because they'd save quite a bit on not having to offer health care. You could institute a health care cost tax on everyone, probably around 15%. Oh, and for profit health care is now illegal.

[lostincalifornia]

3. ok, but how exactly will that happen? The election of 2024 was an existential election, an America failed

miserably.

[Buckeyeblue]

4. It won't happen. Just my rant.

From 2009-2011 we had the votes to make that happen. And we still couldn't because special interest money is too strong.

And now we go from passing ACCA to pretty much gutting medicaid.

I hope people realize what they are getting.

[lostincalifornia]

5. Not really. It is much more complicated than that. For one thing there were 5 Democrats in the Senate who

were not going to go for Medicare for all, or single payer. They were lieberman, Connecticut, pyror, arkansas, both Nelsons, one in Florida, and one in Nebraska, and byah in Indiana, and maybe Lincoln in Arkansas also, but I am not sure about that.

So they went with the ACA as a compromise in the Senate, thinking having something was better than nothing, but even that was not a sure thing because of some unforeseen events.

While the House was Democratic as a result of the 2008 elections, the Senate was tied with
49 Democrats, 49 Republicans, and two Independents, Lieberman and Sanders going into 2008. When the Senate was finally decided the Democrats picked up 8 seats to increase their majority 57-41, though Al Franken's recount victory was not official until July. With the two Independents, the Democrats were one vote shy of the supermajority magic number of 60 they needed to ward off any filibuster attempts and move forward with broad healthcare reform legislation. However, in 2009 republican Arlen Spector changed parties giving the Senate Democrats that coveted 60th vote.

With the Democrats having a safe majority in the House, and a filibuster-proof supermajority of 60 in the Senate. That only lasted four months though because Ted Kennedy died in August 2009, leaving the Democrats with 59 seats, including the two independents.

In September Democrat Paul Kirt was appointed interim senator from Massachusetts to serve until a special election for Kennedy's seat in January 2010, once again giving the Democrats the 60th vote.

At that time there didn't seem to be an urgent need for Democrats to reconcile both bills immediately, because the special election in Mass. assumed to belong to the Democrat Coakley. Unfortunately, Scott brown, the republican won, that race, and was against the ACA.

That left Pelosi and Obama with no alternative but for the House to take up the identical bill passed by the Senate in December 2009. It passed without any republican support and 34 Democrats against it in the House, and President Obama signed it into law.

To make a long story short, Even without the complications I outlined, there were five Democratic Senators who had to be dealt with, and that result was the ACA.

So when people say we had the majority in both houses, that assumes that all the Democrats are on the same page, and the reality is that seldom happens in today's environment.

When Biden was President we had to deal with Manchin and Sinema.

Things would be so much easier if Democrats were all on the same page, but as is the case many times, Democrats working together is like herding cats. It isn't easy.