The Senate Finance Committee unveiled a proposal for President Donald Trump’s agenda bill, aiming to make significant changes. The plan includes maintaining key provisions from the House-approved legislation, such as making individual income tax cuts permanent and introducing work requirements in Medicaid. However, the Senate’s proposal also suggests lowering the cap on state and local tax deductions, intensifying cuts to Medicaid, and making various business tax breaks permanent. Senate committees are rushing to finalize their version of the bill to facilitate negotiations with the House and send the package to Trump by July 4.

Furthermore, the Senate’s bill diverges from the House version in several aspects. It proposes to extend the $10,000 cap on state and local tax deductions, which could impact negotiations. Additionally, the Senate committee advocates for permanent tax breaks for businesses, an enhanced child tax credit, and caps on relief measures for tipped workers and overtime pay. Notably, the Senate’s changes to Medicaid requirements could result in more people losing coverage compared to the House’s provisions.

Moreover, the Senate’s proposal includes modifications to energy-related tax credits, debt limit adjustments, and work requirements for Medicaid beneficiaries. These alterations, along with the differing approaches to tax policies and Medicaid, highlight the complexities of crafting a comprehensive legislative package that aligns with various priorities and interests. The Senate’s bill sets the stage for further deliberations and negotiations to reconcile differences and reach a consensus on crucial economic and healthcare policies.