Republican lawmakers advanced sweeping last-minute changes to the proposed tax cut and immigration bill, which they released late Wednesday night. These amendments are a day late and real Donald Trump has been telling GOP lawmakers to fall into line behind the bill. The adjusted bill makes a few notable changes primarily intended to address some concerns related to the impacts of tax deductions, funding for immigration, and investment accounts for newborns.
One of the biggest changes accelerates the phaseout of tax credits for renewable energy sources. These enhanced credits were made available by the Inflation Reduction Act. Under the new timeline wind, solar and battery storage tax credits are phased out by 2028. This new reality accelerates moves to faster transitions in these industries.
The bill raises the cap on the state and local tax deduction by a significant amount. It scales up from the existing $10,000 to as high as $40,000 for households with annual incomes of $500,000 or less. This is a smart adjustment that will help maximize the size of tax relief delivered for those who earn the most. It equally represents a growing recognition of state financial pressures.
The updated legislation addresses costs associated with immigration by establishing a $12 billion fund. This fund gives the Homeland Security secretary broad discretion to award grants to states, including reimbursement for expenses associated with detaining and removing migrants and other border enforcement activities. This funding will help support these communities’ local priorities in dealing with the ongoing challenges associated with immigration.
The rebranding wasn’t just some gimmicky decision by lawmakers. First, they found a way to rename the investment accounts for newborns from “MAGA” accounts to “Trump” accounts. Parents or guardians are able to jumpstart these accounts with an initial $1,000 contribution from the federal government. This incentive is valid for all children born or registered between January 1, 2024, and December 31, 2028.
Even worse, the bill will sticker-shockingly fully deregulate gun silencers. It decouples these devices from the national registry under the National Firearms Act, which treats them as machine guns. This much of the legislation addresses some of the biggest GOP lawmakers’ complaints. Western Republican lawmakers or maybe they are protecting the sales of gun silencers. The revision also continues their effort to repeal a $200 excise tax on these devices.
In a significant shift, Republicans opted to remove a section that would have altered calculations for federal workers’ retirement pensions. Annuities will still base the average of the highest three years of earnings. This reasoned approach will further provide certainty to federal employees as they make long-term retirement decisions.
The adjustments made underscore the GOP’s commitment to advancing legislation that aligns with their broader fiscal and immigration policies while addressing various stakeholder concerns. President Trump has been leading the charge for these changes. Republican leadership is confident this revised bill will earn enough yes votes from their party’s members.
