In case you are wondering, the Big Beautiful Bill is working its way through the Senate. I assume that it will pass, in some version, because if it doesn’t we will see the biggest tax increase in American history on January 1, and no Republican will vote for that.
Meanwhile, how does the Senate version of the bill compare with the House version? Here are some highlights, per Stephen Moore in his Unleash Prosperity Hotline (to which you should subscribe via email). It is a useful summary, whether you agree with Moore’s evaluations or not:
As expected, late yesterday, Senator Mike Crapo released his draft Senate version of One Big Beautiful Bill. On balance, we like it, but we’re still wrestling through it, but here are some initial takeaways.
The Good:
* Restores the $10,000 SALT cap – as opposed to the preposterous $40,000 cap in the House bill.
* Makes almost all 2017 Trump tax cuts permanent, including capital expensing provisions, school choice tax credits, and opportunity zones.
* Limits the remittances tax to cash transactions rather than the House approach that snared bank transactions – which would inhibit foreign investment in the U.S.
* Caps no tax on tips at $25,000 and tax on overtime at $12,500 per year.
* Adopts “current policy” baseline.
…the Bad and Ugly:
* No cut in corporate tax rate (Trump wanted 15%).
* Cuts the tax on earnings from university endowments to only 8% versus 21% in the House bill.
* No private foundation excise tax.
* No 15% business tax on made in USA products.
* No Health Savings Account expansions.
* Extends many green new deal energy giveaways past the end of President Trump’s term.
* Retains double tax on immigrant remittances.
The official summary of the bill from the Senate Finance Committee is here.
