Senate Unveils 420 Billion Dollar Tax Reform Bill, Raises State Tax Deduction Cap 300%

The United States Senate has unveiled a new draft of the tax reform bill, totaling 420 billion dollars, as the deadline set by the administration approaches. This new draft reflects internal compromises, particularly in scaling back the size of social security projects and eliminating certain provisions. The Senate is poised to vote on the legislation, with the earliest voting session scheduled for Saturday noon local time, and the final vote potentially occurring as early as Sunday morning.

This new draft reflects compromises among Republican senators, particularly in scaling back the size of social security projects and eliminating certain provisions. The bill includes a temporary agreement with House Republicans to increase the state and local tax deduction cap. The bill would raise the state and local tax deduction cap from 10,000 dollars to 40,000 dollars for five years, before it reverts back to 10,000 dollars.

The Senate's actions mark a significant step forward in the legislative process, bringing the administration closer to its goal of implementing the tax reform by the July 4 deadline. However, it remains unclear whether all 50 Republican senators will support the bill. If necessary, the bill can be further amended in the Senate to secure the required number of votes for passage. If the House Speaker faces difficulties in garnering enough votes, the House may make additional changes to the bill.

The Republican leadership plans to recall House members to Washington early next week, aiming to finalize the bill before the July 4 deadline. The Senate's vote on the tax reform bill is a crucial step in the legislative process, as it brings the administration closer to its goal of implementing the tax reform by the July 4 deadline. The outcome of the vote will determine the future of the tax reform bill and its impact on the economy.