Major Tax Overhaul by House Republicans

In a bold move, House Republicans have introduced a tax proposal that aims to elevate the US debt ceiling by an staggering $4 trillion. This initiative, championed by President Donald Trump and humorously referred to as "The One Big, Beautiful Bill", is set to deliver over $4 trillion in tax cuts, with a significant tilt towards benefiting high earners.

Key Features of the Proposal

The bill, anticipated to be voted on before Memorial Day, proposes a reduction in federal spending by $1.5 trillion. Despite initial discussions about introducing a new 39.6% top tax rate for millionaires, the final draft maintains the current rate at 37%. Notably, it includes a temporary tax deduction on tips and overtime pay, effective through 2028, though these earnings will remain taxable thereafter.

Omissions and Additions

One of the most talked-about omissions is the proposed new millionaire tax bracket, which was left out of the final draft. On the brighter side, the bill enhances the estate tax exemption to $15 million and increases business deductions, offering a silver lining to businesses and high-net-worth individuals.