Overview

• The June 16 Senate Finance Committee draft phases down the Medicaid provider tax from 6% to 3.5% by 2031, raising alarms about funding cuts for rural hospitals.
• A dynamic analysis by the Congressional Budget Office finds the measure will boost budget deficits by $2.8 trillion over the next decade.
• The bill permanently extends key 2017 Trump tax cuts, including full expensing for new capital investments and immediate research and development deductions.
• It retains a $10,000 cap on state and local tax (SALT) deductions, drawing criticism from Republican senators representing high-tax states.
• Senator Ron Johnson has warned he will oppose the package over its projected deficit impact and urged more time for substantive revisions before the July 4 vote.