Overview

• The Senate Finance Committee on June 16 released its version of President Trump’s legislative package, overhauling tax and healthcare provisions from the House-passed bill.
• Its draft deepens Medicaid cuts by tightening work requirements, mandating more frequent eligibility checks and lowering the healthcare provider tax threshold from 6% to 3.5%, a move estimated to increase the uninsured by millions.
• The proposal retains the SALT deduction cap at $10,000 as a negotiating placeholder, prompting House Republicans from New York, California and other high-tax states to threaten a revolt unless it is raised to $40,000.
• Key tax changes include capping deductions on tipped income at $25,000 and overtime wages at $12,500, scaling back the unlimited allowances approved by the House.
• A $5 trillion debt-ceiling increase included under budget reconciliation faces opposition from senators like Rand Paul, adding pressure to reconcile chamber differences before July 4.