Senate Republicans Unveil Revised Trump Tax, Medicaid Cuts, Debt Limit Plans

Senate Republicans unveiled their version of President Trump's "big, beautiful bill," which includes making the 2017 corporate tax cuts permanent, enacting populist tax breaks such as shielding tipped income from taxation, and imposing deeper Medicaid spending cuts than the House plan. The Senate bill proposes stricter work and eligibility requirements for Medicaid beneficiaries, including adults with dependent children over 14, and reduces the federal government's share of Medicaid spending by lowering provider taxes in certain states. These Medicaid reforms have sparked concern among several Republican senators, including Susan Collins, Josh Hawley, Jerry Moran, and Lisa Murkowski, as well as opposition from Sen. Rand Paul regarding the $5 trillion debt ceiling increase, which exceeds the House's $4 trillion increase. Additionally, the Senate bill phases out renewable-energy tax credits enacted under President Biden and imposes a $10,000 cap on state and local tax deductions, contrasting with the House-backed $40,000 cap favored by blue-state moderates. The Senate Finance Committee's revised legislation reflects ongoing internal GOP negotiations and is expected to face challenges in reconciling differences with the House before it can be passed and signed into law by President Trump.