Senate Republicans Divided Over Trump Tax Megabill Ahead July 4 Deadline

Senate Republicans and President Trump are navigating a critical week as they attempt to finalize a major tax and spending bill central to their domestic agenda, aiming to meet a self-imposed July 4 deadline. The legislation includes contentious issues such as Medicaid cuts and tax provisions related to tips and overtime, which are among Trump's key campaign promises. While the Senate Finance Committee plans to release its portion of the bill, uncertainty remains over the State and Local Tax (SALT) deduction cap, with many Republicans favoring a lower cap than the $40,000 figure passed by the House. Some Republicans express skepticism about the bill's ability to address long-term deficit and debt concerns adequately, with fiscal hawks like Sen. Ron Johnson voicing criticism. Despite internal divisions and holdouts, GOP leaders hope to retain tax incentives and make business tax breaks permanent, a priority for several members. The outcome of these negotiations will significantly influence the bill’s passage prospects when it returns to the House.