House Republicans Advance Sweeping $4 Trillion Tax Plan Amid SALT Deduction Dispute

House Republicans have unveiled a comprehensive tax reform package dubbed "The One, Big, Beautiful Bill," which aims to extend and expand the 2017 Trump tax cuts while introducing new deductions for tips, overtime pay, Social Security, and car loan interest. The bill proposes roughly $4 trillion in tax cuts, offset by deep cuts to Medicaid, SNAP, and green energy programs, and includes a $4 trillion debt ceiling increase. A significant point of contention within the GOP is the proposed increase of the state and local tax (SALT) deduction cap from $10,000 to $30,000 for incomes under $400,000, which some GOP lawmakers from high-tax states reject as insufficient, threatening party unity. Additionally, the package includes increased taxes on university endowments and rescinds several key renewable energy subsidies enacted in the 2022 Inflation Reduction Act. Despite the internal divisions, the bill has progressed through the House Ways and Means Committee and is expected to face further negotiations before a floor vote. Leadership tensions have emerged over who should negotiate the SALT cap, with Speaker Mike Johnson and Committee Chair Jason Smith at odds over the issue.