Republicans in the Senate submitted a bill to make Trump tax cuts permanently

The Republicans of the Senate presented their room version of the tax cuts package of the Republican Party and accessories, as Congress looks forward to presenting the president Donald Trump “A major and beautiful bill” before July 4.

The majority of the Republican Party of the Senate Finance Committee issued a draft part of the reconciliation legislation, which is expected to be considered in the entire upper room in the near future.

It aims to prevent a tax increase in excess of $ 4 trillion at the end of this year, when temporary tax cuts in the tax and job cuts law (TCJA) ends for 2017.

Below is a look at how the Senate version of the package affects some tax policies that affect more American taxi And families:

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Tax rates

the Senate Bill Bill It would make low tax rates of TCJA permanent, instead of making them temporary, as happened in TCJA, to comply with the budget settlement rules that limit the bill effect on the budget deficit until after a 10 -year budget window.

Under the invoice, the brackets will remain 10 %, 12 %, 22 %, 24 %, 32 %, 35 % and 37 %, at the lowest level to top. If the bottom TCJA rules are allowed to end, most of these arches will be slightly higher by 10 %, 15 %, 25 %, 28 %, 33 %, 35 % and 39.6 %, respectively.

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Standard discount

Most taxpayers choose to use a standard discount instead of detailing the tax declaration – which is approximately 10 % of the taxpayers he has made in recent years.

TCJA almost doubles Standard discount For the tax of 2025, it was set at $ 15,000 for individual employees and $ 30,000 for married taxpayers.

Under the Senate Bill, the record deduction will rise to $ 16,000 for individual employees and $ 32,000 for married employees in the tax year 2026, then it will be modified for inflation in the following years.

No tax on advice

The Republican Party tax package will create a new discount of $ 25,000 for the qualified advice that an individual usually receives Regular advice. It will be available for employees who receive W-2 as well as independent contractors receiving model 1099.

Each of the elements and non -elements will be able to claim the opponent, whose income for taxpayers exceeds the total modified income of 150,000 dollars per person or $ 300,000 for joint tax approval. The absence of a tax for tax for 2025 to 2028 will be allowed, which means that it will not be permanent and will require a future extension after 2028 tax.

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No tax on additional work

The Republican Party bill will create a new discount of $ 12,500 for the qualified Additional work compensation. The stages of the discount for taxpayers with a total rate rate exceeding 150,000 dollars per person or $ 300,000 to obtain joint tax declaration.

In addition, the additional work discount will not apply unless the amount of additional compensation compensation is reported separately to the W-2 taxpayer model.

It is very similar to that there is no tax on providing advice, the additional work deduction will be available for years of taxes from 2025 to 2028, except for a future extension.

No tax on the benefit of the car loan

The “big and beautiful bill” will also create a new discount of $ 10,000 for qualified passengers The benefit of the car loan In a certain tax year. The deduction will advance when the total modified income of the taxpayer is $ 100,000.

Passenger vehicles in effect include cars, trucks, trucks, four -wheel drive vehicles and motorcycles that are manufactured for use in public streets, roads and highways; The final assembly occurs in the United States, the draft law determines the final assembly as the process that the manufacturer produces a vehicle and delivers it to a merchant with all parts necessary for operation.

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As with additional work discounts and tips, the provision of the automatic loan will be valid for the tax years from 2025 to 2028.