As Congress navigates a significant tax and spending bill, many families are left wondering how it will affect their finances. The impact of the legislation will vary based on individual income, age, and participation in government programs.
The measure, often referred to as President Trump's "one big beautiful bill," is actually composed of two separate proposals: the House version, which has already been passed, and a new Senate version that is expected to go to vote soon.
Senate Majority Leader John Thune commented on the ongoing process, stating, "I'm looking forward to taking up these provisions in the near future as part of our final legislation."
RELATED STORY | From tax cuts to the border wall: Here's what's in Trump's 'Big, Beautiful Bill'
Here are some key differences between the House and Senate versions:
Big Difference #1: Child Tax Credit
The House version increases the child tax credit from $2,000 to $2,500 per year, while the Senate version proposes a smaller increase to $2,200.
Big Difference #2: Tax Deductions for Seniors
The House version introduces a new deduction allowing seniors to claim $4,000 more than younger Americans. Conversely, the Senate version allows for a $6,000 deduction.
Big Difference #3: Medicaid Changes
While both versions share similarities, the Senate is incorporating a cap on taxes that states can impose while also expanding work requirements for some Medicaid recipients. Senate Democratic leader Chuck Schumer criticized the Senate's approach: "You couldn't think the Senate could do worse than the House when it came to Medicaid but they sure did."
IN CASE YOU MISSED IT | Trump tax bill will add $2.4 trillion to the deficit and leave 10.9 million more uninsured, CBO says
Nonpartisan analysis on the Senate version is anticipated soon, while insights regarding the House version are available. A recent letter from the nonpartisan Congressional Budget Office states, "…if the legislation was enacted, U.S. households, on average, would see an increase in the resources available to them."
The report estimates that resources would decrease for households at the lower end of the income distribution but increase for households in the middle and upper classes.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
