Advice To Senators: Pass One Big Beautiful Bill NOW

The House’s One Big, Beautiful Bill is a strong, conservative package that prevents the largest tax hike in American history while saving $1.6 trillion, the largest spending reduction in a generation. The bill secures our borders by finishing thousands of miles of walls and barriers and hires thousands more Border Patrol and ICE personnel. It also funds the enforcement of the successful “Remain in Mexico” policy.

SOME SENATE REVISIONS

The Senate Finance Committee on June 16th released a revised draft of its section of the One Big Beautiful Bill Act to implement President Donald Trump’s agenda to reduce taxes and improve the economy. If you want the details of what will happen to your wallet if Trump’s 2017 tax cuts, which are expiring 12/31/25, are not extended, see article below.

The committee text covers most of the biggest agenda items in the legislation, including the federal debt ceiling, energy and tax credits, and other budget items. In spite of a request from House Speaker Mike Johnson (R-La.) that changes to the House’s bill be limited, in part because of the difficulties in passing the bill during the first attempt (greedy Democrats want tax increases, not decreases), the proposal includes some major revisions and omissions that could cause trouble when the bill returns to the House.

$5 Trillion Debt Ceiling Bump

The Treasury Department is currently using “extraordinary measures” to keep the government afloat, but those are expected to run out around August. Congress will need to increase the debt ceiling to avoid a default.

As directed by the Senate’s budget blueprint, passed earlier this year to begin the process of crafting the bill in the House, the legislation would raise the federal debt ceiling by $5 trillion.

That provision is likely to irk several House conservatives, including members of the House Freedom Caucus who have set a red line against such a steep increase. The House’s version of the bill would raise the ceiling by $4 trillion, already a concession for some budget hawks.

Deregulation of Silencers, Several Gun Types

While the House legislation would have removed a $200 excise tax on silencers, which reduce the sound of a gunshot, the Senate’s bill goes a step further. It would extend the tax cut to short-barreled rifles, short-barreled shotguns, and “any other weapons” as defined by the National Firearms Act of 1934.

Wrapping in the “Stop Harassing Owners of Rifles Today” Act, introduced by Senator Roger Marshall (R-Kansas), the bill would also remove the paperwork requirements and other regulations imposed by the 1934 law on the affected weapon and attachment types.

Medicaid

The House version would impose new work requirements, getting healthy men of the taxpayer dole, and increase states’ burden in funding Medicaid. The Senate Finance Committee’s revisions would further cut the entitlement program by restricting the rate that states can tax health care providers to pay for Medicaid. Currently, the rate is 6 percent; it would gradually be lowered to 3.5 percent by 2031.

This bill does not change benefits for seniors, pregnant women, those with disabilities, or those with children at home. The bill ensures illegal alien adults do not receive Medicaid and SNAP benefits, ensuring we take care of the neediest Americans first. Oregon, for example, was using Medicaid funds to dance and cooking classes. Even after giving Medicaid benefits to this sanctuary state’s illegals, Oregon had millions of dollars left over, so they just wasted them on non-medical programs rather than sending the money back to Washington DC.

Medicaid-Funded Transgender Procedures Banned

The bill would also ban the use of Medicaid funds for any type of transgender-related procedures. The bill lists several specific procedures that are banned, as in prescribing estrogen or testosterone at levels that go beyond what an individual of the same age and sex would produce naturally. Limited exceptions are provided for treatment of medically verified disorders of sexual development, including intersex conditions.

$10,000 SALT Cap

One of the fiercest debates in the House is over the State and Local Tax (SALT) deduction, which allows taxpayers to deduct state taxes from their federal tax burden.

Purple district House Republicans from Blue States sought, and won, a bump in the cap to $40,000. That concession was essential to the bill’s passage through the US House. The Senate’s draft would do away with the increase, however, bringing it back to $10,000, a figure that is extremely unlikely to pass muster in the House if it’s retained.

Green Energy Tax Credits

The legislation would phase out all Inflation Reduction Act green energy tax credits by 2036, with many expiring by 2028. Wind and solar tax credits will begin phasing out in 2026 and will receive no federal funding by 2028. Nuclear, hydropower, and geothermal tax credits won’t be fully phased out until 2036.

Child Tax Credit Reduced

Where the House version of the bill would have increased the Child Tax Credit to $2,500 per child, the Senate bill will reduce that to $2,200.

Income Taxes

The bill ends taxes on tips and overtime, decreases taxes on Social Security, defunds Planned Parenthood, and prohibits taxpayer funding for transgender surgeries.

Allowing these tax cuts to expire would also cost most states tens of thousands of jobs. For example, the National Association of Manufacturing estimates 17,000 South Dakotans would lose their jobs and the state’s economic output would decrease by $3.1 billion. With South Dakota’s population of only 924,669, one can imagine the horrific impact the massive tax hike would have on bigger states and the entire nation. Here are the details of the huge tax increase: