- House Ways and Means Republicans released the second phase of a tax package on 12 May 2025.
- The second part is broader, including key policy priorities like exempting tipped and overtime income from taxation.
- It proposes reinstating expensing for domestic research and experimental expenditures.
- A contentious provision is a revised cap on the state and local tax deduction, raising it to USD 30,000 for certain taxpayers.
- The proposal has faced opposition, especially from Republicans in high-tax states.
- To offset costs, Republicans suggest rolling back clean energy incentives and modifying excise tax rates on investment income.
- The tax package is costly, with initial estimates projecting nearly USD 5 trillion for parts unveiled on 9 May.
- The full cost and revenue impact of the broader package are pending further estimates.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
