House Republicans have officially rolled out a major component of President Donald Trump’s sweeping legislative agenda, releasing a new tax plan that promises to lock in middle-class tax relief, extend Trump-era tax cuts, and reduce burdens on American families and small businesses.
Dubbed a cornerstone of Trump’s “big, beautiful bill,” the proposal includes a permanent extension of the 2017 Tax Cuts and Jobs Act, which is set to expire at the end of this year. GOP leaders warn that without immediate congressional action, millions of working families could face automatic tax hikes of over 20%.
Key highlights of the tax package include:
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Child Tax Credit Expansion: The plan raises the credit from $2,000 to $2,500 per child, offering additional relief to families struggling under Biden-era inflation.
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Death Tax Reform: The estate tax exemption threshold would increase, significantly reducing penalties on family-owned businesses and inherited wealth.
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Permanent Trump Tax Cuts: The 2017 individual and small business tax cuts—considered a major driver of economic growth during Trump’s first term—would be permanently codified, protecting Americans from tax increases.
While the plan has been largely welcomed by conservatives, internal GOP discussions continue around potential tax adjustments for ultra-high earners. President Trump has floated the idea of modestly increasing rates for those earning over $2.5 million annually—arguing that such a move could help finance the broader tax cuts and politically resonate with the working class. Some Republican lawmakers and grassroots conservatives oppose any tax hikes on principle, warning it could set a dangerous precedent.
Another sticking point in negotiations involves the state and local tax (SALT) deduction cap. While leadership proposes raising the cap to $30,000, lawmakers from high-tax states like New York and California argue that figure doesn’t go far enough. They are pushing for a more generous deduction to help their constituents who have long borne the brunt of excessive blue-state taxation.
The House Ways and Means Committee is expected to finalize the full legislative text in the coming weeks. Treasury Secretary Scott Bessent has set a July 4 deadline for passing the bill through the House, positioning it as a key summer legislative victory.
President Trump has described the package as “historic” and “game-changing,” promising that it will restore prosperity, reward hard work, and energize the economy heading into 2026.