Monday, May 26, 2025

Reconciliation Bill 5-27-25

The House and Senate are dealing with tight margins in the House and Senate. The House Bill had to be a Reconciliation Bill to avoid the 60 Senate votes required to bring the Bill to the floor in the Senate. The Bill made the 2017 Tax Rates permanent to avoid raising taxes to pre 2017 levels. The Debt Ceiling needed to be raised to avoid default.  Reducing the lower Income Tax Rates further will require a separate Bill. Reducing the Corporate Tax Rates will be finalized on this Bill. 

The House Reconciliation Bill passed on May 22, 2025, included removing regulations and many other reforms.

https://www.congress.gov/bill/119th-congress/house-bill/1/text

The Senate has added enhancements. The House and Senate will agree and send the Bill to President Trump to sign into law. This law 

US Debt Ceiling Increase

The House bill passed on May 22, 2025, would raise the debt ceiling by $4 trillion. This increase would allow the government to continue paying for its existing obligations without facing a default, according to NPR. The bill also includes various other provisions, including tax cuts and changes to social programs. 

https://www.google.com/search?q=increase+in+debt+ceiling+in+the+house+bill+2025

Child Tax Credit

The House GOP bill proposes a number of changes to the child tax credit. The bill, if passed by the Senate, would: Temporarily increase the credit to a maximum of $2,500, from $2,000 currently, effective from 2025 through 2028, at which point the maximum credit would drop back to $2,000.May 15, 2025

https://www.google.com/search?q=increase+in+child+tax+credit+for+low+earning+single+moms+in+the+house+bill+2025

Earned Income Tax Credit

The 2025 House Budget Resolution, as announced by the Senate, includes an expansion of the "Earned Income Tax Credit (EITC)" for individual adults without dependents, according to the Senate. This expansion would provide greater financial relief for low-income workers, including single mothers, according to the Senate. Additionally, the resolution includes expanded Medicaid coverage and protections for vulnerable populations. 

Here's a more detailed breakdown: 

The Senate modifies the Executive proposal to increase and expand the EITC for individual adults without dependents, according to the Senate. This would provide greater financial relief to low-income workers, including single mothers who may not have children to claim the Child Tax Credit.

The resolution also includes expanded Medicaid coverage and protections for vulnerable populations, which could indirectly benefit single mothers and their children by providing access to essential healthcare services.

https://www.google.com/search?q=increase+subsidies+for+oow+earning+single+moms+in+the+house+bill+2025

Investment Depreciation

The proposed tax legislation, will restore 100% bonus depreciation for qualified property placed in service after January 19, 2025 and before January 1, 2030. This would allow businesses to deduct the full cost of eligible equipment in the year it is placed in service, rather than depreciating it over time. 

Key Details: 100% Bonus Depreciation: The bill would reinstate 100% bonus depreciation for qualified property, which generally includes equipment and machinery. 

Effective Date: The provision would apply to property acquired and placed in service after January 19, 2025, according to various sources. 

Expiration Date: The 100% bonus depreciation would be available through 2029.

Other Provisions: The bill also includes other provisions related to business taxes, such as an increase in the small business deduction and R&D expensing

Qualified Property: The term "qualified property" is generally defined to include most equipment and machinery. 

Benefits: 100% bonus depreciation provides businesses with an immediate tax deduction, which can boost cash flow and encourage investment. 

https://www.google.com/search?q=100%25+expensing+for+busineses+in+house+bill+2025

Comments

If Republicans can increase their numbers of House and Senate members in November 2026, we should be able to put the US economy on the path to full recovery.

This explains how Trump is balancing spending until 2028 to include system upgrades to ensure that the US leads in Defense, Technology and Productivity. The jobs will be created to restore the US Middle Class.

There are currently 7 million US jobs that need to be filled. We can expect this level of hiring will continue.

Norb Leahy, Dunwoody GA Tea Party Leader

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