Trump's tax, spending cuts bill clears key Senate vote before July 4

Senate Republicans voting in a dramatic late Saturday session narrowly cleared a key procedural step as they race to advance President Donald Trump's package of tax breaks, spending cuts and bolstered deportation funds by his July Fourth deadline.

The tally, 51-49, came after a tumultuous session with Vice President JD Vance on hand if needed to break the tie.

Tense scenes played out in the chamber as voting came to a standstill, dragging for hours as holdout senators huddled for negotiations. In the end, two Republicans opposed the motion to proceed to debate, joining all Democrats. 

It's still a long weekend of work to come.  Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump's first term expire. The legislation contains roughly $3.8 trillion in tax cuts.

 

The existing tax rates and brackets would become permanent under the bill. It temporarily would add new tax breaks that Trump campaigned on: no taxes on tips, overtime pay or some automotive loans, along with a bigger $6,000 deduction in the Senate draft for older adults who earn no more than $75,000 a year.

It would boost the $2,000 child tax credit to $2,200 under the Senate proposal. Families at lower income levels would not see the full amount. 

A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years. It's a provision important to New York and other high tax states, though the House wanted it to last for 10 years.

There are scores of business-related tax cuts.

The wealthiest households would see a $12,000 increase from the legislation, which would cost the poorest people $1,600 a year, according to the nonpartisan Congressional Budget Office analysis of the House's version.