On May 22, the U.S. House passed the sweeping tax and spending bill by a vote of 215 to 214. The One, Big, Beautiful Bill now goes to the U.S. Senate, which is likely to make changes. It includes extensions of many provisions set to expire Dec. 31, along with some new and enhanced tax breaks. For example, it contains President Trump’s pledge to exempt tips and overtime from income tax. There’s also a change to the state and local tax deduction, currently limited to $10,000. The bill would raise the cap to $40,000 for taxpayers with less than $500,000 in income, beginning in 2025. The Congressional Budget Office reports the bill would add $2.3 trillion over 10 years to the national debt.
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