House Panel Releases Sweeping GOP Tax Bill

President Donald Trump on Monday called on congressional Republicans to unify behind what he hailed as his "ONE, BIG, BEAUTIFUL BILL," a sweeping legislative package that merges tax cuts, immigration reforms, and a raft of domestic priorities into a single reconciliation measure.

"This week the Republicans are meeting in the Tax, Energy, and Agriculture Committees on major pieces of 'THE ONE, BIG, BEAUTIFUL BILL,'" Mr. Trump wrote on his Truth Social platform, urging lawmakers to stand behind House committee chairs Jason Smith of Ways and Means, Brett Guthrie of Energy and Commerce, and Glenn "GT" Thompson of Agriculture. "We must WIN! But now, with the tremendous Drug and Pharmaceutical Cuts, plus massive incoming Tariff Money, our 'GREAT, BIG, BEAUTIFUL BILL' just got much BIGGER and BETTER. The Golden Age of America will soon be upon us."

The comments, made just before Mr. Trump’s planned trip to Saudi Arabia, Qatar, and the United Arab Emirates, came as his administration unveiled an executive action to lower pharmaceutical drug prices by up to 90% under a new "Most Favored Nations" pricing policy. He also lashed out at Democrats, accusing them of trying to "DESTROY our Country" by offering amendments to the bill prior to his press conference.

"When I return from the Middle East, where great things will happen for America, we will work together on any and all outstanding issues," Mr. Trump added. "But there shouldn’t be many — The Bill is GREAT."

Despite the urgency in his messaging, progress on Capitol Hill has been slow. Lawmakers have sent just five bills to Mr. Trump’s desk this Congress. Still, Speaker Mike Johnson is aiming to change that, setting a Memorial Day deadline to pass the reconciliation package through the House. GOP leadership hopes to finalize the bill by July 4 — a timeline that coincides with Treasury Secretary Scott Bessent’s request for a debt-limit increase included in the package.

GOP Draft Releasedccc

On Monday, the house GOP released a draft of the bill (full text below)- which confirms several core policy pillars previously signaled by leadership. Among the most consequential is a 5% remittance tax on international money transfers, designed to fund border security, which includes a new refundable credit for verified U.S. senders and strict compliance rules.

In a significant rollback of Biden-era environmental policy, the bill would terminate or phase out numerous clean energy tax credits, including for residential solar, new energy-efficient homes, and hydrogen production, with sharp limits on components sourced from "prohibited foreign entities"—primarily targeting Chinese supply chains.

The legislation also introduces a new federal income tax deduction for qualified tips and overtime compensation through 2028, aimed at working-class earners. However, these benefits explicitly exclude high earners, service-sector owners, and nontraditional tipping industries, and require both the employee and spouse to have Social Security numbers to qualify—adding a compliance hurdle that could reignite partisan fights over ID requirements.

Beyond those provisions, the bill extends provisions from the 2017 Trump tax law, including the higher estate and gift tax exemptions and the limitation on the deduction of state and local taxes (SALT), with a modified $30,000 cap for individuals that phases down for high earners. This could fuel renewed conflict with blue-state Republicans still pushing for full repeal.

The bill further includes a new cap on the tax benefit of itemized deductions, revives limitations on casualty loss and moving expense deductions, and eliminates miscellaneous itemized deductions altogether—provisions likely to draw sharp resistance from Democrats, particularly those representing high-cost-of-living states.

Other notable points:

• A tax break on overtime through 2028

• Raises the debt limit by $4 trillion

• Creates tax-exempt "MAGA" savings accounts for kids

• Does not include the new millionaire tax bracket

• Limits, or terminates, the tax benefit of itemized deductions

• Requires a certificate to claim the Earned Income Tax Credit (EITC), and imposes penalties for fraudulent misstatements

• Terminates the IRS's direct file program

• Terminates tax-exempt status for any organization that supports terrorist organizations

• Increases penalties for unauthorized disclosure of taxpayer information to $250,000 or 10 years imprisonment

• Permanently extends the expanded child tax credit and requires social security numbers to claim it.

• Permanently increases the qualified business income deduction from 20% to 23%.

• Permanently limits the deduction of gambling losses to the extent of winnings

Key Committees Begin Markups Amid Policy Flashpoints

Meanwhile, three powerful House panels - Ways and Means, Energy and Commerce, and Agriculture - are scheduled to mark up their portions of the bill this week. House Budget is expected to consolidate the legislation ahead of its presentation to the Rules Committee for a floor vote next week, according to Punchbowl News.

Ways and Means released the initial tax draft Friday, with a more comprehensive version expected later Monday. The package proposes new taxes on university endowments and a controversial remittance tax on international money transfers, aimed at funding border enforcement. Republicans have opted not to pursue a new tax bracket for the ultra-wealthy despite Trump’s earlier suggestions.

Significant modifications to clean energy credits from the Inflation Reduction Act are also included. The bill proposes repealing electric vehicle tax credits by year’s end, phasing out others over time, and adding sourcing requirements that effectively exclude Chinese components. Transferability of credits would also be curtailed.