WASHINGTON — President Donald Trump’s sweeping domestic policy package that’s moving through the Senate would affect virtually every American, overhauling tax, health care and energy policy.
It renews the tax cuts Trump signed into law in his first term and pays for them in part with steep cuts to Medicaid, food aid programs and clean energy funding.
But the sprawling package also touches on a range of other policy issues, from immigration to the military to space exploration.
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According to the latest projection from the nonpartisan Congressional Budget Office, over the next 10 years, the legislation would cause revenues to decrease by about $4.5 trillion while cutting spending by $1.2 trillion, increasing the national debt by $3.3 trillion.
Here’s what’s in the current version of the bill. All cost and savings estimates are from the new CBO analysis and cover a 10-year period.
Tax cuts
What it would do: Republicans are seeking to permanently extend the tax rates Trump signed into law in 2017, which are set to expire at the end of the year.
Projected cost: $4 trillion.
State and local tax deduction (SALT)
What it would do: This provision, demanded by House Republicans who hail from high-tax blue states, would allow people to deduct up to $40,000 per year for five years from their federal taxes. The SALT deduction would phase out once an individual’s annual income hits $500,000. As part of the compromise with Senate Republicans, the cap would go back to $10,000 per year after five years.
Projected cost: $142 billion, according to Senate Budget Committee staff members.
No tax on tips, overtime and car loans
What it would do: The bill would exempt tips and overtime pay from federal income taxes, fulfilling two of Trump’s campaign promises. It would also allow taxpayers to deduct up to $10,000 of auto loan interest for U.S.-made vehicles.
The bill also features a temporary tax break of $6,000 for seniors that phases down as income increases.
Projected cost: $150 billion.
Child tax credit
What it would do: Senate Republicans want to permanently increase the annual child tax credit to $2,200. House Republicans have proposed bumping it to $2,500 but scaling back to $2,000 after 2028.
Projected cost: Estimates vary, but it would most likely cost hundreds of billions of dollars.
Immigration enforcement
What it would do: The package would provide Customs and Border Patrol with $46.5 billion to build the border wall and associated infrastructure, like access roads, cameras, lights and sensors. The package also includes $2 billion for the Department of Homeland Security and $29.9 billion for Immigration and Custom Enforcement.
Projected cost: Around $150 billion.
Military funding increase
What it would do: The bill includes $25 billion for a “Golden Dome” missile defense system, $29 billion for shipbuilding and $15 billion for nuclear deterrence,