Overview

• The House narrowly passed the $4 trillion reconciliation bill, 215–214, with no Democratic support, advancing it to the Senate for further consideration.
• The legislation makes permanent key provisions of the 2017 Tax Cuts and Jobs Act, including the 21% corporate tax rate, while omitting proposed changes like carried interest reform and a 'baby bonus.'
• The bill raises the child tax credit to $2,500 through 2028 but offsets tax cuts with reductions to Medicaid, SNAP, and clean energy credits, sparking concerns about its regressive impact.
• Supporters argue the bill simplifies the tax code and strengthens U.S. competitiveness, particularly against China, by incentivizing domestic manufacturing and innovation.
• Critics highlight the $4.6 trillion cost over 10 years and claim the bill disproportionately benefits wealthy Americans while increasing burdens on low-income families.