Here’s what it means for you.

Tax Provisions

• Permanent Extension of 2017 Tax Cuts: Makes permanent the individual tax rate cuts from the Tax Cuts and Jobs Act of 2017.
• Small Business Deduction: Permanently extends the Small Business Deduction to encourage new capital investments.
• Elimination of Federal Taxes on Tips and Overtime: Removes federal taxes on tips and overtime pay, aiming to increase take-home pay for workers in tipped occupations.
• Section 179 Depreciation Deduction: Allows a 100% Section 179 depreciation deduction for the adjusted basis of qualified production property.
• Domestic Research and Development Expense: Permits employers to expense 100% of their qualified domestic R&D costs through 2029.
• State and Local Tax Deduction (SALT) Cap Increase: Increases the SALT deduction cap, providing relief to taxpayers in high-tax states.
• Repeal of De Minimis Entry Privilege: Eliminates the tariff-free entry for shipments under $800, potentially impacting small package imports and e-commerce.

Significant Funding Provisions

• Border Security and Immigration Enforcement:
  • $45 billion to increase immigrations detention facilities
  • 14.4 billion for deportation transportation and removal operations
  • $29.9 billion for hiring, training and retention of ICE officers.
  • Customs and Border Protection (CBP) Budget: Increases funding four times the current annual agency budget of $17.1 billion for fiscal year 2024.
  • CBP Technology: Allocates $2.8 billion for border security technology along the northern and southern borders and $1.1 billion for new non-intrusive inspection equipment, including AI and machine learning.
  • Additional Measures: Funds $813 million for CBP vehicles, $673 million for the biometric entry and exit system, and $600 million for workforce recruitment.
• National Defense: Increases military spending by $150 billion.
• $24 Billion to begin the Golden Dome Missile Defense System
• 12.5 billion to modernize America’s air traffic control system.
• Infrastructure Funding: Extends funding for the Highway Trust Fund by adjusting the user fee structure to include electric and hybrid vehicle drivers.
• The EV mandate is gone.
• Radiation Exposure Compensation Act Expansion: Provides funding to expand compensation to individuals affected by nuclear development and testinG.

Significant Savings

• Medicaid: $880 billion in Medicaid savings over 10 years, resulting from work requirements on able-bodied recipients and other cost-saving measures.
• Planned Parenthood Funding: Eliminates all federal funding for Planned Parenthood, redirecting these funds to other health care providers that do not perform abortions.
• Discretionary Spending Reductions: Aims to reduce discretionary spending by $2 trillion over 10 years.

New Medicare Work Requirements

• Implementation: Introduces work requirements for certain Medicare beneficiaries, mandating that able-bodied adults without dependents must work, train, or volunteer a certain number of hours per week to maintain eligibility.
• Exemptions: Exemptions are provided for individuals with disabilities, caregivers, and those in educational programs.
• Rationale: Aimed at encouraging workforce participation and reducing dependency on government programs, while lawmakers seek savings to implement tax cuts.
• Administration Support: Health Secretary Robert F. Kennedy Jr., CMS Administrator Mehmet Oz, Agriculture Secretary Brooke Rollins, and HUD Secretary Scott Turner have supported these requirements, arguing they are “not just about money” but also about promoting self-sufficiency.

Significant Benefits for America

• Tax Revenue and Debt Impact: The bill cuts approximately $4.46 trillion in taxes over 10 years.
• Health Care Benefits for Small Businesses: Helps small business owners provide greater health care benefits, potentially reducing individual health care costs.
• Infrastructure Benefits: Improved infrastructure funding may lead to better roads, bridges, and public transportation, indirectly benefiting taxpayers through enhanced economic activity and reduced maintenance costs.
• Immigration and Security: Enhanced border security and immigration enforcement may reduce costs associated with illegal immigration, such as emergency medical care and law enforcement, though these savings are not quantified in the provided information.

Economic Growth Potential: The tax cuts and business incentives are intended to stimulate economic growth, potentially increasing taxpayer income and reducing unemployment.