House vs. Senate: Key Differences in Trump's Tax and Spending Bill

Tax Policy Discrepancies

• 💰 The primary differences between the House and Senate versions of the bill lie in the specific tax cuts and provisions.
• 💡 The House proposes no tax on tips through 2028 and a new deduction for overtime pay for individuals making less than $160,000 (no cap), while the Senate has an income cutoff of $150,000 with a $12,500 cap.
• 📈 The Senate offers a larger tax break for senior citizens ($6,000) compared to the House ($4,000).
• 🏠 Both chambers aim to extend and expand 2017 tax cuts, but differ on the standard deduction (House: $1,000 increase through 2028; Senate: $750 permanent increase for 2025) and the child tax credit (House: temporary $500 increase; Senate: permanent $200 increase starting 2026).
• ⚖️ A major disagreement exists on the state and local tax (SALT) deduction, with the House proposing to raise it to $40,000 through 2033 (with limitations for high earners) and the Senate suggesting the same amount but reinstating the $10,000 limit in 2030.

Public Aid and Work Requirements

• 🧑‍🍼 Medicaid work requirements differ significantly: the House limits benefits to adults without children who document 80 hours of work per month and expands this to include adults with children 15 and older. The Senate's proposal includes adults with children 14 and older.
• 🍎 For food stamps, the House requires proof of work from adults, including those with children 6 years or older, while the Senate suggests this requirement for adults with children 14 and older.
• 📌 The Senate bill includes specific provisions to secure Senator Lisa Murkowski's vote, such as one addressing higher federal benefit costs to states like Alaska due to error rates in the food stamp program.