According to recent market intelligence from COINOTAG News on June 29th, the U.S. Senate has secured sufficient support in a procedural vote to advance the Trump administration’s proposed tax reform legislation. This development significantly enhances the probability of the bill’s passage in the near term. The Senate, under Republican control, unveiled a revised $4.2 trillion tax and spending blueprint, reflecting a strategic compromise among party factions as the July 4th deadline looms.
The updated proposal addresses internal GOP divisions, particularly concerning reductions in social security programs like Medicaid and the gradual elimination of renewable energy tax credits instituted during the Biden administration. A notable feature of the draft is the temporary increase in the state and local tax (SALT) deduction cap from $10,000 to $40,000 for five years, after which it will revert to the original limit. This adjustment aligns with an agreement reached with House Republicans.
Republican leaders aim to commence the voting process on the tax reform bill by Saturday noon local time, with a final vote anticipated early Sunday morning. Efforts are underway to expedite the legislative process, including recalling House members early next week, to meet the Independence Day deadline set by former President Trump. This legislative momentum is closely monitored by financial markets given its potential impact on fiscal policy and economic forecasts.