Revised US Senate Republican Tax Cut Bill Proposes Raising Debt Ceiling by $5 Trillion

According to a report by Jinse Finance, Senate Republicans on Tuesday unveiled revised tax and healthcare provisions within Trump’s multi-trillion-dollar economic plan, marking a key step toward their goal of passing the bill before July 4. The new version expands certain tax benefits and raises the debt ceiling by $5 trillion, an increase from the $4 trillion in the House-passed version. This draft largely follows the framework of the House bill, as Senate Republican leaders aim to avoid protracted negotiations over substantive issues—if the Treasury Department cannot continue extraordinary debt limit measures by mid-August, the U.S. could face a risk of default. Notably absent from the draft is an agreement on state and local tax (SALT) relief. The bill temporarily retains the current $10,000 SALT deduction cap as a transitional measure, while lawmakers continue to negotiate this politically significant tax cut. The legislation largely extends Trump’s 2017 tax cuts for families and small businesses, which are set to expire at the end of 2025. The bill also introduces a series of new tax cuts, including the elimination of taxes on tips and overtime pay, as promised by the president during his campaign.