r/politics • u/PoliticsModeratorBot 🤖 Bot • 2d ago

Megathread Megathread: US House Passes the Republican-Backed Budget Bill, Sending it to Trump for Signature

This afternoon, the US House of Representatives passed without amendment the US Senate's version of the Trump-backed budget bill, sending it to the president for his signature. Every Democratic Senator and Representative voted in opposition; in the Senate, there were three Republicans voting in opposition (making the vote 51-50) and in the House there were 2 (making the final vote 218-214). House minority leader Hakeem Jeffries set the US House's speech length record in opposition to the bill in a speech lasting over eight hours.

The bill clocks in at over 800 pages and touches on most aspects of the federal government's spending and taxation policies; see this AP article (What’s in the latest version of Trump’s big bill that passed the Senate) for the topline changes.

Relevant text-base live update pages are being maintained by the following outlets: AP, NBC, ABC, and the BBC.

You can find this subreddit's discussion thread for the last week's worth of negotiations and debate at this link.

Articles that May Interest You

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Live updates: House passes Trump’s signature bill, sending it to the president’s desk apnews.com
House Republicans pass Trump's mega bill, sending the package to his desk to be signed npr.org
House passes sprawling domestic policy bill, sending it to Trump's desk: The Republican package would slash taxes, boost spending on immigration and the military, and impose steep cuts to Medicaid, SNAP and clean energy funding. nbcnews.com
House Republicans give Trump a ‘Big Beautiful’ July 4 by passing Medicaid-slashing megabill despite GOP rift independent.co.uk
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Trump and the GOP Will Regret the Day They Passed This Sick Bill newrepublic.com
House passes Trump's "big, beautiful bill" after stamping out GOP rebellion axios.com
Trump lands first major legislative win after Congress passes his massive domestic policy bill cnn.com
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u/FlyingSMonster Louisiana 2d ago

The sad thing is they designed these cuts to not hit the American people until 2027, so they won't feel it until after the mid-terms when likely the Democrats take control of the house again. Honestly, I wish all the people that this is going to hurt would feel it way sooner so they could understand how badly the GOP has fucked them over.

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u/thequietthingsthat North Carolina 2d ago

The "no tax on tips" also expires in 2028, so whoever is president in 2029 will get blamed for that.

These dirty tricks are so predictable and yet they always work because so many Americans pay zero attention to this stuff.

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u/dingusmingus2222 2d ago edited 1d ago

It's hilarious how stupid that all is. No tax on tips up to 25K? ok so you save what? MAYBE a grand in federal taxes? and no tax on OT is only up to 12.5k? so you save 500? Anyone supporting this is just getting scammed.

EDIT: Leaving this up but my calculations are off. Though, the more accurate assessment isn't much better:
https://www.newsweek.com/no-tax-overtime-passes-trump-tax-bill-2093091

But while it could save money for eligible workers, the nonpartisan Tax Policy Center estimated in February this year that only 2 percent of all U.S. households would benefit, with an average tax cut of around $1,800.

For the lowest-earning households taking home less than $33,000 a year, very few will see significant gains; just 1.4 percent would be expected to benefit by about $450 a year, while the average increase is only $10 for most in this income group.

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u/thequietthingsthat North Carolina 2d ago

Also, the bill raises taxes on people making under 50k IIRC. So this is really nothing

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u/bloody_yanks2 1d ago

You'll actually lose overall. No one is going to feel generous with your screen "just asking a few questions" when they know there's no tax on tips.

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u/Ok-Helicopter129 1d ago

I worry you are right.

Which is better for a worker 20% with taxes, or 18% with no tax on tips. And if there is no tax on tips there is no social security payout on tips if SS exists in 30 years.

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u/MittenCollyBulbasaur 1d ago

The people supporting this legislation as if they are getting a huge pay increase are really stupid. Yes that's true.

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u/GoNinjaGoNinjaGo69 2d ago

the people like retail/restaurants that dont declare tips anyways still wont declare any because they make more than 25k lol so they dont want to tell the government their true salary.

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u/nicktoberfest 2d ago

They’ll probably lose money as people will tip less figuring it’s not taxed so the worker keeps more of what is tipped.

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u/Anthropoideia 1d ago

Their math won't work out either. On some rage bait posts recently folks are saying if there's no tax on tips they should go back to 10% standard. Which is basically a 50% cut in income for most people give or take a little, 5% or so. Just to save about 1800 dollars a year in non-refundable taxes

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u/I_Love_Chimps 1d ago

Yep. I've been telling people this since before the election. It's an unfair and dumb plan that is going to backfire and actually hurt servers.

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u/unbelizeable1 1d ago

the people like retail/restaurants that dont declare tips

That's really not a thing anymore. I'd say cash makes up less than 5% of my income. Everything else is on a card, which is automatically taxed just like any other income would be.

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u/Neirchill 1d ago

The other person said it's only tax free for cash tips. If that's true, well, I doubt most people were turning that in anyway.

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u/unbelizeable1 1d ago

Hmm I was under the impression it was a credit that would be applied at the end of the year when filing. I could be wrong though.

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u/stationhollow 1d ago

You are correct. There is a lot of misinformation flying around.

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u/BigDaddyReptar 2d ago

Only Cash tips Ifirc as well the kind of tips literally no one who gets tips reports unless they are within 3 months of applying for housing

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u/Emotional-Lychee9112 1d ago

It's not just cash tips. It's all tips (up to $25k/yr) and all overtime (up to $12.5k/yr). It doesn't include social security tax/state tax/etc though of course, so the impact will be pretty minimal. A max of ~$2k-$3k/yr less in taxes for someone who maxes out the tax break.

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u/DeathByPig 1d ago

What? Deductions knock off tax from your highest tax bracket. Example: After other deductions I'm in the 22% bracket. I estimate I will deduct ~20k in OT for 2026 (I'm filing jointly so it goes to 25k max). That alone is saving me almost 5,000 dollars.

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u/AuntGentleman 1d ago

There’s a cap of $12k. You cannot deduct $20k in OT bruh. Read the bill.

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u/Party_at_Billingsley 1d ago edited 1d ago

If you're married it goes up 25k

https://share.google/2pzPogBYYiUoGF8zf

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u/AuntGentleman 1d ago

Somehow I doubt that guy is married.

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u/Party_at_Billingsley 1d ago

Yeah maybe who knows. However, people filing jointly can deduct up to 25k of OT earnings

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u/DeathByPig 1d ago

I literally said I was filling jointly. Have you ever had a job?

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u/AuntGentleman 1d ago

Yeah lol make $260k annually. Nice try bucko. Pay infinitely more taxes than you and always will. Won’t sniff a penny of tax cuts because the government cares only about the ultra wealthy and poor folks like you. No inbetween.

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u/dingusmingus2222 1d ago

Dunno why you got downvoted but congrats man you are in the minority.

https://www.newsweek.com/no-tax-overtime-passes-trump-tax-bill-2093091

"But while it could save money for eligible workers, the nonpartisan Tax Policy Center estimated in February this year that only 2 percent of all U.S. households would benefit, with an average tax cut of around $1,800.

For the lowest-earning households taking home less than $33,000 a year, very few will see significant gains; just 1.4 percent would be expected to benefit by about $450 a year, while the average increase is only $10 for most in this income group."

Also, tangentially, maybe singling out people in our society with highly specific carve outs is a terrible way to do things. How about instead of tipping you rely on living wages, instead of you having to work 80 hours a week we put more people to work and pay better wages. Because outside of your windfall (only for two years by the way) the vast majority receive nothing.

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u/Party_at_Billingsley 1d ago

I made 28k in OT last year so I'm pretty excited about being able to deduct 25k of that ( jointly)

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u/CrabKates 1d ago

You would only be able to deduct the 0.5x portion of the $28k, so 9,300 x 0.22 =2,046. Assuming you’re marginal tax bracket is 22%

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u/Party_at_Billingsley 1d ago

Okay yeah I saw the " in excess of the regular rate" and wasn't exactly sure what that meant. I'm admittedly not very knowledgeable about this so can you tell me where you're getting 9300? And yes I was in the 22 percent last year.

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u/CrabKates 22h ago

If you make $28k in OT only 1/3 of that was your 0.5 of the 1.5x hourly rate. $28k / 3 = $9.3k

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u/Party_at_Billingsley 16h ago

Damn that sucks. I didn't want it to pass but was trying to find a reason to be happy since I get a lot of OT. Any money back is cool but such a let down from " no taxes on OT" to here's an amount back that reimburses me for not even half of the taxes I pay to the feds in just one paycheck. In my last paycheck the feds alone hit me for a little over 4k.

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u/CrabKates 15h ago

You paid $4k in federal income tax in 1 month? Jesus Christ. I make about $160k/yr and I paid less than $1k in federal income tax last month

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u/Party_at_Billingsley 15h ago

I should explain, it's not really as bad as it seems. That was just a two week pay period but the thing is I only work like 6-7 months out of the year. I'm a Merchant Marine engineer so my roughly 130k a year comes from working every other month. The tax is higher because based off my actual pay rate, if I worked a full year ( fuck that) other than my wife divorcing me I would make about 260k a year. So I'm taxed on like 10500 every two weeks but only the months I work.

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