House Republicans on Monday rolled out a sweeping tax package closely aligned with former President Donald Trump’s campaign promises—featuring tax breaks for tips, overtime pay, Social Security benefits, and car loan interest. But the proposed cuts come at a steep price: at least $4.9 trillion in projected revenue losses, partially offset by significant reductions to Medicaid, food assistance, and green energy programs.

Dubbed “THE ONE, BIG, BEAUTIFUL BILL” in a nod to Trump’s signature rhetoric, the legislation aims to extend and expand tax breaks from Trump’s first term. Key provisions include increasing the standard deduction, boosting the child tax credit, raising the estate tax exemption, and introducing new deductions targeted at working-class Americans, such as service industry workers and car buyers.

One major change would triple the deduction for state and local taxes (SALT) from $10,000 to $30,000 for married couples—an attempt to appease lawmakers from high-tax states like New York and California, though some GOP members say the increase is still too small.

Meanwhile, private universities could face a new 21% tax on endowments, reflecting a growing Republican pushback against elite institutions. Another controversial provision would revoke the tax-exempt status of organizations the State Department designates as supporting terrorism, a move critics fear could be used to target political adversaries.

The package is shaping up to be Congress's most significant tax and spending debate since 2017, when Trump’s first major tax cuts passed but efforts to repeal the Affordable Care Act failed. The full cost of the new proposal could soar far beyond the current $4.9 trillion estimate once all elements are accounted for.

Key Tax Breaks and Changes:

Standard Deduction: Increases by $2,000 to $32,000 per household.

Child Tax Credit: Rises from $2,000 to $2,500 for four years.

Estate Tax Exemption: Jumps to $15 million, with future increases tied to inflation.

Tip Income: Deductible under Trump’s “no tax on tips” pledge.

Car Loan Interest: Deductible up to $10,000 for U.S.-assembled vehicles (expires after Trump’s term).

Social Security Income: $4,000 deduction for seniors below $75,000 in income ($150,000 for couples).

Still, internal GOP divisions are emerging. Senator Josh Hawley (R-Mo.) criticized proposed Medicaid cuts, calling them "morally wrong and politically suicidal."

“If we want to be a working-class party, we must reject calls to slash Medicaid,” Hawley wrote in a New York Times op-ed. “America’s promise should be for working people.”

Proposed Spending Cuts:

Medicaid: Up to $880 billion in reductions, with stricter work requirements and biannual eligibility verification.

SNAP (Food Stamps): $290 billion in cuts, raising work requirements to age 64 and expanding requirements for parents of children over age 7.

Green Energy: Rollbacks to clean energy incentives from the Inflation Reduction Act.

University Endowments: New 21% tax for some private institutions.

Civil Society Organizations: Risk losing tax-exempt status based on foreign policy criteria.

The legislation also adds new work requirements for older Americans and parents, and limits food assistance waivers to areas with unemployment rates above 10%. States would also be required to cover a larger share of SNAP costs beginning in 2028.

Despite mounting opposition from both parties—over the costs, Medicaid cuts, and the growing federal deficit—House Republicans are pushing to pass the bill by Memorial Day under Speaker Mike Johnson’s leadership. Public hearings begin Tuesday, with lawmakers scrambling to finalize the 389-page tax section and stitch together the full package.

Texas Rep. Chip Roy warned that the actual price tag could balloon to $20 trillion over the next decade if the package goes unchecked.

“I’m not here to add $20 trillion in debt,” he posted on social media, calling for a backup plan.

Still, Trump is doubling down.

“Republicans need to UNIFY,” Trump posted before departing for a trip to the Middle East. “The Bill is GREAT. We have no alternative, WE MUST WIN!”