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Sweeping GOP Tax Plan Aims to Extend Cuts and Simplify Code

Washington, D.C., USA
May 14, 2025 0 Neutral I want money/finance advice
Sweeping GOP Tax Plan Aims to Extend Cuts and Simplify Code

Washington, D.C., USA: Republican lawmakers introduced a sprawling 389-page tax bill they say will extend and expand the cuts initially passed in 2017. The draft revives or broadens individual and corporate rate reductions, while including some tax increases designed to offset part of the cost. New measures would eliminate taxes on overtime pay, raise the deduction limit for state and local taxes, and simplify small business filing. Critics argue the plan heavily favors high earners, although some sponsors highlight middle-class benefits like a no-tax threshold for tips. Passage is uncertain, given the party’s narrow majority and internal disagreements on state tax deductions.

What this means for you:
Check if the proposal expands standard deductions or modifies credits relevant to your income bracket.
If you’re a freelancer or side hustler, see whether the plan simplifies how you report business expenses.
In the meantime, consider a mid-year tax review with an advisor to pivot quickly if any new law passes.

Key Entities

  • US Congress – The federal legislative body reviewing the new GOP tax proposal. Holds power to revise or approve major tax laws.
  • Republican Party – Promoting extended tax cuts and claiming they’ll spur economic growth.
  • SALT Deduction – A US tax provision capping state and local tax deductions. A key point in the debate over fairness for high-tax states.

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