U.S. President Donald Trump has stepped up efforts to get Congress to pass his ambitious tax plan, known as the “One Big Beautiful Bill Act,” before July 4, the country’s Independence Day holiday.
This bill seeks to implement a series of tax cuts and adjustments in public spending in order to stimulate the economy and strengthen national security.
Main proposals of Trump’s tax plan
The “One Big Beautiful Bill Act” contemplates several key measures:
Elimination of taxes on tips and overtime: It is proposed to exempt tips and overtime from federal taxes, benefiting workers in sectors such as hospitality and commerce.
Social Security tax exemption for seniors: Retirees would no longer pay taxes on Social Security benefits, increasing their net income.
Increase in the state and local tax (SALT) deduction limit: The current $10,000 limit would be raised to $40,000 through 2029, with adjustments for inflation, which would benefit taxpayers in states with high local taxes.
Increased defense and border security spending: Additional funds would be allocated to strengthen the armed forces and improve security along the southern border.
Controversies and opposition
Despite having a Republican majority in both houses, the bill faces opposition from both Democrats and some moderate Republicans. The main concerns include:
Impact on the fiscal deficit: The Congressional Budget Office estimates that the plan could increase the deficit by $2.4 trillion over the next decade.
Cuts in social programs: Cuts in Medicaid and the Supplemental Nutrition Assistance Program (SNAP) are proposed, which could affect millions of low-income people.
Remittance tax: The bill includes a 3.5% tax on remittances sent abroad, a measure that has generated criticism, especially from Latin American countries.
Affecting Hispanics
The Hispanic community could be particularly affected by some of the plan’s provisions:
Remittance tax: Many Hispanics send money back to their home countries; this tax would reduce the amount received by their families.
Cuts to social programs: Cuts to Medicaid and SNAP could impact Hispanic families who rely on these services.
Es recomendable que los miembros de la comunidad hispana se informen sobre cómo estas medidas podrían afectarlos y consulten con asesores fiscales o legales para prepararse adecuadamente
What’s next?
Buzzy
The Senate plans to vote on the bill this weekend.
If passed, the House of Representatives must review and reconcile any changes before sending it to President Trump for his signature.
The president has emphasized the importance of passing the law before July 4, considering it a celebration of independence and a significant achievement of his administration.
Find out more at ‘QueOnnda.com’.
