What is in the Republican tax plan and spending plan?

Republicans in Congress have proposed a sweeping package of budget cuts and spending reductions that would meet President Donald Trump's demands. However, details are still to be worked out. The Joint Committee on Taxation (JCT) and Congressional Budget Office have estimated the major components of the package as well as the impact on budgets over the next ten years. The list excludes smaller elements from each section.

(Cost: $2.2 trillion) Makes permanent lower income tax rates that were set to expire in Trump's Tax Cuts and Jobs Act of 2017. (Cost: $2.2 trillion)

Increase the standard deduction by $1,000, to $1.500, until 2029. (Cost: $1.3 trillion)

Increases the alternative minimum tax exemption. (Cost: $1.4 trillion)

Increases the Child Tax Credit from $1,000 to $2,500 until 2029 and then keeps it at $2,000, indexes to inflation. (Cost: $797 billion)

Raising the exemption for estate taxes from $14 to $15 million. (Cost: $212 billion)

Increases tax breaks for "pass-through" businesses such as sole proprietorships, LLCs, and partnerships (Cost $809 billion).

Tax breaks extended for multinational corporations. (Cost $174 billion).

Other business tax breaks extended in 2017 TCJA. (Cost: $9 billion)

Tax exemptions on certain tipped income until the year 2029. (Cost: $40 billion)

Tax exemptions on overtime pay through 2029. (Cost: $124 billion)

Tax exemptions on interest payments for loans to domestic autos up until 2029. (Cost: $58 billion)

Contributions to private school scholarship funds are exempt up to $5,000. (Cost: $20.4 billion)

New $4,000 deduction for seniors. (Cost: $72 billion)

Parents can contribute up to $5, 000 tax-free per year to "MAGA accounts" for their children. These funds will be used to pay for education and other expenses when the child reaches adulthood. (Cost: $17.2 billion)

The 2017 TCJA eliminates the personal exemption deduction. (Savings: $1.9 trillion)

Taxpayers can now deduct up $30,000 in state and local taxes, instead of the current $10,000. (Additional revenues relative to the pre-2017 tax codes: $916 billion).

Taxes on private university endowments are raised from 1.4% up to 21%. (New revenue: $22.6 billion)

Ends tax breaks for electric vehicles, clean electricity, green energy. (Savings: $916 billion)

Total cost of tax cuts: $5.6 TRILLION

What's not included is Trump's proposal to increase the top rate of income tax on Americans with the highest earnings.

Trump's proposal to end the "carried-interest" tax breaks for private equity, hedge funds and venture capital managers.

MEDICAID

Adults who are able to work or volunteer, but do not have dependents must spend at least 80 hours per month in school, volunteering or working.

Verification efforts are boosted to ensure that participants and providers of healthcare services are eligible for Medicaid. Blocks regulations which make it easier for people to enroll.

The program excludes non-citizens and penalizes the states who use their own money to cover illegal immigrants.

The regulations requiring minimum staffing in nursing homes and long-term care facilities have been blocked.

Funding for gender-transition therapies for minors is prohibited.

Prohibit payments to large providers such as Planned Parenthood who specialize in birth control and reproductive health services.

Limit state taxes on providers used to raise federal contribution.

Total savings: $715 billion. Enrollment will drop at least 7.7 millions people from the current level of 71,000,000 people.

ENERGY & ENVIRONMENT & COMMUNICATIONS

Cancels funding of green-energy grant programmes in the 2022 Inflation Reduction Act. This includes vehicle manufacturing, home energy upgrades, electricity transmission and wind power.

Encourages pipelines, exports of natural gas and exploration.

Rejecting grant programs for electric heavy-duty vehicle purchases

Rejecting grants for reducing air pollution and greenhouse gas emissions.

Rejecting fuel efficiency standards for cars and pickup trucks

More electromagnetic spectrum bands available for communication.

The law prohibits the states from regulating artificial Intelligence.

Total savings: $197 billion

HOMELAND SECURITY

Cost of border wall construction: $46.5 billion

Cost: $6.2 billion. Increase the number of staff at U.S. Customs and Border Protection (Cost: 46,400 employees to 55,000).

Cost: $6.3 billion for surveillance towers, drones, and border-security equipment

Cost: $300 Million)

Total cost: $67 billion

MILITARY

Spending on shipbuilding to increase (Cost: 32 billion dollars)

Air and missile defence (Cost: 24 billion dollars)

Munitions (19,5 billion dollars)

Nuclear Weapons ($12.6 Billion)

Border Security ($5 Billion)

Total cost: $144 billion

FOOD ASSISTANCE

Some of the 41 millions participants in the SNAP program will have to work more hours

In 2028, the federal government will begin to shift some costs to the states.

SAVINGS: 230 billion dollars (Reporting and editing by Andy Sullivan, Bill Berkrot, Alistair Bell).

(source: Reuters)