What is in the Republican tax plan and spending plan

The Republican-led House of Representatives passed a comprehensive budget package which would meet many of the priorities of President Donald Trump. The Republican-led Senate will now consider the package, and it is likely that significant changes will be made.

The Congressional Budget Office and the Joint Committee on Taxation have provided cost estimates for the main elements of the package.

CBO estimates that the bill will add $2.4 trillion over ten years to the $36.2 trillion debt, reduce revenues by 3.67 trillion and reduce spending by $1.25 billion. Changes to Medicaid and other programs would result in an increase of 10.9 million people without health coverage over the next decade.

Tax Breaks and Tax Cuts

(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)

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

(Cost: $1.3 trillion) Increases the standard deduction by $1,000 up to $1,500. (Cost: $1.3 trillion)

Increases the tax breaks for "pass-through" business owners, including sole proprietorships, LLCs and partnerships. (Cost: $809 billion)

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)

Extends tax benefits for multinational corporations. (Cost: $174 billion)

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

Creates new $4,000 deductions for seniors. (Cost: $66 billion)

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

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

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

Parents can contribute up to $5k tax-free per year to "Trump Accounts", which they can use to pay for their child's education and other expenses when they become adults. (Cost: $17.2 billion)

Taxpayers can now deduct up $40,000 in state and local taxes (SALT), up from the current $10,000. Benefits will gradually be phased out for households earning more than $500,000. This would save $787 billion in comparison to an alternative scenario where there were no limits on this deduction.

Other Tax Changes

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

Imposes a 5% new tax on money sent home by immigrants. (New revenue of $22.2 billion) Removes firearm silencers from the national registry and eliminates taxes on their sales. (Cost: $1.4 billion)

Tax on firearms manufacturers is eliminated

Gives the government power to end the tax-exempt status of "terrorist-supporting organizations."

MEDICAID

Adults who are able-bodied and do not have dependents must work, volunteer or attend school for at least 80 hours per month beginning in 2027.

The verification process is strengthened to ensure that participants and healthcare providers can participate. Rules that facilitate enrollment are removed.

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

The regulations that require 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 Medicaid cut: $785 billion

Other Health

Restriction of health benefits for certain immigrants. (Savings: $117 billion)

Increases eligibility requirements for Affordable Care Act Exchange coverage. (Savings: $82 billion)

ENERGY & ENVIRONMENT - COMMUNICATIONS

Tax breaks for electric cars are no longer available.

Tax breaks for green and clean energy are no longer available.

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.

HOMELAND SECURITY

Construction of border walls

Other border-security equipment includes surveillance towers, drones, and other border security equipment

Staffing of U.S. Customs and Border Protection increased from 46,400 employees to 55,000.

Protection of the President by law enforcement

Reimburse the states for border security costs.

Total cost: $79 Billion

IMMIGRATION & JUSTICE

Imposes new fees up to $5,000 on immigrants' work permits and court hearings.

The funding will be used to hire 10,000 additional immigration enforcement officers and fund 1 million deportations.

Additional funds are provided to government agencies for the investigation of visa fraud, criminal background checks, DNA testing and supervision of unaccompanied children.

The federal courts are prohibited from issuing contempt citations against the government for injunctions and temporary restraining order.

Total savings of $110 billion

MILITARY

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

Air and missile defence (Cost: 24 billion dollars)

Munitions (Cost : $19.5 billion).

Nuclear weapons (Cost : $12.6 billion).

Cost: $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 of $238 billion

EDUCATION

Changes to student loan repayment plans: Savings of $295 billion

Limits on student loans (savings of $51 billion).

Restrictions on eligibility for Pell Grants

Limits on the government's cancellation of student debt (Savings : $32 billion).

Total savings: $349 Billion (Reporting and editing by Andy Sullivan, Bill Berkrot Alistair Bell Andrea Ricci Rod Nickel

(source: Reuters)