The ‘Big, Beautiful Bill’ may face major changes when the Senate begins debate next week.
Look for Senate Republicans to pare down state and local tax deductions—known as SALT—which are important to House Republicans from California and New York.
Almost no Senate Republicans care about SALT. Rep. Mike Lawler, R-N.Y., says he’d oppose the bill if the Senate strips SALT.
Fiscal hawks want further Medicaid changes to achieve additional savings, but Sens. Josh Hawley, R-Mo., and Jim Justice, R-W.Va., represent states with high percentages of their constituents on Medicaid.
Sen. Thom Tillis, R-N.C., wants to alter the no-tax-on-tips provision, arguing it’s unfair to workers outside tipped industries.
The Senate may also cut House provisions on AI and federal judges, as these policy issues don’t comply with special Senate budget rules.