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The House Ways and Means Committee on Monday unveiled a more comprehensive version of its section of the Republicans’ extensive legislative package, dominated by priorities associated with President Donald Trump. This 389-page document sets the stage for an intense debate over the tax provisions embedded in the sweeping bill, which serves as the GOP’s legislative centerpiece.

Among the bill’s most anticipated components is the revision of the state and local tax (SALT) deduction cap. The measure proposes raising the cap from $10,000 to $30,000 for both single and joint filers. However, this increased threshold would begin to phase out for higher income levels. Notably, this proposal falls short of the levels that some key stakeholders had earlier recommended.

Just prior to the bill’s release, a group of moderate Republicans representing high-tax blue states proposed that the SALT deduction cap should be elevated to $62,000 for single filers and $124,000 for joint filers. These lawmakers had rejected an earlier offer to raise the cap to $30,000, making it clear that they considered the figure insufficient.

These moderates were quick to voice their dissatisfaction with the latest proposal. Rep. Nick LaLota (R-N.Y.), a vocal advocate for increasing the SALT cap, made his stance clear, stating, “Still a hell no.”

The SALT deduction cap, originally implemented as part of the 2017 Trump tax cuts, remains one of the most divisive issues in the broader tax reform debate. Republicans from states like New York, New Jersey, and California have been campaigning to raise the cap, while fiscal conservatives, often referred to as deficit hawks, have strongly opposed such changes.

The full text of the legislation had been eagerly awaited since Friday night, when a partial version of the bill was made public. With the committee set to debate and potentially advance the bill during a meeting scheduled for Tuesday at 2:30 p.m. EDT — a session expected to extend into the night — all eyes are now on how the internal disputes will play out.

In addition to modifying the SALT deduction, the legislation includes several other tax-related initiatives that were part of Trump’s campaign promises. These include eliminating taxes on tips and overtime income — though these changes would sunset at the end of 2028 — and offering a temporary exemption on interest payments for car loans, subject to specific conditions.

Another major feature of the bill is the permanent extension of the 2017 income tax rate reductions. The tax rates defined in that law include marginal rates of 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent.

Although some lawmakers had discussed letting the top tax rate expire — which would have caused the highest income bracket to revert to 39.6 percent — this provision was ultimately excluded from the bill. Conservative tax advocacy groups had strongly opposed any such increase, even though Trump reportedly considered it earlier in the week. According to sources, he lobbied against the rate hike in private discussions. Nevertheless, he offered a more ambiguous public stance. In a Truth Social post Friday morning, Trump said he would be “OKAY if they do” increase taxes on the wealthy, though he expressed reservations due to potential political consequences.

As the legislation takes shape, House Speaker Mike Johnson (R-La.) is determined to keep the process moving according to schedule. Johnson aims to pass the full legislative package by Memorial Day and appeared confident when asked about the deadline, saying, “Yes, I think we’re going to meet it.”

Meanwhile, Trump has taken to social media to urge GOP lawmakers to support the bill. On Monday morning, he posted on Truth Social, calling on Republicans to “UNIFY” behind the committee chairmen overseeing the markup process and described the legislation as “GREAT.” He concluded with, “We have no alternative, WE MUST WIN!”

The legislation also proposes increasing the deduction for pass-through businesses from 20 percent to 23 percent. These businesses include sole proprietorships, partnerships, S-corporations, and LLCs, which are typically taxed at the individual income level. Most American businesses fall into this category.

The National Association of Manufacturers (NAM) welcomed this provision. NAM CEO Jay Timmons commented, “For the 96% of manufacturers that are organized as pass-through businesses, this bill is more than policy—it’s a path to growth. It means the ability to buy equipment, hire workers, increase pay and expand operations with greater certainty and confidence.”

However, critics argue that the bill exemplifies a form of trickle-down economics. This theory posits that benefits provided to businesses and wealthy individuals will eventually reach ordinary workers and consumers — a claim often challenged by economists and progressives.

Amy Hanauer, director of the Institute on Taxation and Economic Policy, voiced her concerns, saying, “So far this costly bill appears to double down on trickle down, with huge tax cuts that will further enrich the rich and not much for the rest of us.”

Another provision in the bill temporarily increases the child tax credit to $2,500 through 2028. While that might appeal to a broader group of taxpayers, it is only one part of a larger package that may be contentious in both chambers of Congress.

The committee’s text also proposes a $4 trillion increase to the national debt ceiling — a component that could provoke strong opposition if left unchanged in the Senate. The Senate’s budget resolution has already laid out plans for a $5 trillion ceiling hike, signaling a possible clash ahead.

Several provisions in the bill target climate and renewable energy programs championed by Democrats in their 2022 Inflation Reduction Act. The GOP proposal would eliminate certain renewable energy incentives and drastically cut funding for the Department of Energy’s loan office, which supports the development of low-carbon energy technologies.

Additionally, the bill revokes a grant program designed to reduce air pollution and emissions in underserved communities, directly challenging climate justice initiatives. It also includes clawbacks for various Environmental Protection Agency (EPA) programs, including a $20 billion lending fund aimed at supporting environmentally friendly projects.

The bill also reinstates several business-friendly tax provisions from the 2017 Trump tax law that had since expired. These include immediate expensing for research and development, bonus depreciation, interest deductibility, and key components of the international tax regime. The latter has been a topic of global debate, with alternative proposals emerging from both the United Nations and the Organisation for Economic Cooperation and Development (OECD).

One notably unchanged aspect of the legislation is the preservation of the so-called carried interest loophole. This tax provision allows hedge fund and private equity managers to classify a portion of their earnings as capital gains, which are taxed at lower rates than regular income. Although Trump had criticized this loophole in the past, it remains untouched in the current bill.

As debate begins, the Republican Party faces the dual challenge of aligning internal factions while pushing forward a legislative agenda that remains closely tied to Trump’s economic vision. With deep divisions still unresolved, particularly over SALT and deficit spending, the coming days will determine whether the GOP can present a united front.