U.S. Senate Republicans’ Revised Tax Proposal: Debt Ceiling to Be Raised by $5 Trillion

On June 17, TMTPost reported that U.S. Senate Republicans unveiled a revised version of the tax and healthcare provisions in former President Trump’s multi-trillion-dollar economic plan. The updated bill, which is key to achieving the goal of passing legislation before July 4, expands certain tax benefits and raises the debt ceiling by $5 trillion—an increase from the $4 trillion outlined in the House-approved version.

The new draft largely adheres to the framework of the House bill, as Senate Republican leadership seeks to avoid extended negotiations over its core content. Without further action, the U.S. Treasury may exhaust extraordinary debt-limit measures by mid-August, posing a risk of default.

The draft does not include a finalized agreement on State and Local Tax (SALT) relief. A transitional provision maintains the current $10,000 deduction cap, while lawmakers continue discussions on this politically significant policy. The bill broadly extends the 2017 tax cuts for households and small businesses, which are set to expire at the end of 2025, and introduces additional measures, including the elimination of taxes on tips and overtime pay—proposals made during the presidential campaign.