US Senate Republicans proposed cutting trillions of dollars in taxes for households and businesses, while cutting health insurance for some low-income Americans and increasing the US deficit in President Donald Trump's iconic economic package. The Senate version of the bill will preserve Trump's tax cuts during his first presidency and add several tax cuts he strongly advocated during the election campaign, including abolishing the tip tax. To offset the resulting tax cuts, the senators proposed abolishing some of the clean energy tax credits and cutting US federal Medicaid program benefit expenses more drastically than the bill passed by the House of Representatives. A few hours after the bill was announced, there was a disagreement within the Republican Party over the scope of Medicaid cuts. “This bill requires a lot of work,” Senator Josh Hawley told reporters on Monday. “It will close hospitals in rural America.” Notably, there are no agreements on state and local tax breaks in the bill, which is one of the most contentious issues lawmakers have faced during negotiations. The draft uses the current $10,000 state and local tax credit cap as a placeholder, and lawmakers are still debating this politically important relief.

US Senate Republicans proposed cutting trillions of dollars in taxes for households and businesses, while cutting health insurance for some low-income Americans and increasing the US deficit in President Donald Trump's iconic economic package. The Senate version of the bill will preserve Trump's tax cuts during his first presidency and add several tax cuts he strongly advocated during the election campaign, including abolishing the tip tax. To offset the resulting tax cuts, the senators proposed abolishing some of the clean energy tax credits and cutting US federal Medicaid program benefit expenses more drastically than the bill passed by the House of Representatives. A few hours after the bill was announced, there was a disagreement within the Republican Party over the scope of Medicaid cuts. “This bill requires a lot of work,” Senator Josh Hawley told reporters on Monday. “It will close hospitals in rural America.” Notably, there are no agreements on state and local tax breaks in the bill, which is one of the most contentious issues lawmakers have faced during negotiations. The draft uses the current $10,000 state and local tax credit cap as a placeholder, and lawmakers are still debating this politically important relief.