Main Street Business #581 Breaking News - Senate Tax Bill Text Released
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Jun 20, 2025 A deep dive into the newly released Senate tax bill reveals significant differences from the House proposal. Key topics include expiring tax provisions and the debate over the SALT deduction. Also discussed are changes to the standard deduction, child tax credit, and tax implications for tips and overtime. The conversation emphasizes small business benefits from new tax breaks and the urgency of legislative action before 2026. Tune in to understand which changes could impact your wallet the most!
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Standard Deduction Changes
- The standard deduction doubled in 2017 but is set to be cut in half in 2026 if no bill passes.
- Both House and Senate bills increase it again significantly, protecting middle-income taxpayers from higher taxable income.
Income Tax Brackets Impact
- The 2026 expiration of current tax brackets would raise rates 2-4% for most taxpayers.
- Both House and Senate bills seek to make lower, favorable rates permanent with a 37% top bracket, benefiting middle earners.
Child Tax Credit Differences
- Child tax credit drops from $2,000 to $1,000 per child in 2026 without legislation.
- House bill raises it to $2,500 temporarily, Senate to $2,200, both better than nothing, benefiting families either way.