WSJ Opinion: Potomac Watch The Senate Is Improving the GOP's 'Big Beautiful Bill'
Jun 18, 2025
Kate Batchelder-Odell and Mene Ukwe Barua, both editorial board members at The Wall Street Journal, discuss the evolving tax-and-spending package from Senate Republicans. They highlight the permanence of business deductions aimed at boosting the economy and the new limits on tax-free tips and overtime. The conversation delves into the contrasts between Senate and House versions, focusing on political pressures and potential impacts on Medicaid. The episode also touches on defense reforms, border security funding, and the delicate balance of fiscal responsibility within the GOP.
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Permanence Boosts Economic Growth
- The Senate bill improves by making many business tax deductions permanent, aiding economic growth.
- Permanence provides investment certainty and prevents future costly renegotiations with Democrats.
Permanence Encourages Investment
- Making business expensing provisions permanent encourages long-term investment despite debates over timing.
- Economic uncertainty from tariffs makes permanence vital for business confidence and growth.
Medicaid Provider Tax Crackdown
- Senate clamps down on Medicaid provider taxes, targeting states' schemes to inflate federal funding.
- This promotes fair budgeting and rewards states that avoided exploitative provider tax tactics.