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An updated GOP tax bill has been approved, as several House Republican deficit hawks serving on the House Budget Committee allowed the legislation to pass late Sunday night.

Reps. Ralph Norman (R-S.C.), Chip Roy (R-Texas), Andrew Clyde (R-Ga.), and Josh Brecheen (R-Okla.), all of whom had voted to block the bill’s passage last Friday, provided the votes needed to advance the legislation during the May 18 session.

The four legislators voted present in the May 18 committee meeting, which allowed the bill to head to the House Committee on Rules for markups and changes this week before a full House of Representatives vote on the legislation due in the coming weeks.

Changes to the bill from the weekend-long negotiations include adjusting Medicaid requirements and reducing green energy incentives.

“Tonight, after a great deal of work and engagement over the weekend, the Budget Committee advanced a reconciliation bill that lays the foundation for much needed tax relief, border security, and important spending reductions and reforms,” Roy stated in a late Sunday night <a href="https://x.com/chiproytx/status/1924296387040080036?s">X post</a>. “Importantly the bill now will move Medicaid work requirements forward and reduces the availability of future subsidies under the green new scam.”
<h2><strong>Key Bill Provisions</strong></h2>
The Budget Committee vote gave the House GOP and President Donald Trump some momentum this week as Republican legislators aim for a pre-Memorial Day vote on the bill.

Among other provisions, the legislation would make the 2017 Tax Cuts and Jobs Act (<a href="https://taxfoundation.org/tags/tax-cuts-and-jobs-act-tcja/">TCJA</a>) permanent, expand the standard reduction, and boost the child tax credit, which would fall from $2,000 to $1,000 by year-end if left unaddressed. The bill also includes a tip and overtime tax cut through 2028 and creates a $4,000 tax deduction for U.S. seniors, but does not include Social Security tax cuts.

As the budget package, which Trump calls “the one big beautiful bill,” continues to face all the necessary legislative hurdles this week, here are five key elements to keep an eye on.
<h2><strong>1. Boosting the Standard Deduction</strong></h2>
The legislation calls for a hike in the standard deduction from 2025 to 2028, as follows:
<ul>
 	<li>Single taxpayers would see their standard deduction rise from $15,000 to $16,000</li>
 	<li>Head of households would see the deduction rise from $22,500 to $24,000</li>
 	<li>Married couples filing jointly would increase from $30,000 to $32,000</li>
</ul>
For example, starting i<span style="color: #000000;">n the 2025 tax year, a single tax filer making $75,000 annually would subtract $16,000 from their income lowering their taxable income to $59,000 under the proposed bill.</span>

The bill also extends the $2,000 Child Tax Credit, which would have otherwise fallen to $1,000 by 2026 if no action was taken. The House GOP also calls for a temporary three-year boost to the Child Tax Credit, from $2,000 to $2,500.
<h2><strong>2. No Social Security Tax Cuts</strong></h2>
Although Trump campaigned to eliminate taxes on Social Security benefits, this provision is absent from the House GOP bill.

“The exclusion is likely due to the Byrd Rule, which restricts what can be included in budget reconciliation bills, particularly provisions that don’t directly affect the federal budget,” said Zachary Hellman, owner at Tax Prep Tech in Los Angeles, via email to NTD. The bill does propose a $4,000 enhanced standard deduction for seniors earning under $75,000, which would provide some relief to qualified retirees.
<h2><strong>3. Addressing Workplace Taxes</strong></h2>
The bill makes tips tax-free by allowing a deduction for "Qualified Tips," defined as any tip received by an individual in an occupation that traditionally and customarily received tips on or before December 31, 2024.

The bill also makes overtime pay tax free, although not for "highly compensated" taxpayers, which is currently defined as anyone making more than $160,000 per year.

Scott Caufield, a registered investment adviser at Sophos Wealth Management in Woodinville, Washington, told NTD via email that given voter support for no tax on tips or overtime, and how often Trump promoted the ideas on the campaign trail, that the provisions “are likely to pass" to a final House vote.
<h2><strong>4. No More 1099-K Reporting Mandate</strong></h2>
The legislation also removes a controversial IRS measure that required any U.S. taxpayer receiving over $600 via digital payment platforms like Venmo or PayPal to report the income on IRS tax form 1099-K. Prior to that rule, payment service recipients only had to report income if they received over 200 digital payments worth more than $20,000 in payments.
<h2><strong>5. Likely Democrat Reaction</strong></h2>
Moving forward to the House Rules Committee vote and the ensuing full House vote by the end of the month, Hellman believes Democrats are likely to oppose provisions they view as favoring the affluent, such as the permanent extension of the 2017 tax cuts and the elimination of green energy credits. He says they're also <span style="color: #000000;">likely to object to proposed cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which impact low-income earners.</span>

Additionally, if the bill passes, it’s likely that the more controversial provisions, such as the tax breaks for gun silencers and the elimination of green energy credits, will be removed or modified. “The core elements, such as the extensions of the 2017 tax cuts and the new deductions for tips, overtime, and seniors, are more likely to remain, especially if they garner bipartisan support,” Hellman added.

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