Sources say Johnson is close to solving one of the thorniest problems in the “big, beautiful bill.”

House Republicans could land on a compromise on the state and local tax deduction on Wednesday, a deal that would represent a breakthrough in one of the thorniest policy debates in President Donald Trump’s economic package.

Lawmakers bickered, protesters shouted and senators came to take in the moment as a House committee weighed a critical portion of a bill to enact President Trump’s domestic agenda.

Their unwieldy bill may get even worse as it gets closer to becoming law

For as long as Americans have paid federal income taxes, they’ve been able to subtract some of what they pay to their state and local governments from their taxable income. This federal deduction for state and local taxes — the SALT deduction, for short — has a big influence on how the tax burden is divided. It tends to help taxpayers in wealthier, more urban states, where sales taxes are higher and real estate costs more. President Donald Trump’s first-term tax law, approved in 2017, capped the

Republicans on Capitol Hill seem unlikely to challenge President Trump as he pushes ethics guardrails around profiting from the presidency to the breaking point.

The proposal would eliminate popular tax credits for electric vehicles and home solar.

“What he said today is meaningless,” Barrasso said.

It’s not doomsday

Shares in US solar companies jumped after House Republicans released a draft of a tax bill that went easier on many players in the sector than analysts had expected. The lawmakers also proposed eliminating a production tax credit for hydrogen, sending Plug Power Inc. stock lower.

Millions of Americans could lose health care coverage under a long-awaited proposal unveiled by U.S. House Republicans Sunday night that would slash $880 billion in federal Medicaid spending.

The House Committee on Energy and Commerce has proposed phasing out tax credits associated with climate policies in the Inflation Reduction Act, aiming to redirect $6.5 billion in funds and sparking debate over energy priorities.

Republicans injected some populist elements to their latest draft plan for Donald Trump’s tax cuts, while stopping short of embracing a progressive move the president recently endorsed and failing to silence critics that it ultimately puts the rich ahead.

Republicans want to save billions through Medicaid work requirements. Millions could lose coverage