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The House Ways and Means Committee held a hearing on Tuesday to discuss the so-called "One Big Beautiful Bill," which aims to extend provisions from the Tax Cuts and Jobs Act while introducing new tax breaks for various income types. Committee chair Jason Smith (R-MO) emphasized that the bill fulfills President Donald Trump's promise of "historic tax relief to working families." However, Democrats, led by Ranking Member Richard Neal (D-MA), criticized the bill for potentially worsening inequality and increasing the deficit. Key provisions include making certain tax cuts permanent, increasing the state and local tax deduction cap, and eliminating taxes on tips and overtime pay. The bill is expected to undergo changes in the Senate, with Mark Baran from CBIZ noting: "Congress is finally able to pass a concurrent resolution to unlock the budget reconciliation process." The bill also proposes significant alterations to renewable energy tax credits and the IRS' tax filing programs.
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