What's in Trump's 'big, booty full' tax bill, from MAGA accounts to SALT deductions

[Yo_Mama_Been_Loggin]

President Trump's tax plans have faced a bumpy road in recent days, with Republican leaders aiming for a vote in the House of Representatives before Memorial Day, even as trillion-dollar pieces of the bill remain up in the air.

A significant boost came on Sunday evening, when the bill won approval from a key congressional committee, an unexpected victory after it hit a hurdle at a House budget hearing on Friday. Four conservative Republicans who had joined with Democrats to stall the bill decided to greenlight it while they kept up pressure for changes.

It’s all part of a grinding process, with more tax amendments likely to address concerns about the level of state and local tax (SALT) deductions. Other pieces of the bill are also under close review, such as the size and shape of Medicaid trims being considered.

Yet the overall framework of the tax plan is getting clearer by the day, with a package slowly moving forward that will cost trillions of dollars and usher in an array of changes from how taxes are paid by households to new business-world provisions.

https://finance.yahoo.com/news/whats-in-trumps-big-beautiful-tax-bill-from-maga-accounts-to-salt-deductions-121553516.html

More debt from the party of fiscal responsibility.

[LetMyPeopleVote]

1. This bill will add $5 trillion to debt which has the credit agencies worried

In 2011, the GOP was responsible for a U.S. credit rating downgrade. In 2023, it happened again. And in 2025, Republicans are again to blame.

Why the latest downgrade of the U.S. credit rating is an embarrassment for Republicans - MSNBC

apple.news/AJEUHJcLzQhO...

— (@oc88.bsky.social) 2025-05-19T14:00:03.209Z

Link to tweet

https://www.msnbc.com/rachel-maddow-show/maddowblog/latest-downgrade-us-credit-rating-embarrassment-republicans-rcna207652

There is still one other ratings agency, however, that hadn’t downgraded the nation’s credit rating — at least, that is, until last week. NBC News reported:

Moody’s Ratings cut the United States’ sovereign credit rating down a notch to Aa1 from the Aaa, the highest possible, citing the growing burden of financing the federal government’s budget deficit and the rising cost of rolling over existing debt amid high interest rates.

In terms of the practical economic impact, neither the 2011 nor the 2023 downgrades did meaningful harm, though as NBC News’ report added, the decision from Moody’s might end up lifting the yield that investors demand in order to buy U.S. Treasury debt and could dampen sentiment toward owning U.S. assets. Time will tell.

But in terms of the political impact, Donald Trump’s White House tried to blame Biden for the developments — a go-to move for this administration — despite the fact that deficits exploded during Trump’s first term and were far smaller under Biden.

Even more interesting, however, was the reaction from House Speaker Mike Johnson. The New York Times noted:

In his appearance on ‘Fox News Sunday,’ Speaker Mike Johnson tried to spin Moody’s recent downgrading of U.S. credit worthiness away from House Republicans’ multi-trillion-dollar spending package and recast it as a product of ‘the Biden spending spree.’ He argued that the inferior credit rating was evidence that ‘emphasizes the very need for the legislation we’re talking about.’

.....This need not be complicated. Moody’s downgraded the United States because of the country’s national debt and fiscal future. The GOP’s reconciliation bill, filled with massive tax breaks, would add nearly $3 trillion to projected budget deficits over the next decade. (As for the idea that there was a “Biden spending spree,” now seems like a good time to remind everyone that government spending has gone up, not down, since Donald Trump returned to power.)

In other words, the fiscal problem that led to the downgrade would get worse because of the Republican’s megabill, which is the opposite of the line GOP leaders have brought to the public.

[LetMyPeopleVote]

2. Mortgage rates cross back over 7% after U.S. credit downgrade

Interest rates are going up due to the credit downgrade and concerns about increase deficits

Mortgage rates cross back over 7% after U.S. credit downgrade www.cnbc.com/2025/05/19/m... #residential #RealEstate #housing

— DeSota Wilson (@desota.bsky.social) 2025-05-19T20:07:57.125Z

https://www.cnbc.com/2025/05/19/mortgage-rates-us-credit-downgrade.html

After several weeks of sitting stagnant, mortgage rates surged higher Monday following Moody’s decision to downgrade the U.S. credit rating.

Bond yields rose after the late Friday announcement, and mortgage rates loosely follow the yield on the 10-year Treasury.

The average rate on the popular 30-year fixed loan hit 7.04% on Monday, according to Mortgage News Daily. That is the highest level since April 11.

“The average mortgage lender had to account not only for the market movement in Friday’s closing minutes, but also to the additional weakness seen this morning. That makes for a fairly big jump, day-over-day, but it does very little to change the bigger picture,” said Matthew Graham, chief operating officer at Mortgage News Daily.

The April surge in mortgage rates did have a direct effect on the housing market, causing it to pull back right in the heart of the usually busy spring season. Pending sales of existing homes in April, counted by signed contracts, dropped 3.2% compared with April of last year, according to Realtor.com.

Homebuilders also noted a steep drop in demand in April. Homebuilder sentiment is now at the lowest level since the end of 2023, according to the National Association of Home Builders’ monthly index.