Core Points - The U.S. House Ways and Means Committee has passed a significant tax cut plan aimed at businesses, families, and small businesses, marking a crucial step towards formal legislation of Donald Trump's economic policy [1] - The plan includes a permanent extension of the personal income tax cuts initiated in 2017, reducing the top income tax rate to 37% [1][2] - The proposal aims to address the SALT deduction controversy, with a suggested increase of the deduction cap from $10,000 to $30,000, although high-income earners may gradually lose eligibility [2][3] Group 1 - The tax cuts will be effective from this year until 2028, coinciding with Trump's presidential term [2] - The plan includes various corporate tax cuts, such as extending tax deductions for profits, loan expenses, equipment investments, and R&D costs [2] - The bill proposes to increase the child tax credit from $2,000 to $2,500 temporarily and expands the eligibility for health savings accounts [3] Group 2 - The House plans to vote on the bill next week, with Republicans aiming to pass it in the Senate without Democratic support before presenting it to Trump [4] - The nonpartisan Joint Committee on Taxation predicts that the tax provisions will increase the federal deficit by $3.8 trillion over the next decade [3] - The bill will eliminate several renewable energy tax incentives introduced by President Biden to offset the revenue loss from tax cuts [3]