With some changes that could make the House uncomfortable, the Senate unveiled its tax version of Trump's big law

The Senate Finance Committee unveiled its version of the Donald Trump, which contains tax and Medicaid reform, two of the thorniest issues for Republicans within the "One Big, Beautiful Bill." Because of the slim majority he has to contend with, Mike Johnson, speaker of the House of Representatives, encouraged senators to make minimal changes to the legislation.

Mike Crapo (R-ID), chairman of that committee, negotiated for weeks with Republicans to make as few changes as possible compared with Johnson's version. This version advances some fiscal steps and limits funds raised by states through provider taxes.

"The Senate Finance Committee’s portion of the reconciliation bill prevents a more-than $4 trillion tax hike on American families and workers and makes the 2017 Trump tax cuts permanent; delivers additional relief to working families and seniors; powers the economy by restoring and making essential business provisions permanent; and achieves record savings," they noted from the Finance Committee in a statement.

"It delivers additional tax relief to middle-class families still recovering from record inflation under the Biden Administration. It powers the economy by permanently extending critical pro-growth provisions and introduces new incentives for domestic investment, providing certainty for American job creators to spur domestic economic activity and invest in their workers," they added.

The version released with Crapo has things that will upset the two main Republican lobbies in the House: blue-state moderates and fiscal hawks. Indeed, the text proposes a more gradual phase-out of renewable energy tax subsidies, as well as more changes to Medicaid.

As reported by Politico, the legislation "holds the cap on the state and local tax deduction to the current $10,000, far less than the House’s $40,000, though the Senate number is widely considered a placeholder while lawmakers continue to negotiate."

Another contentious point is that it would raise the debt ceiling by $5 trillion, rather than the $4 trillion proposed by the House. This provision further distances the vote from Senators Rand Paul (R-KY) and Ron Johnson (R-WI). Because of their 53-47 majority, Republicans can afford a maximum of three Republican casualties in the Senate.