Thune still aims for Senate vote today. Senate Majority Leader John Thune (R-SD) is aiming to bring the GOP’s sweeping tax-and-spending bill to the floor today, even as negotiations over the state and local tax deduction (SALT), Medicaid reforms, and energy credits remain unresolved. Key lawmakers are waiting to see final legislative text before deciding how to vote, and a “vote-a-rama” amendment process could delay final passage for days. President Trump has demanded the bill reach his desk by July 4.
Some Republicans are losing patience with the parliamentarian. Some Senate Republicans have expressed frustration at Senate Parliamentarian Elizabeth MacDonough, particularly after she ruled that key Medicaid provisions in the tax bill violate budget reconciliation rules. Sen. Tommy Tuberville (R-AL) and others have called for her removal. Sen. Thune made clear yesterday that he would not overrule her. The parliamentarian ruled that the proposed limitations on Medicaid provider taxes and other health care-related provisions need to be dropped or rewritten. Without those provisions, Republicans would need to find hundreds of billions of dollars in offsets elsewhere.
House GOP resistance grows as Senate reshapes the bill. As the Senate rewrites key parts of the reconciliation bill, some House Republicans say they may oppose the final product. The Senate bill diverges from the House version by softening cuts to clean energy tax credits and deepening Medicaid reductions—moves that could alienate both fiscal hawks and moderates. With the House Freedom Caucus and SALT Caucus expressing concern, Speaker Mike Johnson (R-LA) faces mounting pressure to preserve prior compromises he secured to clear the bill in the lower chamber.
Illinois raises taxes on nicotine products. Starting July 1, Illinois will raise taxes on vaping products, nicotine pouches, cigars, and chewing tobacco to 45 percent—up from 15 percent. Cigarettes will face a separate $1-per-pack increase. State Sen. Javier Loera Cervantes (D-Chicago) says the measure, expected to generate nearly $30 million annually, aims to reduce nicotine use. But industry voices warn the hike may deter smokers from switching to lower-risk alternatives. CBS Chicago has more.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky.