• Treasury Secretary Scott Bessent anticipates Senate passage of the "One, Big, Beautiful Bill" today.
  • The bill, a centerpiece of Trump's tax agenda, drops the controversial "revenge tax" after warnings of job losses and GDP impacts.
  • Approval would mark a major step in extending Trump-era tax reliefs, including No Tax on Tips and cuts for seniors.

Senate Nears Vote on Sweeping Tax Package

U.S. Treasury Secretary Scott Bessent said Thursday he expects the Senate to approve a major tax bill this afternoon, advancing a key piece of President Trump's economic agenda. The legislation, dubbed the "One, Big, Beautiful Bill," has been moving rapidly through Congress as lawmakers work toward a July 4 deadline for final passage.

The bill's path cleared significantly after negotiators removed Section 899—the so-called "revenge tax"—following warnings from economists and business groups that the provision could cost 360,000 jobs and $55 billion in annual GDP. "We think we'll get Senate approval this afternoon," Bessent told reporters, acknowledging the last-minute changes to the package.

What's in the Bill

The legislation represents an expansion of Trump-era tax policies, making permanent several temporary provisions from the 2017 Tax Cuts and Jobs Act. Key elements include:

  • Elimination of taxes on tips and overtime pay
  • New tax relief for seniors
  • Protections for domestic companies against foreign taxation

Market participants have been closely tracking the bill's progress, with some analysts warning that failure to pass could trigger economic disruptions. "Without this package, we risk a sudden stop scenario with job losses and market volatility," Bessent cautioned.

Last-Minute Hurdles

Procedural challenges nearly derailed the bill this week after the Senate parliamentarian ruled against including a Medicaid provider tax overhaul. The removal of the revenge tax—which targeted certain international transactions—came after intense lobbying from business groups and bipartisan concerns about its economic impact.

A senior Treasury official, speaking on condition of anonymity, said the administration remains confident the bill will pass despite these late changes. "The core provisions that matter most to American workers remain intact," the official said.

What Comes Next

If approved by the Senate, the bill would move to the House for final consideration. Passage would represent a significant victory for Republicans ahead of the election season, though concerns persist about the package's long-term fiscal impact following the removal of revenue-raising measures like the revenge tax.

Market reaction has been muted in recent days as traders priced in growing expectations of approval. The S&P 500 held steady in early trading Thursday, up 0.2% as of 10:15 a.m. in New York.