Every House Democrat Just Voted Against These Tax Cuts

This morning the U.S. House of Representatives passed the One Big Beautiful Bill to provide across the board tax relief to American households and businesses. But every Democrat voted against the bill.

No tax on tips: Every Democrat voted to keep taxing tips.

No tax on overtime: Every Democrat voted to keep taxing overtime.

Small business tax cut: Every Democrat voted no.

Expanded child tax credit: Every Democrat voted no.

Expanded tax deduction for seniors: Every Democrat voted no.

Across the board income tax cuts: Every Democrat voted no.

Full business expensing for equipment purchases: Every Democrat voted no.

Full business expensing for new factory construction and updates to existing factories: Every Democrat voted no.

Every House Democrat just voted against the following tax cuts:

Income Tax Cuts: Trump-level Personal Income Tax Brackets Are Permanently Extended — All Across the Board, Every Income Level

The legislation makes permanent the lower personal income tax rates enacted by the 2017 Tax Cuts and Jobs Act.

The plan also provides additional tax relief with an extra inflation adjustment (one year) — reducing income taxes and boosting take-home pay. This one-year boost, however, excludes the top income tax bracket of 37 percent.

Tax Simplification: Doubled Standard Deduction Made Permanent, with an Added Four-Year Increase of $2,000

The current standard deduction, which was doubled in the 2017 tax cuts and currently claimed by 90 percent of tax filers, is made permanent. Starting in 2025, the standard deduction temporarily increases by $2,000 for married couples, $1,500 in the case of a head of household, and $1,000 for individuals. This temporary increase would expire on January 1, 2029.

This means the new standard deduction for 2025 would increase to $16,000 for an individual filer, $24,000 for a head of household, and $32,000 for married couples.

The expanded standard deduction provides tax relief and simplifies household tax preparation.

Expanded Child Tax Credit: $2,000 Child Tax Credit Permanently Extended, With an Additional Four-Year Boost of $500

The current $2,000 Child Tax Credit, claimed by over forty million families, is permanently extended. It temporarily increases to $2,500 per child starting for 2025. This temporary increase expires in 2029, at which point it reverts to the permanent level of $2,000 per child and is pegged to increase with inflation.

Small Business Tax Cut: The Deduction for Qualified Business Income (199a) is Permanently Increased and Extended

The Deduction for Qualified Business Income (199a) for small businesses (partnership, S corporation, sole proprietorship, etc.) is increased from 20 percent to 23 percent and made permanent. Further tax relief is provided by a loosening of the phase in of limitations, and indexes the threshold amounts for inflation for taxable years beginning after 2025.

Death Tax Relief: Expanded and Made Permanent

Permanently increases the Death Tax exemption level to $15 million and indexes it to inflation for taxable years beginning in 2026. The generation-skipping transfer tax exemption is also permanently increased to $15 million and indexed to inflation.

Revives Pro-Growth, 100% Expensing Through 2029

Allows businesses to immediately expense 100 percent of the cost of qualified property acquired on or after January 20, 2025, reviving on of the most pro-growth provisions of the 2017 Tax Cuts and Jobs Act that is phasing out under current law. Without restoration of immediate 100% expensing, businesses were only allowed to immediately expense 40 percent of the cost for 2025 before it was scheduled to fall to 20 percent in 2026. 100 percent expensing is in effect through 2029 under this bill.

Revives Pro-Growth, Research and Development Expensing Through 2029

Allows businesses to immediately deduct domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024, and before January 1, 2030. Under current law, taxpayers are required to deduct research or experimental expenditures over a five-year period while research or experimental expenditures that are conducted outside the U.S. are required to be deducted over a 15-year period.

Restore Pro-growth Interest Deductibility Through 2029

Restores the ability of businesses deducting net interest payments to include depreciation and amortization costs (Section 163(j)) for taxable years beginning after December 31, 2024, and before January 1, 2030. The Tax Cuts and Jobs Act (TCJA) signed into law by President Trump in 2017 allowed businesses to deduct net interest payments against their adjusted taxable income limited to 30 percent of to earnings before interest, taxes, depreciation, and amortization (EBITDA). However, this 30 percent limit tightened in 2022 as the EBITDA standard expired under law. The amount of interest deductions that businesses can take became limited to only using earnings before interest and taxes (EBIT), representing a significant tax increase on firms. Restoring the EBITDA-based interest limitation would create jobs, increases wages and grow GDP by 0.1 percent, according to the Tax Foundation.

New 100% Expensing for New Factories and Qualified Production Property

Allows businesses to immediately deduct 100 percent of the cost of certain new factories, certain improvements to existing factories, and certain other structures. Under current law, businesses must deduct the cost of nonresidential real property over a 39-year period. Any portion of a property that is used for offices, administrative services, lodging, parking, sales activities, research activities, software engineering activities, or certain other functions is ineligible for this benefit.

No Tax on Tips

Delivers on President Trump’s campaign promise of making tipped income tax-free. Beginning in 2025, the bill created a new above-the-line income tax deduction for qualified tips. The deduction is allowed for both employees receiving a W-2 and independent contractors receiving a 1099-K, 1099-NEC, or reported by the taxpayer on Form 4317. To be eligible, an individual must be in a job that traditionally and customarily receives tips. Individuals who meet the existing definition of a “highly compensated employee” are ineligible to receive the deduction. For 2025, the income threshold to be considered a “highly compensated employee” is $160,000. Individuals are required to a work-eligible Social security number to claim the deduction. The deduction is allowed through 2028.

No Tax on Overtime Pay

Creates an above-the-line income deduction for overtime premium pay during a given taxable year, beginning in 2025. As with No Tax on Tips, individuals who meet the existing definition of a “highly compensated employee” are ineligible to receive the deduction and a work-eligible Social Security number is required in order to claim the deduction. Tipped income is excluded from the overtime deduction to ensure there is no double tax benefit provided.

Enhanced Deduction for Seniors

Provides a deduction for seniors (age 65 or older) of $4,000 per eligible filer with a modified adjusted gross income that does not exceed $75,000 for single filers ($150,000 for married filing jointly). The senior deduction is available to both itemizers and non- itemizers. The deduction is allowed for tax years 2025 through 2028.

Repeals the IRS 1099-K Venmo Tax Paperwork Nightmare. Repeals the law imposed by President Biden and congressional Democrats requiring tax paperwork when Americans use third-party payment processors such as Venmo and Paypal. The Biden-era law requires 1099-K paperwork issuance at a mere $600 in total payments in a year, with no transaction threshold, burdening tens of millions of Americans with invasive paperwork. The Republican tax cut bill repeals the Biden provision and restores the previous dollar amount and transaction quantity thresholds, which means 1099-K issuance will only occur when both of two thresholds are met: $20,000 in payments in a single year from the same payer AND 200 transactions in a single year from the same payer. Note: To avoid the political ramifications of the Democrats’ own law, the Biden IRS “delayed” enforcement of the provision while Biden was in office. After Trump won, the Biden-appointed IRS chief declared the 1099-K paperwork nightmare would take full effect in the year 2026 – just in time for the midterm elections – and when voters would assume the nightmare law was imposed by Republicans.

No Tax on Car Loan Interest

Creates an above-the-line deduction of up to $10,000 for qualified passenger vehicle loan interest during a given taxable year starting in 2025. The deduction phases out starting when the taxpayer’s modified adjusted gross income exceeds $100,000 ($200,000 in the case of a joint return). To be eligible, final assembly of the vehicle must occur in the U.S. For the purposes of the deduction, an applicable passenger vehicle also includes all-terrain vehicles and recreational vehicles which the final assembly of which occurs in the U.S. The deduction is allowed through 2028.

Excise Tax Cut on Firearm Suppressors

Completely eliminates the $200 transfer tax on suppressors for firearms.

OpportunityZone Tax Cut – Capital gains tax relief for long-term investment and construction in designated census tracts within all 50 states. This tax cut broadens the Opportunity Zone provision enacted in the 2017 Tax Cuts and Jobs Act. ATR has compiled local news reports on the benefits of Opportunity Zone construction.