U.S. Senate unveils $4.2 trillion 'Trump Tax Cut' reform plan, aims for passage before July 4

The United States Senate disclosed a tax and spending reform plan totaling $4.2 trillion, accelerating efforts to pass the so-called 'Trump tax cut' in line with the legislative deadline set for U.S. Independence Day (July 4) by President Donald Trump.

On the 28th (local time), BlockBeats, a U.S. media outlet specializing in virtual assets (cryptocurrencies), reported, "The U.S. Senate has released a draft tax and spending reform bill worth a total of $4.2 trillion," adding, "The bill is expected to begin voting procedures as early as this weekend, ahead of the legislative deadline (July 4) set by President Trump."

This tax reform draft was prepared after reconciling differences among various factions within the Republican Party. It is reported that disputes over the scale of cuts to medical subsidies and the pace of reducing renewable energy tax benefits have been partially resolved. The bill contains part of President Trump's so-called 'One Big Beautiful Bill (OBBBA)' initiative.

According to the outlet, as a result of compromises with House Republicans, the reform plan includes a provision to temporarily raise the deduction cap for state and local taxes from $10,000 to $40,000 for five years. This measure will only apply for five years, after which the cap will revert to the current standard of $10,000.

Meanwhile, the Senate may begin voting procedures as early as noon on Saturday local time (early Sunday morning KST), and the final vote may take place early Sunday (Monday afternoon KST). The Republican leadership plans to convene House members early next week to process the bill.