The $40,000 cap would begin this year, with the same $500,000 income phaseout, and both figures would rise by 1% annually from 2026 through 2033.

U.S. Senate Republicans passed President Donald Trump's massive tax-cut and spending bill on Tuesday by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $3.

WASHINGTON—The GOP’s sprawling tax-and-spending bill narrowly passed the Senate Tuesday, after a tense 26-hour session in which Republican leaders worked to try to win over holdouts.The final package clocked in at 887 pages,