MSNBC’s The Weekend, hosted by Symone Sanders, Alicia Menendez, and Michael Steele, opened their show with House Minority Leader Hakeem Jeffries (D-NY), who was invited to discuss a Republican tax bill. Jeffries reiterated Democrat talking points and propaganda, claiming the bill would slash Medicaid by an estimated $715 billion, killing people and endangering children, families, seniors, and Americans with disabilities. He argued it prioritizes tax breaks for wealthy Trump donors, such as Elon Musk, over everyday Americans.
Symone Sanders referred to it as “the bill that Republicans in the House of Representatives have put out from the Ways and Means Committee,” asking Jeffries for his reaction and whether it aligned with expectations from his Republican colleagues. This must be the American Relief Act of 2025, a 389-page reconciliation tax bill introduced by House Republicans through the Ways and Means Committee on May 12, 2025, under the FY 2025 budget resolution (H.Con.Res.14), often referred to by media as “The 2025 GOP Tax Bill” or part of the “One, Big, Beautiful Bill.”
Contrary to Jeffries’ claims, the American Relief Act of 2025 focuses on tax relief provisions and does not cut Medicaid funding.
Jeffries stated:
“Donald Trump and House Republicans promised that they were gonna lower the high cost of living in the United States of America. They of course have failed to do that. Costs aren’t going down, they are going up, so that’s a broken promise. Instead, they are trying to enact one of the largest healthcare cuts in American history, if not the largest. At this point, it looks like $715 billion in cuts to Medicaid that will devastate children, families, and seniors, and everyday Americans with disabilities. Hospitals could close, nursing homes could shut down, and the reality is, because of this House Republican bill, if it were to pass and become law, PEOPLE WILL DIE. And this is all being done in service of trying to provide a massive tax break to MAGA billionaire donors like Elon Musk, and give almost nothing to everyday Americans that Donald Trump and House Republicans promised they would focus on when they lied repeatedly on the campaign trail last year.”
Contrary to Jeffries’ claims that the American Relief Act of 2025 prioritizes tax breaks for billionaires, and offers little for everyday Americans, the bill includes several provisions aimed at broad-based tax relief and economic growth:
No Tax on Overtime Pay and Tips: Eliminates federal income taxes on overtime pay for eligible workers and tips for service industry employees, such as restaurant and hospitality workers. This increases take-home pay for working-class Americans, directly supporting their financial well-being.
Extension of the 2017 Tax Cuts and Jobs Act (TCJA): Extends the TCJA, which boosted after-tax income for 65% of households by 1–2% and drove 2.5% annual GDP growth from 2017–2019. By preventing tax hikes scheduled for 2025, it maintains lower individual and corporate tax rates, benefiting millions of families and businesses.
Elimination of Tax on Car-Loan Interest: Removes taxes on car-loan interest, reducing vehicle ownership costs for middle-class borrowers, particularly in regions where cars are essential for work.
Increased State and Local Tax (SALT) Deduction: Raises the SALT deduction cap from $10,000 to $30,000 for households earning under $400,000. This provides tax relief to middle-class homeowners in high-tax states like New York and California.
Support for Small Businesses: Extends TCJA’s pass-through deductions for small businesses, fostering entrepreneurship and job creation.
Economic Growth and Job Creation: Delivers $4.5 trillion in tax cuts over 10 years, as directed by H.Con.Res.14, to stimulate investment and jobs. The TCJA’s precedent of boosting corporate investment suggests these cuts will drive economic activity, benefiting workers across income levels.
“MAGA” Savings Account: For kids under 8, providing a $1,000 government deposit and allowing up to $5,000 in annual tax-free parental contributions, locked until age 18 for wealth-building.