Senate tax bill less populist, more supply-side than House version

The Senate's version of the One Big Beautiful Bill Act tax legislation is less populist and more aligned with traditional supply-side economics than the House version. Key differences include a smaller increase to the child tax credit and permanent business investment tax breaks, contrasting with the House bill's temporary provisions. While the Senate bill incorporates some populist and MAGA priorities, it leans more towards Republican orthodoxy. Experts note the Senate version pares back more populist elements and emphasizes traditional Republican goals like permanent business investment incentives. The Senate bill permanently allows immediate deduction of domestic research and development costs and full expensing for new capital investment, unlike the House version which sunsets these by 2029. Both versions aim to make provisions of the 2017 Tax Cuts and Jobs Act permanent, but the Senate bill adheres more closely to the original act's spirit. The Senate legislation also scales back populist measures from the House, such as a smaller child tax credit boost and limitations on provisions like tax-free tips and overtime. Additionally, the Senate bill's approach to taxing university endowments is less aggressive than the House version. These differences highlight a divergence in approach between the House and Senate, with the Senate prioritizing long-term business investment incentives and broader tax base principles over more immediate populist appeals.