Marco’s bill

Would have earned

A start.

Senate vote: 46-54, failed
Closed: $207B (10.4%)
After: $1.79T
Posted: Nov 10, 2026

Scored against the Incoming Senate (120th Congress, seated Jan 3, 2027). Roster incoming-v1, data fy2026-v7.

The bill limits the mortgage interest and SALT deductions, taxes carried interest as ordinary income, raises the corporate rate to 25 percent, taxes unrealized gains at death above $2 million, and creates a $25 per ton carbon fee.

Back to the Hall of Almost

The bill

Section 1. Cap the mortgage interest deduction at loans of $500,000 and eliminate it for second homes. Section 2. Repeal the state and local tax deduction for households with income over $400,000. Section 3. Tax carried interest as ordinary income. Section 4. Raise the corporate income tax rate from 21 percent to 25 percent. Section 5. Treat capital gains at death as realized income above a $2 million exemption. Section 6. Create a carbon fee of $25 per ton of carbon dioxide, rising 2 percent above inflation each year.

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Roll call

Yes 46Need 51No 54

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Two tiles per state, one per senator. Read-only.

Before and after

Before

Revenue

$5.40T

Spending

$7.40T

After

Revenue

$5.60T

Spending

$7.39T

Individual income taxes
Payroll taxes
Corporate income taxes
Customs
Other revenue
Social Security
Medicare
Medicaid
Defense
Net interest
Veterans
Income security
Federal workforce
Health
Domestic programs

Deficit$1.79T

The hole: $1.99T. One block = 5% of it.

What it changed

Line	Before	After	Change
Revenue
Individual income tax: wages and ordinary income	$2.45T	$2.47T	+$20B
Individual income tax: capital gains and dividends	$394B	$421B	+$27B
Corporate income tax	$382B	$430B	+$48B
Excise taxes	$95B	$200B	+$105B
Spending
Net interest on the debt	$1.16T	$1.15T	−$7B

How each part scored

Cap mortgage interest deduction at $500,000 loans and end it for second homes+$8B per year on Individual income tax: wages and ordinary income
Full repeal is about $30B/yr, and a $500K cap plus second-home repeal captures roughly a quarter of that, since the current $750K cap is already in the baseline. Confidence 45%.
Repeal SALT deduction for households over $400,000 income+$12B per year on Individual income tax: wages and ordinary income
Full repeal of the $40K-capped SALT deduction is about $60B/yr, and the cap and the phase-down for incomes above $500K in current law leave only a modest share of the benefit among households over $400K. Confidence 40%.
Tax carried interest as ordinary income+$2B per year on Individual income tax: capital gains and dividends
Standard reference estimate of about $2B/yr. Confidence 60%.
Raise corporate rate from 21% to 25%+$48B per year on Corporate income tax
About $12-13B per point, reduced slightly for behavioral response across 4 points. Confidence 65%.
Tax capital gains at death above $2 million exemption+$25B per year on Individual income tax: capital gains and dividends
Full step-up repeal raises $30-40B/yr, and the $2M exemption and phase-in reduce it somewhat. Confidence 50%.
Carbon fee of $25 per ton rising 2% above inflation+$105B per year on Excise taxes
Follows the reference estimate of $100-120B/yr with no revenue rebates. Confidence 55%.