As negotiations ramp up for President Donald Trump‘s tax agenda, there are key issues to watch, according to policy experts.   

The House Ways and Means Committee, which oversees taxes, released a preliminary partial text of its portion of the bill on Friday evening. However, the bill could change significantly before the final vote. The full committee will debate and advance this legislation on Tuesday.

With control of the White House and both chambers of Congress, Republican lawmakers can pass Trump’s package without Democratic support via a process known as “reconciliation,” which bypasses the Senate filibuster with a simple majority vote.

But reconciliation involves multiple steps, and the proposals must fit within a limited budget framework. That could be tricky given competing priorities, experts say. 

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“The narrow [Republican] majority in the House is going to make that process very difficult” because a handful of votes can block the bill, said Alex Muresianu, senior policy analyst at the Tax Foundation.

Plus, some lawmakers want a “more fiscally responsible package,” which could impact individual provisions, according to Shai Akabas, vice president of economic policy for the Bipartisan Policy Center.

As negotiations continue, here are some key tax proposals that could impact millions of Americans.

“The child tax credit is one that we’re watching very closely,” Akabas said. “There’s a lot of bipartisan agreement on preserving and hopefully expanding that.”  

TCJA temporarily increased the maximum child tax credit to $2,000 from $1,000 per child under age 17, and boosted eligibility. These changes are scheduled to sunset after 2025.

The House in February 2024 passed a bipartisan bill to expand the child tax credit, which would have boosted access and refundability. The bill didn’t clear the Senate, but Republicans expressed interest in revisiting the issue.  

The early House Ways and Means text proposes expanding the maximum child tax credit to $2,500 per child for four years starting in 2025.

Another TCJA provision — the $10,000 limit on the deduction for state and local taxes, known as “SALT” — was added to the 2017 legislation to help fund other tax breaks. That provision will also expire after 2025.

Before the change, filers who itemized tax breaks could claim an unlimited deduction for SALT. But the so-called alternative minimum tax reduced the benefit for some higher earners. 

Repealing the SALT cap has been a priority for certain lawmakers from high-tax states like California, New Jersey and New York. In a policy reversal, Trump has also voiced support for a more generous SALT deduction. 

“If you raise the cap, the people who benefit the most are going to be upper-middle-income,” since lower earners typically don’t itemize tax deductions, Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, previously told CNBC.

The SALT deduction was absent from the preliminary House Ways and Means text. But Congressional negotiations are ongoing.

On top of TCJA extensions, Trump has also recently renewed calls for additional tax breaks he pitched on the campaign trail, including no tax on tips, tax-free overtime pay and tax-exempt Social Security benefits. These ideas were not yet included in the early House Ways and Means text.  

However, there are lingering questions about the specifics of these provisions, including possible guardrails to prevent abuse, experts say.

For example, you could see a questionable “reclassification of income” to qualify for no tax on tips or overtime pay, said Muresianu. “But there are ways you could mitigate the damage.”

As Republicans wrestle with funding their massive spending and tax package, President Donald Trump is eyeing a possible tax hike for the highest earners.

The idea, which lacks Republican support, could return the top federal income tax rate to 2017 levels for some of the wealthiest Americans.  

In a phone call Thursday, NBC reported, Trump pressed House Speaker Mike Johnson, R-La., to raise the top income tax rate on the wealthiest Americans and close the so-called carried interest loophole. The proposal would revert the 37% rate to 39.6% for individuals making $2.5 million or more per year, to help preserve Medicaid and tax cuts for everyday Americans.

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Trump on Friday expressed openness to the tax hike on the wealthiest Americans in a Truth Social post, noting he would “graciously accept” the tax increase to “help the lower and middle income workers.”

“Republicans should probably not do it, but I’m OK if they do!!!” he wrote.

Enacted by Trump, the Tax Cuts and Jobs Act, or TCJA, of 2017 created sweeping tax breaks for individuals and businesses. Most will sunset after 2025 without an extension from Congress.

The TCJA temporarily dropped the highest income tax rate from 39.6% to 37%. For 2025, the 37% rate kicks in for single filers once taxable income exceeds $626,350.    

If signed into law, a top 39.6% income tax rate would return wealthy taxpayers to pre-TCJA levels from 2013 to 2017. Before that, the top rate was 35% during most of the early 2000s, according to data collected by the Tax Policy Center. The highest top rate was 94% from 1944-1945.

However, this data doesn’t reflect how much income was subject to top rates or the value of standard and itemized deductions during these periods, the organization noted.

Lawmakers face “a pretty simple math issue,” with many proposals not covering the cost, Yale Budget Lab president and law professor Natasha Sarin told CNBC’s “Squawk Box” on Friday.   

“We’re not getting anywhere close to the type of revenue increases we need,” she said.

Some Americans believe real estate and gold are the best long-term investments. Advisors think that’s misguided.

About 37% of surveyed U.S. adults view real estate as the best investment for the long haul, according to a new report by Gallup, a global analytics and advisory firm. That figure is roughly unchanged from 36% last year. 

Gold was the second-most-popular choice, with 23% of surveyed respondents. That’s five points higher than last year. 

To compare, just 16% put their faith in stocks or mutual funds as the best long-term investment — a decline of six percentage points from 2024’s report, Gallup found.

The firm polled 1,006 adults in early April.

Financial advisors caution that this preference is likely more about buzz than fundamentals. Be careful about getting caught up in the hype, said certified financial planner Lee Baker, the founder, owner and president of Claris Financial Advisors in Atlanta.

Carolyn McClanahan, a CFP and founder of Life Planning Partners in Jacksonville, Florida, agreed: “People are always chasing what’s hot, and that’s the stupidest thing you could do.”

Here’s what investors need to know about gold and real estate, and how to incorporate them in your portfolio.

“You buy a house, you can see it, feel it, touch it. Your investment in stocks perhaps doesn’t feel real,” said Baker, a member of CNBC’s Financial Advisor Council.

While the preference for gold grew this year, the share of Gallup respondents who think it’s the best long-term investment is still below the record high of 34% in 2011. Back then, gold investors sought refuge amid high unemployment, a crippled housing market and volatile stocks, Gallup noted.

Gold prices have been trending upward this spring. Spot gold prices hit an all-time high of above $3,500 per ounce in late April. One year ago, prices were about $2,200 to $2,300 an ounce.

Real estate has also drawn more interest in recent years amid high demand from buyers and accelerating prices. The median sale price for an existing home in the U.S. in March was $403,700, according to Bankrate. That is down from the record high of $426,900 in June.

“When you talk about stocks, you’re not talking about one big asset,” she said. “You’re talking about thousands and thousands of companies that do different things.” McClanahan is also a member of the CNBC FA Council.

While the tangibility of gold and real estate may provide a sense of comfort, it also makes them illiquid, or difficult to cash out, McClanahan said.

If you are among the Americans that want exposure to real estate or gold, there are different ways to do it wisely, experts say.

For real estate, financial advisors say investors might look into real estate investment trusts, also known as REITs, or consider investments that bundle real estate stocks, like exchange-traded funds.

An REIT is a publicly traded company that invests in different types of income-producing residential or commercial real estate, such as apartments or office buildings.

In many cases, you can buy shares of publicly traded REITs like you would a stock, or shares of a REIT mutual fund or exchange-traded fund. REIT investors typically make money through dividend payments.

Real estate mutual funds and exchange-traded funds will typically invest in multiple REITs and in the real estate market broadly. It’s even more diversified than investing in a single REIT.

Either way, you’re exposed to real estate without concentrating into a single property, and it will help diversify your portfolio, McClanahan said. 

Similar to gold — instead of stocking up on gold bullions, consider investing in gold through ETFs.

That way you avoid having to deal with finding a place to store or hide physical gold, you wash off the stress of it getting stolen or making sure it’s covered by your home insurance policy, experts say. 

“With the ETF, you actually get the value of the return of gold, but you don’t actually own it,” McClanahan said.