Republicans headed for a $4.6 trillion brawl over Trump tax cuts [View all]
Source: Politico
11/29/2024 03:00 PM EST
As discussions intensify on Capitol Hill over reupping President-elect Donald Trump’s signature tax cuts, Republicans are headed for a massive fight over what could be a nearly $5 trillion price tag. Top House and Senate lawmakers are deeply divided over what, if anything, to do about the hit to the budget that would come by renewing the slew of tax cuts benefiting millions of Americans that are set to expire at the end of next year.
Some, like House Budget Committee Chair Jodey Arrington (R-Texas), are insisting that the effort should not add to the deficit, amid a rising tide of federal red ink. Seizing on the fanfare surrounding a bid by Elon Musk to cut spending, they argue that there are plenty of ways to cut the budget to defray the cost. Among the possibilities: cutting Medicaid, rescinding green energy tax breaks and boosting taxes on corporations’ overseas profits.
On the other side are lawmakers like Sen. Mike Crapo of Idaho, Republicans’ point man on taxes in the Senate, who has long argued against paying much of the cost of any tax agreement. Trump, whose position will hold major sway, doesn’t seem concerned about costs. He proposed during his campaign trillions in additional tax cuts on top of the ones enacted during his first administration. He is floating the idea of using revenue from tariffs on imported goods to cover them.
The debate, which could have ramifications for not just taxes but a host of other policies, will likely spool out over the coming months. Republicans will have to resolve their differences to unlock the arcane “reconciliation” process they intend to use. It would let them sidestep a filibuster by Senate Democrats and muscle through changes to taxes and, they hope, immigration and energy too.
Read more: https://www.politico.com/news/2024/11/29/republicans-major-fight-cost-tax-cuts-00191006
= new reply since forum marked as read