
The GOP’s Tax Conundrum
Republicans are fighting over how and to whom to extend the 2017 Trump tax cuts.
A major battle in Washington will impact Americans for years to come, and it’s not a clash between Republicans and Democrats.
The conflict is within the GOP itself, pitting conservatives against one another over taxes and spending. The Republican Party has long advocated for reducing the tax burden on American workers and cutting spending, but party members have had to overcome a rift over how to implement Donald Trump’s bold plan to fix both.
“House Republicans adopted a compromise budget resolution Thursday, allowing them to finally start the legislative process of drafting President Trump’s ‘big, beautiful’ agenda package,” reports the New York Post. “The measure cleared the lower chamber in a 216-214 vote, with just two Republicans — Reps. Thomas Massie (R-Ky.) and Victoria Spartz (R-Ind.) — opposing it after additional GOP skeptics were assured the final bill would have enough spending cuts for their liking.”
Republicans have a slim 220-213 majority in the House and couldn’t afford to lose more than a few votes from their own side. Meanwhile, Democrats predictably vote against any measure that helps Republicans or President Trump — especially one that keeps tax rates low.
One of the points dividing the GOP was the watered-down Senate approach that seeks minuscule budget cuts. As Fox News reports, “The House’s [original] version, which the chamber passed in late February, calls for at least $1.5 trillion to $2 trillion in federal spending cuts to offset the new spending for Trump’s priorities on defense, the border and taxes. The Senate passed an amendment to the House version over the weekend that, while closely mirroring the lower chamber, called for at least $4 billion in spending cuts. Sources told Fox News Digital that there are as many as 30 to 40 people who have at least shared serious concerns about the bill.”
Another complicating factor is the president’s own statements about taxes. On the one hand, Trump has hinted at abolishing the federal income tax for Americans earning less than $150,000 per year. On the surface, who wouldn’t want to put more money in workers’ paychecks and unleash their buying power? But it’s easier said than done, and it would require another source of revenue coming into the government as well as fiscal discipline — the likes of which we’ve never seen in Congress. Not to mention that shrinking the tax base even further is a recipe for even greater politicization of the tax code.
On the other hand, Trump has mentioned the possibility of raising taxes on millionaires, an unsettling idea for some Republicans who worry it might make it challenging to oppose taxing the wealthy in the future when Democrats regain power.
Trump’s approach to taxes is being criticized by all sides, especially by his own party. But that doesn’t mean the dissenters are trying to hurt Trump’s broader agenda for the country. Representative Rich McCormick of Georgia recently said, “Nobody’s defying the president. We’re trying to support the president’s legacy.” And Congressman Eric Burleson of Utah added, “We want to accomplish the goals that Trump has laid out. … We just don’t trust the Senate.”
Whether or not Trump is serious about raising taxes on the wealthiest Americans is unclear, but doing so would be risky. “How bizarre it would be to watch the GOP take a party-line vote to raise taxes — and to get nothing of consequence in return,” write the editors of National Review. “One could just about understand the play if Republicans were trading tax increases for serious entitlement reform as part of some grand bipartisan bargain to fix the federal fisc. But to do it unilaterally would be naïve beyond description.”
Taxing the wealthy is an idea that neglects the benefits of cutting taxes — most recently experienced during Trump’s first term. As the Wall Street Journal editorial board reminds us, “The corporate reform was the best, cutting the income tax rate to 21% from 35% while eliminating many tax loopholes. The reform ended so-called corporate inversions in which companies located overseas, and it induced a flood of capital locked overseas to return to the U.S. It made the U.S. more competitive again with corporate rates around the world. The economy in Trump’s first term was humming.”
There are still things to be ironed out between the chambers, but progress has been made. “It was a good day in the House; I told you not to doubt us,” said House Speaker Mike Johnson after Thursday’s vote. “We get the job done, and we’re really grateful to have had the big victory on the floor right now.” He added, “The committees in the Senate and the House will be working in a collaborative fashion.”
Republicans should come together and realize the magnitude and opportunity of this moment. Their power is only guaranteed through 2026, and if Democrats take back the House, the America First agenda is finished. Opponents of the Senate bill aren’t fighting against Trump but are seeking to ensure that the president’s goal of reducing our national debt and unleashing a golden era of prosperity becomes a reality.
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