Congress is split over a new budget extending Trump-era tax cuts
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On Saturday, the Senate approved a budget blueprint that aims to extend trillions of dollars worth of tax cuts enacted by President Trump in 2017, and also reduce government spending.
- For context: Among other things, the 2017 Tax Cuts and Jobs Act cut the corporate tax rate from 35% to 21%, capped deductions for state and local taxes (SALT) at $10,000, doubled standard deductions for taxpayers, and expanded the child tax credit. See the full details.
The 51-48 vote, which fell mostly along party lines, unlocks a maneuver allowing GOP lawmakers to bypass the 60-vote Senate filibuster and enact their Trump-approved budget later this year without any Democratic votes.
But over in the other chamber of Congress, lawmakers are split over whether to approve the new budget blueprint.
A House divided
Republican leaders in the chamber are seeking to approve the Senate’s version of the budget resolution, which offers few specific details beyond committing to an extension of $5+ trillion worth of Trump-era tax cuts over the next decade, alongside a minimum of $4 billion in spending cuts (though lawmakers’ stated target is much higher).
- But several individual House GOP members have voiced opposition to the Senate bill, saying it fails to guarantee enough federal spending cuts to avoid the risk of unacceptably large budget deficits.
- House Republicans in late February approved a budget resolution calling for a minimum of $1.5 trillion in spending cuts combined with $4+ trillion in Trump-era tax cuts, with the expectation that faster economic growth will make up for the ~$2.5 trillion gap. (For context: here’s what the Trump tax cuts entailed)
Eviction notice? As of late Monday, GOP opponents in the House—where Republicans hold a slim 220-213 majority—already had more than enough declared “no” votes to block the Senate’s version of the bill from passing. But Speaker Mike Johnson has overcome this kind of math before, including three such instances already this year.
Looking ahead…Both chambers of Congress must pass the same version of a budget resolution before lawmakers can advance a bill that avoids the Senate filibuster, as Republican leaders are aiming to do.
📊 Flash poll: In general, do you agree with congressional Republicans’ plan to extend most or all of Trump’s 2017 tax cuts while also enacting cuts to federal spending?
See a 360° view of what pundits are saying →
Sprinkles from the Left
- Some commentators argue that with some thoughtful reform—and a bit of good faith—Congress’ current effort could become the start of a responsible, ambitious fiscal overhaul, but it could also amount to another round of budget-busting tax cuts from Republicans.
- Others contend that Republicans like to pretend they’re fiscal conservatives by avoiding acknowledgement of the hefty price tag associated with their actions, as they don’t want to fully offset tax cuts with unpopular spending cuts.
- “Republicans Can Have Their Tax Cuts and Benefits, Too” –Bloomberg Editorial Board
- “The GOP has an Orwellian solution to pay for Trump’s tax cuts” –Catherine Rampbell, WaPo
- “Republicans want to fool you into thinking a massive tax cut has zero costs” –Thomas Kahn, LA Times
Sprinkles from the Right
- Some commentators argue that Republicans in Congress should focus on passing a pro-growth tax bill pronto, and spare the selective outrage about avoiding a $4.5 trillion tax increase.
- Others contend that while Senate Republicans claim the paltry $4 billion target for spending cuts is just a placeholder for later cuts, but there is simply no guarantee those cuts will ever come—and the reality is that many Senators don’t have the courage to cut programs truly driving federal spending.
- “The Country Needs a Tax Cut, and Soon” –WSJ Editorial Board
- “Senate Republicans go weak on spending cuts” –Washington Examiner Editorial Board
- “How Republicans can enact Trump’s tax cuts” –Grover Norquis, Washington Times
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