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House GOP Grinding Ahead on Trump Bill 05/21 06:05
House Republicans are pushing to vote on their multi-trillion-dollar tax
breaks package as soon as Wednesday, grinding out last-minute deal-making to
shore up wavering GOP support and deliver on President Donald Trump's top
legislative priority.
WASHINGTON (AP) -- House Republicans are pushing to vote on their
multi-trillion-dollar tax breaks package as soon as Wednesday, grinding out
last-minute deal-making to shore up wavering GOP support and deliver on
President Donald Trump's top legislative priority.
Trump himself had instructed the Republican majority to quit arguing and get
it done, his own political influence on the line. But GOP leaders worked late
into the night to convince skeptical Republicans who have problems on several
fronts, including worries that it will pile onto the nation's $36 trillion debt.
A fresh analysis from the Congressional Budget Office said the tax
provisions would increase the federal deficit by $3.8 trillion over the decade,
while the changes to Medicaid, food stamps and other services would tally $1
trillion in reduced spending. The lowest-income households in the U.S. would
see their resources drop, while the highest ones would see a boost, the CBO
said.
Republicans hunkered down at the Capitol through the night for one last
committee hearing processing changes to the package. Democrats immediately
motioned to adjourn, but the vote failed on party lines.
"President Trump's 'one, big, beautiful bill' is going to require one, big,
beautiful vote," said Speaker Mike Johnson, R-La. "We are going to get this
done."
It's a make-or-break moment for the president and his party in Congress, who
have invested much of their political capital during the crucial first few
months of Trump's return to the White House on this package. If the House
Republicans fall in line with the president, overcoming unified Democratic
objections, the package would next go to the Senate.
The package comes at a daunting time as the U.S. economy faces uncertainty.
Democratic Leader Hakeem Jeffries said Republicans are trying to "quickly jam
this unpopular legislation through the House because they know that the longer
they wait, the more will come to light about this cruel and unconscionable
bill."
At its core, the sprawling 1,000-plus-page bill is centered on extending the
tax breaks approved during Trump's first term in 2017, while adding new ones he
campaigned on during the 2024 presidential campaign.
To make up for some of the lost revenue, the Republicans are focused on
spending cuts to federal safety net programs and a massive rollback of green
energy tax breaks from the Biden-era Inflation Reduction Act.
Additionally, the package tacks on $350 billion in new spending -- with
about $150 billion going to the Pentagon, including for the president's new "
Golden Dome" defense shield, and the rest for Trump's mass deportation and
border security agenda.
The package title carries Trump's own words, the " One Big Beautiful Bill
Act."
As Trump promised voters on the tax front, the package proposes there would
be no taxes on tips for certain workers, including those in some service
industries; automobile loan interest; or some overtime pay.
There would also be an increase to the standard income tax deduction, to
$32,000 for joint filers, and a boost to the child tax credit to $2,500. There
would be an enhanced deduction, of $4,000, for seniors of certain income
levels, to help defray taxes on Social Security income.
To cut spending, the package would impose new work requirements for many
people who receive health care through Medicaid, with able-bodied adults
without dependents needing to fulfill 80 hours a month on a job or in other
community activities.
Similarly, those who receive food stamps through the Supplemental
Nutritional Assistance Program, known as SNAP, would also face new work
requirements.
Older Americans up to age 64, rather than 54, who are able-bodied and
without dependents would need to work or engage in the community programs for
80 hours a month. Additionally, some parents of children older than 7 years old
would need to fulfill the work requirements; under current law, the requirement
comes after children are 18.
Republicans said they want to root out waste, fraud and abuse in the federal
programs.
The Congressional Budget Office has estimated 8.6 million fewer people would
have health insurance with the various changes to Medicaid and the Affordable
Care Act. It also said 3 million fewer people each month would have SNAP
benefits.
Republicans have been racing to finish up the package by Memorial Day, a
deadline imposed by Johnson as he tries to overcome objections within his own
ranks.
Conservatives are insisting on quicker, steeper cuts to federal programs to
offset the costs of the trillions of dollars in lost tax revenue. GOP leaders
have sped up the start date of the Medicaid work requirements from 2029 to 2027.
At the same time, more moderate and centrist lawmakers are wary of the
changes to Medicaid that could result in lost health care for their
constituents. Others are worried the phaseout of the renewable energy tax
breaks will impede businesses using them to invest in green energy projects in
many states.
Plus, a core group of lawmakers from New York, California and other high-tax
states want a bigger state and local tax deduction, called SALT, for their
voters back home.
As it stands, the bill would triple what's currently a $10,000 cap on the
state and local tax deduction, increasing it to $30,000 for joint filers with
incomes up to $400,000 a year. They have proposed a deduction of $62,000 for
single filers and $124,000 for joint filers.
Trump has been pushing hard for Republicans to unite behind the bill, which
has been uniquely shaped in his image, and he said after meeting with House
lawmakers privately Tuesday at the Capitol that anyone who doesn't support the
bill would be a "fool."
But it's not at all clear that Trump, who was brought in to seal the deal,
changed minds.
One of the conservative Republicans, Rep. Thomas Massie of Kentucky, said
afterward he's still a no vote.
"We're still a long ways away," said Rep. Andy Harris, R-Md., chair of the
House Freedom Caucus.
The Committee for a Responsible Federal Budget, a nonpartisan fiscal
watchdog group, estimates that the House bill is shaping up to add roughly $3.3
trillion to the debt over the next decade.
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