Republicans leave many issues unresolved as they push Trump tax bill forward
Source: Reuters
May 12, 2025 1:03 PM EDT Updated an hour ago
WASHINGTON, May 12 (Reuters) - Republicans in the U.S. Congress on Monday sought to advance elements of their sweeping budget package that would cut taxes and tighten healthcare benefits for the poor, though they are still at odds over many details of their plan. Republicans in the House of Representatives released draft legislation over the weekend that for the first time laid out specifics of the plan, which would be the centerpiece of President Donald Trump's domestic agenda.
It would build on tax cuts passed during Trump's first White House term that are due to expire this year, reducing revenues by roughly $5 trillion over the next 10 years, according to a congressional estimate. That lost revenue would be partially offset by new restrictions on the Medicaid health plan, which covers 71 million low-income people, and other spending cuts that would total $912 billion over the coming decade.
The U.S. federal government currently carries more than $36 trillion in debt and Republicans - who hold narrow majorities in the House and Senate - are wrestling with how to extend the tax cuts without adding too much to the quickly growing debt pile. The current proposal could add about $4 trillion to the debt over a decade. House Speaker Mike Johnson has said that he wants his chamber to pass the bill before the U.S. Memorial Day holiday on May 26. Lawmakers face a harder deadline of mid-July, as Treasury Secretary Scott Bessent has urged lawmakers to raise the government's debt ceiling by that point to avoid a default that would upend global markets.
The thorniest matters related to the tax plan are still unresolved within the Republican ranks. The tax proposal, for now, does not include Trump's suggestion to raise the tax rate on the wealthiest Americans, which would break with decades of Republican orthodoxy. It also does not include Trump's promises to discontinue taxes on tips, overtime pay and Social Security retirement benefits, which would further reduce revenues and contribute to yawning budget gaps. Those provisions could be added in subsequent versions of the bill.
Read more: https://www.reuters.com/world/us/republicans-reveal-whether-they-will-advance-tax-hike-wealthy-2025-05-12/
As a note - when they do these "reconciliation" budget bills, the actual appropriations, etc., will come from individual Committees in BOTH chambers and those Committees are responsible for specific Executive Branch departments.
The most recent "budget" news item per this - https://www.democraticunderground.com/10143457682
was a package released by the House Energy and Commerce Committee (which includes most of HHS and thus CMS & Medicare/Medicaid - the other Departments/agencies under their jurisdiction are listed here - https://energycommerce.house.gov/energy-and-commerce-jursidiction)
What is being discussed in this OP is the House Ways and Means Committee draft. They are the "tax" (revenue) people. The Subcommittees show what they cover - https://waysandmeans.house.gov/subcommittees/
During the year of the ACA crafting, the media kept reporting on these Committee draft releases (where each covered a portion of what would be the entire bill) as if those drafts were "THE (FINAL) BILL".
I am hoping they don't do that here with these Committee releases. And this is just the House. The Senate has corresponding Committees and might also be working on their own drafts. The 2 chambers MUST reconcile unless the Senate wholesale adopts the House's final version (which is doubtful although the Senate has a bunch of zombies in there and they only need a simple majority when using the "reconciliation" process).
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