House and Senate Republicans in Dispute over Extension of Trump Tax Cuts

ICARO Media Group
Politics
29/11/2024 22h30

**House Republicans Clash with Senate over Extension of Trump Tax Cuts**

In a heated debate over the future of President-elect Trump's tax cuts, House Republicans are urging for a shorter extension compared to their Senate counterparts. The tax cuts, set to expire at the end of 2025, are a contentious issue among GOP members. House GOP leaders are pushing for a four-year extension to avoid alarming conservatives with the potential impact on the federal deficit, a concern highlighted by the Joint Committee on Taxation.

This ongoing discussion is marked by fluidity and nothing has been finalized yet. Incoming Senate Majority Leader John Thune (R-S.D.) noted that conversations are continuing to find common ground on the extension's duration. Speaker Mike Johnson (R-La.), along with House Ways and Means Committee Chair Jason Smith (R-Mo.) and House Budget Committee Chair Jodey Arrington (R-Texas), are wary of their narrow majority and the need to avoid defections from fiscal conservatives. They are mindful that extending the tax cuts for a longer period could significantly add to the nation's already staggering $36 trillion debt.

Contrastingly, Senate Republicans, buoyed by a comfortable 53-seat majority, are advocating for a 10-year extension to provide long-term certainty for individuals and businesses. Thune, who played a key role in crafting the 2017 tax law, supports a decade-long extension but acknowledges the necessity of a feasible package that can pass both the House and the Senate.

However, this division is stark with some Senate Republicans, with one Republican source describing the House GOP's concerns about limiting the tax package's duration as "bananas." Senator Mike Crapo (R-Idaho), slated to become the Senate Finance Committee chair, suggests a novel budget approach by scoring the tax package as a continuation of current policy. This method would not count the cuts set to expire, leading to a smaller budgetary score and contradicting traditional scoring rules used by Congress.

Crapo argues that the existing scoring system is flawed, explaining that the failure to prevent tax increases is mistakenly seen as a deficit increase. He asserts that letting the Trump tax cuts expire would amount to a $4 trillion tax hike on Americans, notably impacting those earning less than $400,000 per year. Crapo reveals that President-elect Trump backs his perspective on the matter, emphasizing the need for a bold stance and clear communication to the American public.

Despite Crapo's proposal, some conservative Republicans criticize it as a budgetary "gimmick" and insist that the impact on the deficit can't be ignored simply by altering scoring methods. Senate Finance Committee Republicans, represented by Amanda Critchfield, express a strong preference for extending the Trump tax cuts for as long as possible. The ongoing debate underscores the ideological divide within the GOP on handling the fiscal implications of tax policy.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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