Trump's tax cuts are 'stuck in the mud' as Republicans split over spending
Feb 06, 2025
On Capitol Hill, Republicans are trying to pass a big bill that includes tax cuts, energy policy, health care, and border security funds. But they are having trouble agreeing on how much to spend. Some want over $2 trillion in spending cuts, while others want to keep spending levels high.
President Trump wants to eliminate income taxes on tipped wages and raise the limit on how much taxpayers can deduct from their taxable income. But these changes would mean less money for the government.
To lower the cost of the tax cuts, some lawmakers suggest shortening the number of years they would be in place. However, hard-line conservatives want any tax cuts to pay for themselves and even reduce the national debt.
House Republicans are working on a plan to balance all the different priorities, like energy, immigration, taxes, and military funding. But they need to agree on a spending plan by the end of the week.
House Democrats are expected to oppose whatever the Republicans come up with. So the real negotiations are within the Republican party. House Republicans need to be united behind the final bill to pass it.
Meanwhile, the Senate is planning to focus on border security first, and deal with tax cuts later in the year. Republicans in the Senate want to ensure more money for the military and border security.
Overall, Republicans are facing challenges in passing Trump's agenda due to disagreements over spending levels. But they are working hard to find a solution that everyone can agree on.