Muhamad Yehia
President Donald Trump outlined his tax agenda to Republican lawmakers at the White House on Feb. 6, according to press secretary Karoline Leavitt, who described the plan as “the largest tax cut in history for middle-class working Americans.”
The president also aims to end tax breaks for billionaire sports team owners and close the carried interest loophole, which allows private equity fund managers to pay lower tax rates on their earnings.
In addition, Trump is advocating tax incentives for U.S.-made products and an adjustment to the state and local tax deduction cap, a top priority for Republicans in high-tax states.
“This will be the largest tax cut in history for middle-class working Americans,” Leavitt said. “The president is committed to working with Congress to get this done.”
“Get smart, tough, and send the Bill to my desk to sign as soon as possible,” he wrote.
“We don’t want to get hung up on the budget process … whether it’s one bill, two bills, I don’t care,” he told lawmakers.
House Speaker Mike Johnson (R-La.) and Ways and Means Chair Jason Smith (R-Mo.) are pushing to bundle tax cuts with other GOP priorities, including border security and deregulation, into a single bill. However, Senate Republicans, led by Majority Leader John Thune (R-S.D.) and members of the House Freedom Caucus, prefer a two-step process—passing a smaller bill focused on border security and defense first and addressing tax policy later.
Sen. Lindsey Graham (R-S.C.), chairman of the Senate Budget Committee, is leading the Senate’s effort to prioritize border enforcement first. His proposal for a $300 billion bill would increase funding for border enforcement, deportations, and Immigration and Customs Enforcement agents while rolling back some Biden-era green energy tax credits to help offset costs.
Rep. Chip Roy (R-Texas) and other House Freedom Caucus members support Graham’s plan as an initial step toward funding Trump’s immigration and deportation agenda while Republicans continue crafting a larger tax and spending cuts package.
Republicans will need near-total party unity to advance Trump’s tax cuts and immigration policies, given the GOP’s narrow majorities in both the House and Senate.