Staff Reports
Republicans are dusting off their caps and gowns as they prepare to celebrate a federal government trifecta. With a 53-47 Senate majority in hand, GOP lawmakers are drawing up battle plans to resurrect and extend the provisions of the 2017 Tax Cuts and Jobs Act, affectionately known as the Trump tax cuts. After all, it’s not every day that a party finds itself not just winning the presidency again but reclaiming control of Congress as well.
Following immigration priorities, extending the beneficial tax cuts is taking center stage on the GOP’s to-do list. With Donald Trump back for a second, albeit non-consecutive, term, Republicans have an opportunity to solidify his legacy by making these tax cuts permanent. The GOP is keen on maintaining their slim majority in the House while navigating through the Senate, where the Democrats will hopefully find themselves taking a backseat—a place they’ve grown too accustomed to in recent years.
We are paying for this…. This isn’t magic money, it’s tax dollars. If you didn’t tax us so much, daycare wouldn’t be a F issue! We wouldn’t NEED 2 parents working just to keep food on the table, our elderly would be able to retire early, help with childcare and they wouldn’t be… pic.twitter.com/V4KhAFYv2z
— Just Jack (@Jack50377917) November 13, 2024
The key to pushing through these tax provisions lies in a little-known legislative trick called reconciliation. This isn’t about climbing a tree, but rather a budgetary maneuver allowing them to bypass the dreaded 60-vote filibuster, which more often than not is a squad of Democrats waving their hands against conservative proposals. It only requires a simple majority—51 votes—making it easier to pass new tax measures and extend the existing ones without a full-blown brawl on the Senate floor.
However, navigating this process isn’t a joyride. The Byrd rule comes into play here, adding limitations that might give lawmakers a headache or two. The provisions must be budget-related, meaning they can tweak tax rates but leave any non-budgetary policy changes at the door. Another hurdle is the need for a reconciliation instruction to address concerns about the skyrocketing national debt—currently dancing around the terrifying $36 trillion mark. It’s a tad bit irresponsible to champion new tax cuts and ignore the ticking time bomb of the deficit.
Of course, not all elephants in the room can be ignored. Politicians are increasingly aware that extending the individual income tax provisions of the TCJA will cost a pretty penny—projected in excess of $3.4 trillion over the next decade. They’re also aware that while the Trumpster wants to lower corporate tax rates further, that could lead to even less revenue. Republicans are going to have to channel their inner acrobat to balance ambitious tax cuts against the reality of growing governmental obligations, like Social Security and Medicare, without touching the funds that retirees pray will still be there when they need them.
The future is bright, but it requires some serious juggling acts to keep the party from summer camp-style squabbles over the SALT (State and Local Tax) deduction cap and more. With high-tax states clamoring for the repeal of the cap, some Republicans are ready to raise the white flag, hoping to keep those state politicians happy. Meanwhile, the rest of the party may prefer to stick with the current cap. These negotiations will undoubtedly spice up the proceedings as tax writers navigate their way through a high-stakes game that could help redefine the Republican agenda for years to come.
