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https://www.politico.com/news/2025/05/10/republicans-partial-tax-plan-estimated-to-cost-5-trillion-00340347
Rep. Jason Smith (R-Mo.) is seen outside a House Republican Conference meeting on Capitol Hill, Oct. 11, 2023. | Francis Chung/POLITICO
By Benjamin Guggenheim
05/10/2025 09:27 PM EDT
An early version of the House GOP’s tax plan would cost nearly $5 trillion, according to a new estimate from Congress’s nonpartisan tax scorekeeper.
The cost far exceeds what is permitted by the budget resolution Republicans adopted earlier this year, which set the parameters for the massive package of tax cuts and extensions, energy policy and border security investments the party wants to pass in the coming weeks.
The estimate, released Saturday evening by the Joint Committee on Taxation, also underscores how much hinges on the final details of the plan, which are likely to be unveiled Monday afternoon ahead of a scheduled Tuesday markup by the House Ways and Means Committee, chaired by Rep. Jason Smith (R-Mo.).
The House Republican-approved budget allows for $4.5 trillion in tax cuts — contingent on the GOP being able to find $2 trillion in spending cuts. Speaker Mike Johnson indicated last week that House Republicans are looking at a skinnier, $4 trillion tax plan, paired with $1.5 trillion in spending cuts.
The partial text of the tax proposal released by the Ways and Means late Friday would make permanent the individual income tax rates, which are otherwise due to expire at the end of the year. It also would extend and temporarily boost far-reaching tax benefits like the standard deduction and the Child Tax Credit.
But this early, so-called skinny version of the tax bill is otherwise silent on President Donald Trump’s biggest tax priorities he touted on the campaign trail, like his proposal to eliminate taxes on tips. It also bears no mention of the expensive business provisions that Republicans want to restore.
Rep. Jason Smith (R-Mo.) is seen outside a House Republican Conference meeting on Capitol Hill, Oct. 11, 2023. | Francis Chung/POLITICO
By Benjamin Guggenheim
05/10/2025 09:27 PM EDT
An early version of the House GOP’s tax plan would cost nearly $5 trillion, according to a new estimate from Congress’s nonpartisan tax scorekeeper.
The cost far exceeds what is permitted by the budget resolution Republicans adopted earlier this year, which set the parameters for the massive package of tax cuts and extensions, energy policy and border security investments the party wants to pass in the coming weeks.
The estimate, released Saturday evening by the Joint Committee on Taxation, also underscores how much hinges on the final details of the plan, which are likely to be unveiled Monday afternoon ahead of a scheduled Tuesday markup by the House Ways and Means Committee, chaired by Rep. Jason Smith (R-Mo.).
The House Republican-approved budget allows for $4.5 trillion in tax cuts — contingent on the GOP being able to find $2 trillion in spending cuts. Speaker Mike Johnson indicated last week that House Republicans are looking at a skinnier, $4 trillion tax plan, paired with $1.5 trillion in spending cuts.
The partial text of the tax proposal released by the Ways and Means late Friday would make permanent the individual income tax rates, which are otherwise due to expire at the end of the year. It also would extend and temporarily boost far-reaching tax benefits like the standard deduction and the Child Tax Credit.
But this early, so-called skinny version of the tax bill is otherwise silent on President Donald Trump’s biggest tax priorities he touted on the campaign trail, like his proposal to eliminate taxes on tips. It also bears no mention of the expensive business provisions that Republicans want to restore.
