House GOP Faces SALT, Wealth Tax Debate in Tackling Trump Agenda

House Republicans face debates over a tax on the wealthy, SALT tax and Medicaid cuts as lawmakers try to find the best way forward on the expansive Trump tax agenda.

It’s game time for House Republicans next week as they prepare to debate key provisions of their “big, beautiful bill” that includes President Donald Trump’s tax agenda and potential cuts to Medicaid.

The House Ways and Means, Energy and Commerce, and Agriculture committees plan to mark up their respective portions of Republicans’ sweeping reconciliation bill next Tuesday as House lawmakers race to pass the final package out of their chamber by Memorial Day.

Republican tax-writers met in the Library of Congress yesterday for hours to finalize the panel’s legislation, where lawmakers are hoping to make Trump’s 2017 tax cuts permanent and carry out his campaign promises to eliminate taxes on tips, overtime, and social security.

Amid Republicans’ struggle to meet the $2 trillion target for spending cuts outlined in the budget resolution Congress adopted last month, Rep. Lloyd Smucker (R-Pa.), a member of the Ways and Means Committee, told reporters yesterday lawmakers likely had less wiggle room to cut taxes.

“I think we are writing to $4 trillion. It doesn’t sound like we’re going to get the $2 trillion in spending so that means we’d have to be below four and a half” trillion, Smucker said.

The budget resolution directly ties the Ways and Means panel’s allotment to cut taxes to spending cuts — with the baseline at $2 trillion for spending cuts and $4.5 trillion for tax cuts. If Republicans fall short of $2 trillion in spending cuts like Smucker suspects, then the allowance for tax cuts must be reduced by a commensurate amount.

But Republicans may be able to raise more revenue to help pay for their tax cuts if they raise taxes on high earners. Trump called Johnson on Wednesday asking to create a new tax bracket for individuals earning at least $2.5 million, or couples making $5 million, according to people familiar with the discussion, Erik Wasson reports.

The president also reiterated his desire to eliminate the carried interest tax break claimed by venture capital and private equity fund managers, one person said.

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