Congress

‘Be careful about this’: Warnings abound as GOP considers writing off tax cuts

Published

12 months ago

March 12, 2025

It’s the accounting maneuver that could break the Senate, upend the federal budget process and explode the national debt.

That’s according to critics of a fiscal tactic that congressional Republicans are now seriously considering as they struggle to figure out how to deliver on all of President Donald Trump’s policy demands.

Adopting the “current policy baseline,” as it’s called, could be the only way for the GOP to make Trump’s 2017 tax cuts permanent and avoid painful cuts to federal programs, as well as pile on new income tax exemptions for tips, overtime and Social Security. Trump is expected to discuss the move with members of the tax-writing Senate Finance Committee at a White House meeting Thursday.

If lawmakers adopt the change, it would essentially make it appear as though extending current tax rates, set to expire at the end of the year, would cost nothing rather than the roughly $4 trillion over 10 years that nonpartisan scorekeepers estimate.

But while some Republicans argue that continuing current tax rates shouldn’t be counted toward the deficit, critics of the maneuver — including prominent GOP budget experts — say that it would be a recipe for disaster, a fiscal Pandora’s box that once opened could be used to forever excuse huge ongoing deficits.

“I would caution my friends, my Republican friends and senators up there, be careful about this,” said Bill Hoagland, the former GOP staff director for the Senate Budget Committee. “Someday you may be in the minority.”

The tactic is so tempting because it would solve a very difficult political problem for Republicans. Budget hawks in the House who do not want the party-line domestic policy bill adding to federal deficits want to ensure that planned tax cuts are closely tied to the amount of spending cuts Republicans can achieve.

Even then, the $4.5 trillion upper limit the House put on tax cuts does not leave enough room for a permanent extension of expiring tax cuts, in addition to all the other tax-related asks Trump has made.

For instance, adding on Trump’s other tax-related asks, such as income tax exemptions for overtime, tips and Social Security benefits, could add up to another $5 trillion, according to the nonpartisan Committee for a Responsible Federal Budget.

Critics say members of either party could use the maneuver to disguise trillions of spending through tax policies. Democrats argue that if Republicans move forward, they would be doing away with decades of precedent — and reneging on decades of anti-deficit rhetoric — to enact tax cuts for the wealthy.

Massachusetts Sen. Elizabeth Warren called it “magic math” in an interview and said going in that direction would end the congressional budget process as it has existed for more than 50 years.

“They can’t repeal the underlying reality, a $4.7 trillion giveaway to billionaires and giant corporations will cost $4.7 trillion,” she said, referring to how much the tax cut extensions are estimated to cost with interest.

Said Sen. Mark Warner (D-Va.), who signed onto a recent letter with Warren questioning the GOP’s strategy, “If this was done in the accounting world, you wouldn’t be an accountant for very long.”

Meanwhile, the leading advocate of moving to a current policy baseline, Senate Finance Chair Mike Crapo (R-Idaho), argued that it would rectify budget scoring rules that favor higher spending over keeping taxes low.

“If you’re not changing the tax code, you’re simply extending current policy, you are not increasing the deficit,” Crapo said on Fox Business in January. “We’ve got to get some kind of sensibility into the way that we score.”

Sen. John Kennedy (R-La.), a Budget Committee member, brushed off the idea that Republicans were undermining the budget procedures in place since 1974 — but also acknowledged that turnabout could be fair play when Democrats get their next governing trifecta.

“They will probably use current policy themselves in the future when they’re back in the majority,” he said.

Besides being controversial from an accounting perspective, the current policy baseline represents a major political gamble for Republicans, with the fate of potentially all of Trump’s tax agenda hanging in the balance.

That’s because the GOP might not know for weeks, if not months, if the maneuver will pass muster with the Senate’s parliamentarian. With a permanent extension of the expiring tax cuts moving toward the center of the Republican must-do list, an adverse ruling could create a huge hole in the GOP’s math.

“It would complicate making the tax cuts permanent,” said Sen. Lindsey Graham (R-S.C.), who chairs the Budget Committee.

That could create pressure for Republicans to overrule or even fire the parliamentarian — a move that would upend the delicate balance senators of both parties have adhered to for decades: Only bills that comply with strict fiscal rules aimed at reducing deficits can be exempted from the chamber’s 60-vote requirement for ending debate and moving to a final vote.

“As far as I’m concerned, that might as well give away the filibuster in the Senate,” Hoagland said.

Republicans, for their part, say they aren’t doing anything out of compliance with the longstanding budget rules. And there’s widespread skepticism inside the Senate GOP that they would ever vote to overrule the longtime parliamentarian, Elizabeth MacDonough.

We can say “it’s a $4 trillion deficit that we’re going to add into this, or we can say it’s current policy, but everyone knows it’s the exact same the next day,” said Sen. James Lankford (R-Okla.) in an interview. “So it’s nomenclature.”

Key GOP staff are already quietly meeting with the parliamentarian to try to get informal vibe checks on what she is thinking. Though senators won’t get a formal ruling until they go through what’s called a “Byrd bath” — when the reconciliation bill is vetted to make sure it complies with the rules that allow them to pass it by a simple majority — they can and frequently do have conversations with the parliamentarian’s office before that as they try to game out their procedural strategy.

“We think the law is pretty clear … but these things are all subject to discussion and arguments made in front of the parliamentarian,” Senate Majority Leader John Thune said in a brief interview, while cautioning that they were a long way away from that point.

But there’s skepticism from former longtime congressional staff and budget experts that the Senate GOP plan will fall within the rules of reconciliation. Sen. Jeff Merkley (D-Ore.), the top Democrat on the Budget Committee, predicted the parliamentarian won’t green-light the GOP strategy because it “seems like a pretty big stretch” of the rules.

George Callas of Arnold Ventures, who served as former Speaker Paul Ryan’s top tax aide during the drafting of the 2017 law, said adopting the current policy baseline would amount to a “huge gimmick.”

“My understanding is that the Senate parliamentarian gives a great deal of weight to the existing rules and the precedents and takes a skeptical look at just expedient reinterpretations of those rules for political reasons,” he said.

Congress

SAVE America Act is ‘No. 1 priority,’ Trump tells Republicans

Published

8 hours ago

March 9, 2026

Blue Light Newsroom

DORAL, Florida — President Donald Trump told House Republicans Monday to pass a major partisan elections bill a third time with new provisions, saying it should be the GOP’s “No. 1 priority” ahead of the midterm elections.

“It will guarantee the midterms,” Trump told lawmakers gathered at his golf resort. “If you don’t get it, big trouble, my opinion.”

The president spent 13 minutes at the close of a nearly hourlong address making crystal-clear he expects Speaker Mike Johnson and other top leaders to meet his demands. The House has already two passed versions of what is now called the “SAVE America Act” that would institute tough new citizenship and photo ID requirements for voting.

But Trump asked the gathered lawmakers to add in provisions curbing mail voting and targeting transgender rights — even it means abandoning the remainder of their legislative agenda before the November elections.

“Let’s go for the gold,” he said. “It’s actually a matter in a serious way of national survival. We can’t have these elections going on like this anymore.”

The already passed version of the SAVE America Act is awaiting a Senate vote. Majority Leader John Thune has committed to calling it up, but it is certain to be blocked by Democrats under the chamber’s 60-vote filibuster threshold.

Some conservatives, with Trump’s backing are looking to sidestep that obstacle with a “talking filibuster” that would force Democrats to hold the floor. Thune and other Senate Republicans are skeptical it would work without a rules change, but Trump said Monday failure was not an option.

“They have to get it done,” he said of the Senate. “If it takes you six months — I’m for not approving anything. … I don’t think we should approve anything until this is approved.”

Trump also endorsed a push by some House Republican hard-liners to attach a must-pass spy powers extension to the SAVE America legislation in a bid to pass both together — creating a nightmare for House GOP leaders who already face obstacles passing either bill.

He cast the voting and transgender provisions as proven political winners that Democrats would be hard-pressed to oppose, even though they have so far stayed almost entirely united against the legislation.

“That should be the easiest thing to get passed that you’ve ever had,” Trump said. “Those are best of Trump. This is the No. 1 priority, it should be, for the House.”

Congress

Rising energy prices threaten cornerstone of GOP midterm pitch

Published

9 hours ago

March 9, 2026

Blue Light Newsroom

DORAL, Florida — The economic fallout from President Donald Trump’s decision to go to war with Iran is imperiling the GOP’s legislative sales pitch ahead of the midterms, with energy price spikes threatening at least some of the pocketbook gains Americans are seeing from the sweeping tax cuts Republicans enacted last year.

Analysts with the Wall Street advisory and investment firm Evercore ISI estimated Monday that the impact on household costs attributable to the current crisis could erase the tax benefits from the “big, beautiful bill” for at least the bottom 30 percent of Americans — even if oil prices come off their $100-plus-per-barrel highs.

Some top Republicans acknowledged rising energy prices are cause for political concern.

“The price of gas is always kind of a benchmark,” Senate Majority Leader John Thune told reporters on Capitol Hill Monday. “I do think the fact that we’ve increased our supply here domestically will help ease it, but it’s something obviously we’ve got to pay attention to. And hopefully the operations in Iran … won’t be an extended situation.”

The impact of higher gas prices is hitting just as House Republicans gather for their annual policy retreat at Trump’s resort in Doral, Florida. The evidence could be seen just outside the gates, where regular gas was retailing at multiple stations for $3.59 per gallon — up about 70 cents from the Miami-area average on Jan. 1, according to GasBuddy.com.

The hope among Republicans gathered at the resort is that the crisis is short-lived, with several saying they believed Trump’s assurances that the supply bottlenecks caused by Iran’s effective blockade of the Persian Gulf would soon ease.

“I believe there’s a lot of emotion built into energy prices,” Rep. Chuck Edwards (R-N.C.) said in an interview. “I would look for things to settle down very soon.”

But other Republicans granted anonymity to speak candidly expressed real alarm as crude oil prices surged to nearly $120 a barrel overnight before settling later in the day below $90 — still about 30 percent above recent lows.

“If you are a Republican and not concerned right now, you are stupid,” one House Republican said, adding, “Hopefully, we will square this away sooner than later.”

Another House Republican, asked if the wartime crisis threatened to overshadow the benefits of the GOP megabill, replied, “Hell yes.”

“The most sensitive thing amongst most driving Americans is the price of gasoline,” the person added, saying it threatens to send Americans “right up the wall.”

Trump is scheduled to address lawmakers in Doral shortly after markets close Monday, and they will be listening closely to his message on the hostilities in the Middle East and his plans to address high energy prices. He has announced plans to get oil shipments moving through the Gulf again, including by providing naval escorts for tankers and backstopping insurance for vessels.

White House spokesperson Taylor Rogers said in a statement that oil prices will “drop dramatically once the objectives of Operation Epic Fury are achieved.”

“President Trump and his entire energy team have had a strong game plan to keep the energy markets stable well before Operation Epic Fury began, and they will continue to review all credible options,” she said.

But the president so far has shown little interest in pushing his party to foremost focus on legislation tackling affordability, as some of his political aides have advised. Instead, Trump is pressing Senate Republicans to pass a sweeping GOP elections overhaul bill — adding on demands for a near-complete ban on mail voting and unrelated policy provisions like banning transgender surgeries for minors.

Hours before taking the stage in front of House Republicans at his Florida resort, he reiterated his request.

Even before the oil price shock, Trump’s agenda had come with a hefty price tag for consumers. Analysts at the Tax Foundation have already determined that the president’s trade policies cost Americans $1,000 on average last year, matching the average size of refund checks that Trump officials say will ease cost-of-living concerns.

The Supreme Court struck down many of Trump’s tariffs, but those that remain are projected to cost households $600 on average this year, according to the nonpartisan think tank.

House Republican leaders are hoping to keep the annual policy retreat focused on their legislative priorities ahead of the midterms. Rep. Lisa McClain of Michigan, the GOP Conference chair, said ahead of the retreat she hoped to firm up the party’s messaging around last year’s megabill.

But going into the Doral resort Monday, members were trained on all the reasons they hoped the politically perilous price spike would be short-lived.

House Natural Resources Chair Bruce Westerman (R-Ark.) said in an interview that reopening the Iranian-controlled Strait of Hormuz “would be even better for energy prices, although we’re seeing obviously a peak right now with the war going on.”

Rep. Riley Moore (R-W.Va.) said the supply crunch was “not an existential threat to us because of all the things we’ve done to make ourselves self reliant in terms of energy resources,” while acknowledging the “fungible” nature of the global oil market. He was hopeful about more ships navigating the Strait of Hormuz.

Rep. Carlos Gimenez (R-Fla.) said in an interview a “short-term gas price hike is … not what’s important.”

“What’s important is the long term benefits of having a peaceful Iran that means that gas prices will drop dramatically for the long term,” he said. “I’m not that concerned about it.”

Sam Sutton contributed to this report.

Congress

Thune: Talking filibuster ‘more complicated and risky’ than people realize

Published

9 hours ago

March 9, 2026

Blue Light Newsroom

Senate Majority Leader John Thune sent a warning shot Monday over the talking filibuster, saying the procedural playcall is “way more complicated” than many supporters realize.

“This particular approach in terms of the process is much more complicated and risky than people are assuming at the moment,” Thune told reporters, cautioning that a talking filibuster without forcing through a formal rules change — for which there isn’t the votes — could take up months of Senate floor time.

Thune’s comments came after President Donald Trump urged the Senate to quickly take up and pass GOP-led voting legislation, known as the SAVE America Act — even if it means invoking a talking filibuster, which would force Democrats to physically hold the floor in order to block consideration of the bill.

Trump also pitched expanding the bill’s scope beyond voting to include red meat issues like banning men from participating in women’s sports and prohibiting gender affirming surgery for children. Thune said Monday it would “make sense” for the House to send an updated bill to reflect Trump’s latest priorities.

Thune is the target of a fierce online pressure campaign to skirt the Senate’s 60-vote legislative filibuster — coming both from House Republicans and what the majority leader characterized Monday as a “paid influencer ecosystem.”

Part of the pitch from Sen. Mike Lee (R-Utah) and his allies has been that Republicans could force Democrats into a talking filibuster without having to officially change the Senate rules or precedents. Thune reiterated Monday that formally nuking the legislative filibuster is “not going to happen.”

“The one thing I’ve said all along and I’ve told him and others — that I can’t guarantee an outcome,” Thune said, referring to Trump. “I can’t guarantee a result if the result is only achieved by nuking the legislative filibuster. We don’t have the votes to do that, and so that’s just not a realistic option and I’ve made that clear to anybody who’s asked.”

But a significant number of GOP senators are also skeptical of a talking filibuster even without changing the Senate’s rules. Some believe the gambit would permanently weaken the 60-vote legislative filibuster. Others think the procedural option being floated by Lee and others is unworkable because it would let Democrats bog down the floor and potentially hijack the bill for any proposal for which they could get at least 50 votes.

“The process and how you ultimately try and get a result is still unclear to me based on all the research we’ve done,” Thune said Monday about invoking a talking filibuster, adding that conversations are still ongoing within the conference about the process.