Congress
Trump gets wish list in House GOP tax bill, with some exceptions
President Donald Trump won more than he lost in the House GOP’s newly unveiled tax legislation, though some of his priorities were slimmed down and his bid to raise taxes on some financial heavyweights wasn’t included.
The bill — which the House tax-writing committee will take up Tuesday — not only delivers on his promise to make a slew of his expiring 2017 tax cuts permanent, but also includes tax relief for tips, seniors and overtime work. Trump also got his request to give taxpayers a deduction for the interest they pay on auto loans, and to limit deductions for the purchase of sports teams.
The bill leaves a placeholder to at least triple the state and local tax deduction, after Trump promised blue-state Republicans during the presidential campaign that he would “get SALT back,” a break prized by their constituents that is now capped at $10,000. The exact contours are still up for discussion, though, Speaker Mike Johnson said.
In an homage to Trump’s populist base, Republicans would create a new tax-preferred savings plan called a “MAGA account” for children under the age of 8.
The draft also delivers another key Trump demand — a $4 trillion debt ceiling hike. The president raised the issue in private for months, saying he did not want to be forced into a massive spending deal with Democrats in order to avoid a debt default.
Trump took to his Truth Social platform and declared the bill “GREAT.”
“When I return from the Middle East, where great things will happen for America, we will work together on any and all outstanding issues, but there shouldn’t be many,” he wrote.
But the bill would require Trump to make some compromises. The breaks for tips, seniors and overtime pay would only last four years and include income restrictions for qualifying. That’s a nod to the fiscal constraints Republican tax writers are working under, which require trillions of dollars in spending cuts to offset some of the cost of the tax cuts.
And the plan doesn’t heed Trump’s call to eliminate the ”carried interest loophole” that taxes some income earned by private equity and hedge fund managers at a lower rate than normal income.
A tax increase on the highest-earning Americans, which administration officials had said was on the table, didn’t make it in either. Trump himself sent conflicting signals about the idea, seeming to embrace a “tiny” increase, while simultaneously saying it would be a bad political move.
Of course, this isn’t the end of the road for the bill. It’s just the beginning. The massive bill’s path through the GOP’s slim majority in the House is by no means assured. Deficit hawks are still upset.
Rep. Chip Roy (R-Texas) took to X after the bill’s release to complain that the GOP’s plan “leaves more than $20 trillion in additional debt in 10 years — and most of the [spending] cuts are beyond the Trump years.”
Assuming the legislation gets through the House, some additional business breaks are likely to be added in the Senate. But the chamber could also pare things.
The House text is “a good start,” said Sen. John Cornyn (R-Texas) on Monday. Asked what changes he wants, Cornyn quipped, “How much time do you have? I don’t have that much time.”
“I want to wait and see what the House actually passes because these at this point are just sort of ideas,” Cornyn said.
Trump’s top economic adviser, Kevin Hassett, appeared to acknowledge as much shortly after House Republicans released the bill Monday, calling it “a great first step.”
Jordain Carney and Megan Messerly contributed to this report.
Congress
Khanna expresses disappointment about Massie’s defeat
Rep. Ro Khanna (D-Calif.) expressed disappointment Sunday morning that Rep. Thomas Massie (R-Ky.) lost his primary last week.
Speaking on NBC’s “Meet the Press,” Khanna said of his reaction: “Sadness, disappointment. Thomas is a real friend. He’s a good man.”
Khanna and Massie are very much on opposite ends of the classic left-right ideological spectrum, but they came together to introduce the Epstein Files Transparency Act, requiring the release of files in the case of convicted sex offender Jeffrey Epstein. They also joined together to attempt, unsuccessfully, to block U.S. involvement in Iran.
Those efforts, as well as other votes, led President Donald Trump to repeatedly denounce Massie and campaign on behalf of Ed Gallrein, Massie’s challenger in their Kentucky congressional district. Gallrein won the primary last week with approximately 55 percent of the vote.
Speaking to host Kristen Welker, Khanna offered his analysis of Massie’s defeat.
“He was taken out for two reasons,” Khanna said. “One: He had the courage to go after some very powerful people in working with me to get the Epstein Transparency Act passed. As you mentioned, that’s historic bipartisan legislation that finally got justice for the survivors. And he had people spend millions of dollars and had the president of the United States after him.
“And second, he worked with me to stop this war in Iran. So for taking on the Epstein class and taking on war, he basically lost his state. And I admire his courage in taking those positions.”
With talk this weekend of a possible deal with Iran, Khanna said it is time for the war to come to an end.
“The answer to your question is yes. I do believe we need a negotiated deal,” he told Welker.
Congress
Absent congressmember Tom Kean Jr. starts working the phone
Rep. Tom Kean Jr., whose two-and-a-half month disappearance has stoked speculation about his health and political future, has begun more actively communicating over the phone.
On Thursday, Kean began calling Republican county chairs in his 7th Congressional District, one of the most competitive in the country in this year’s midterms. The two-term Republican also gave a “lengthy” interview to New Jersey Globe on Thursday afternoon, the first he has granted since he last voted on March 5.
Kean did not respond to a text message from Blue Light News and his voicemail was full Thursday night.
But Kean, 57, gave no details to the Globe on his undisclosed illness, which has kept him out of public view since early March. He said he’s expecting to make a full recovery, that it would not affect his cognitive health, that he plans to run for reelection and that he will publicly discuss his health at an unspecified later date.
“My doctors are confident that I’m on the road to a full recovery,” Kean told New Jersey Globe. “I understand the need for public transparency, and I appreciate the support of my constituents.”
Kean added that he plans to return to voting and campaigning in the next couple weeks. Rep. Richard Hudson (R-N.C.), chair of the House GOP’s campaign arm, told reporters Thursday he spoke to Kean and he will be back voting in June.
Kean’s lengthy absence has drawn national media attention, with reporters staking out his home in the wealthy 7th Congressional District, where he faces an extremely competitive reelection, with four Democrats competing in the June 2 primary to take him on in November. His campaign and office staff had repeatedly said that he expects to make a full recovery and would return to work “soon.”
But few people — even Kean’s two fellow New Jersey House Republicans — had recently reported speaking to him. House Speaker Mike Johnson told reporters that he spoke to Kean last month.
Kean called Republican chairs in his district on Thursday.
“He sounded good to me. Sounded just as normal as always,” said Carlos Santos, the Republican chair of Union County, where Kean lives.
Santos said that he did not ask Kean about his ailment, and that Kean did not disclose it. But he said Kean confirmed he’s running for reelection and that he has his support.
Tracy DiFrancesco, the GOP chair of Somerset County, also spoke with Kean.
“It was just a simple conversation. He sounded just like Tom always sounds. He sounded perfectly fine. He’s basically back. Hopefully we’re going to see him very soon,” she said. “I think he’s doing well and we’re excited to get back on his campaign.”
Congress
Tom Kean to return?
Rep. Richard Hudson, chair of the House GOP’s campaign arm, told reporters Thursday he spoke to Rep. Tom Kean Jr. and he will be back voting in June.
Kean, a New Jersey Republican, has been missing from Capitol Hill since March 5 without explanation. Hudson, of North Carolina, said in an interview just a few days ago he hadn’t spoken to Kean in a while and only heard from Kean’s team that he could run for reelection.
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