Congress
A delay in GOP’s tax plans could push up costs by hundreds of billions
The price of extending Republicans’ tax cuts will surge by hundreds of billions of dollars if lawmakers dawdle, new government figures show.
The Treasury Department released numbers Friday showing that rolling over all of the soon-to-lapse provisions, as well as undoing other reductions in business benefits that were triggered by the 2017 law, would cost $5.5 trillion — substantially more than the $4 trillion the Congressional Budget Office has projected.
There’s a number of reasons why Treasury’s price tag is much higher but a big one is that its analysis begins in 2026, not 2025, like CBO’s.
That may not sound like a big deal, but when budget analysts estimate the price of legislation, they look at the anticipated expenses over a decade, and it makes a huge difference when the cost-counting clock starts.
Right now, the government is in its 2025 fiscal year, and so analysts look at years 2025 through 2034 — and expenses in 2025 are minimal because Republicans’ tax cuts are still on the books. About 40 provisions are due to expire at the end of the year.
But when the new fiscal year begins Oct. 1, analysts will begin tallying up costs between 2026 and 2035, as Treasury happened to do in its in analysis. That means the very cheap year of 2025 will fall out of the picture, and the very expensive year of 2035 — when costs are expected to run $600 billion — will suddenly be included.
House Speaker Mike Johnson (R-La.) has said he wants to get a bill including the tax provisions on President-elect Donald Trump’s desk by the end of April — an ambitious timeline given the size of the package and Congress’ tendency to dawdle. Some tax vets now expect lawmakers to take until their August recess to wrap up their plans, if not longer.
Republicans are off to a slow start, with lawmakers bogged down in an extended and so far unresolved debate over whether to tackle immigration first and put off taxes until later or combine them into a single bill.
The House and Senate intend to go their own ways, with competing approaches, which amounts to postponing critical decisions, like how much to spend on a tax bill, that have to be resolved before they can use the “reconciliation” procedure they’re depending on to get their plans through the balky Senate.
Treasury wasn’t trying to warn Republicans of the cost of delay; it was examining the cost and the biggest winners of renewing the provisions. Not surprisingly, the analysis says the super-rich would see the biggest benefits, with the top 0.1 percent reaping a 4.2 percent increase in their after-tax incomes compared to the roughly 1.2 percent increase for those in the middle of the income spectrum.
CBO is expected to release next week its own revised estimates of the cost of extending the provisions.
Last year, it put the price at $4 trillion or $4.6 trillion, including increased debt service.
It’s not like Congress to work far ahead of schedule, but had lawmakers taken up the extension of the Tax Cuts and Jobs Act in 2023, the price would have been easier to swallow. CBO pegged the cost then at a comparatively paltry $3 trillion, or $3.45 trillion including interest expense — because its estimate then included not just one but two cheap years, 2024 and 2025.
Congress
Trump’s plan to ‘take over’ Gaza Strip confuses GOP lawmakers
President Donald Trump’s vague vow that the United States will “take over the Gaza Strip” is sparking quick pushback, and confusion, among some of his key allies in the Senate GOP.
Trump provided no details during a press conference on Tuesday with Israeli Prime Minister Benjamin Netanyahu about how the United States would acquire the land, but said that the United States will “own it and be responsible.” Many lawmakers were learning about the remarks in real time as they headed to a vote on confirming Pam Bondi for attorney general Tuesday night.
“There’s probably a couple of kinks in that slinky,” Sen. Thom Tillis (R-N.C.) said after a reporter described the rough parameters of what Trump had said.
Another GOP senator, granted anonymity to give his candid reaction to Trump’s comments, was equally direct: “I did not have this on my bingo card. … I got so many questions.”
Senate Majority Leader John Thune said in a brief interview that he hadn’t seen the statement, but that “I think we’re obviously all interested in facilitating a solution to the Middle East, particularly with the whole situation in Gaza.”
“How we best achieve that I think is still — it’s a subject of conversation, sounds like he’s got an idea on that,” he added.
It’s the latest in a growing list of examples of Trump catching congressional Republicans off guard with his actions or rhetoric — a call back to his first administration when GOP lawmakers frequently claimed they hadn’t seen Trump’s latest tweet or comment.
Senate Foreign Relations Chair Jim Risch (R-Idaho) said he had not heard Trump’s remarks and so “I don’t want to comment.” Sen. John Cornyn (R-Texas) said that “I don’t really know what to make of that” and joked that reporters should check back with him on Wednesday.
Other allies tried to walk a careful line between not shutting the door to Trump but also signaling their skepticism about taking over the Gaza Strip.
“We’ll see what our Arab friends say about that. I think most South Carolinians would probably not be excited about sending Americans to take over Gaza. I think that might be problematic, but I’ll keep an open mind,” said Sen. Lindsey Graham (R-S.C.).
Asked about sending U.S. troops, he added that Gaza “would be a tough place to be stationed as an American.”
Sen. John Hoeven (R-N.D.), who noted he still had to take a look at the comments, said Trump might be doing this as a negotiating tactic. He added that maybe the president is trying to “force a resolution” on a “very difficult issue.”
“I don’t know that I think it’s the best use of United States resources to spend a bunch of money in Gaza, I think maybe I’d prefer that to be spent in the United States first,” Sen. Josh Hawley said. “But let’s see what happens.”
When asked if he thought sending US troops to Gaza was the right solution, the Missouri Republican said he did not.
While Democrats were largely critical of Trump’s remarks, one appeared to open the door to a potential American presence in Gaza: Sen. John Fetterman. The Pennsylvanian, who has been vocally supportive of Israel, called Trump’s remarks “provocative” but added that “it’s part of a conversation and that’s where we are.”
Asked if he wanted to see U.S. involvement physically in Israel, including troops on the ground, he added: “They’ll certainly be a part of it. I don’t know what the role is. But they’re obviously a part of it.”
Progressives were much more critical. Michigan Rep. Rashida Tliab, the only Palestinian American member of Congress, said in a post on X that Trump was “openly calling for ethnic cleansing,” adding: “He’s perfectly fine cutting off working Americans from federal funds while the funding to the Israeli government continues flowing.”
Congress
Senate confirms Bondi for Attorney General
President Donald Trump’s nominee for attorney general, Pam Bondi, was confirmed by the Senate Tuesday evening, 54-46.
Bondi, a staunch Trump loyalist, will now assume the role of top federal prosecutor. She is poised to be a key figure in efforts to transform the Department of Justice, which the president has said he intends to use to go after his political adversaries.
As Bondi awaited Senate confirmation, the new Trump administration, under acting attorney general James McHenry, has already launched its broad effort to root out those deemed disloyal from the Department of Justice. Prosecutors involved in cases tied to the Jan. 6, 2021 attack on the Capitol, and the investigation into Trump’s role in spurring the riots, have been terminated.
When confirmed, Ms. Bondi will take the helm [at] what we all know is a turbulent time and also a Justice Department infected with political decision-making and its leaders refusing to acknowledge that reality,” said Senate Judiciary Chair Chuck Grassley (R-Iowa) on the Senate floor ahead of the vote.
The former Florida attorney general previously served as a lawyer to the President during his first impeachment trial and assisted the effort to overturn the results of the 2020 election in Pennsylvania. Democrats had seemingly accepted her confirmation as an inevitability when they instead used her hearing to probe Bondi on her response to comments made by another Trump acolyte who could likely be her subordinate: FBI director nominee Kash Patel.
In her confirmation hearing, Bondi declined to commit to enforcing the TikTok ban, offered a non-answer to whether former President Joe Biden won the 2020 election and did not provide a clear answer when asked if she would investigate Jack Smith, the special counsel charged with investigating Trump in the four years he was out of office. Trump has previously called for Smith to be prosecuted.
Congress
House Democrats are sticking with DOGE Caucus
Some Democrats are sticking with a congressional caucus partnered with Elon Musk’s so-called Department of Government Efficiency even as their party rails against its scorched-earth overhaul of federal agencies.
Multiple Democratic members of the caucus said they thought it was better to be inside the tent rather than outside, even as they disagree with how Musk is going about his job.
“The caucus is about focusing on rooting out waste, fraud and abuse. I joined in good faith and to make sure that we have a voice at the table to protect my constituents,” said Rep. Steven Horsford (D-Nev.), who added: “The illegal activity we’ll handle through the litigation process.”
“For now, I’m staying, but I’m staying because I’m going to talk to my Republican colleagues and basically ask them the question of, what’s the point of the caucus anymore?,” said Rep. Jared Moskowitz (D-Fla.). “Elon doesn’t seem to think the caucus is necessary because he doesn’t seem to think Congress is necessary.”
A third Democrat, Rep. Val Hoyle of Oregon, said she’d stay in “for now” and stressed that the “caucus is different than what Elon Musk is doing” or a separate Oversight Committee subpanel chaired by Rep. Marjorie Taylor Greene (R-Ga.) that’s intended to be another, more official Hill counterpart to Musk’s effort.
Democrats in recent days have rallied against GOP moves like the now-paused freeze of federal funding and the access to the Treasury Department payment system that Musk and his allies recently gained access to under the DOGE initiative. It has given the party a messaging foothold as they chart a response to Trump’s second term, with a group of Democratic lawmakers protesting against Musk Tuesday at the Treasury Department .
House Minority Leader Hakeem Jeffries said Monday he was open to a “conversation” about whether Democrats should remain on the Oversight subcommittee chaired by Greene.
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