{"id":10124,"date":"2025-06-10T12:02:16","date_gmt":"2025-06-10T12:02:16","guid":{"rendered":"https:\/\/bluelightnews.com\/category\/politics\/capitol-agenda-gop-eyes-cuts-to-trumps-tax-promises\/"},"modified":"2025-06-10T12:02:16","modified_gmt":"2025-06-10T12:02:16","slug":"capitol-agenda-gop-eyes-cuts-to-trumps-tax-promises","status":"publish","type":"post","link":"https:\/\/bluelightnews.com\/category\/politics\/capitol-agenda-gop-eyes-cuts-to-trumps-tax-promises\/","title":{"rendered":"Capitol agenda: GOP eyes cuts to Trump\u2019s tax promises"},"content":{"rendered":"
\n

Senate Finance Republicans are increasingly looking to dial back key items on President Donald Trump\u2019s tax policy wish list. And it\u2019s pitting them against the architect of the House-passed tax legislation, Ways and Means Chair Jason Smith \u2014 and potentially even the White House.<\/p>\n

The rub is this: The House version of the megabill would restore tax incentives for research and development, business equipment and debt interest through 2029, which Trump has indicated he supports. But Senate Republicans are dead-set on making them permanent, a proposition that would likely add hundreds of billions in more red ink to the legislation.<\/p>\n

To offset that cost, GOP senators are looking to water down other tax provisions they believe aren\u2019t as \u201cpro-growth.\u201d Those policies include \u201cno taxes on tips,\u201d \u201cno taxes on overtime\u201d and tax relief for seniors \u2014 all proposals Trump touted on the campaign trail and collectively boast a price tag of roughly $230 billion, according to the Joint Committee on Taxation.<\/p>\n

Smith is warning senators to tread carefully in challenging Trump\u2019s desires.<\/p>\n

\u201cI think that the United States Senate will not want to scale down the president\u2019s priorities. No tax on tips, no tax on overtime are two of his top priorities,\u201d the Missouri Republican told reporters Monday. \u201cAre there some tweaks that they can do to it that I would recommend? Yes, and I have recommended.\u201d<\/p>\n

But some Senate Republicans who sit on the Finance panel have made clear they have their own ideas. When Blue Light News asked Sen. Ron Johnson whether he believes \u201cno tax on tips\u201d or \u201cno tax on overtime\u201d are pro-growth, he gave a terse \u201cnope.\u201d<\/p>\n

\u201cThey\u2019re making a case to increase the labor supply,\u201d the Wisconsin Republican told Blue Light News. \u201cI would just extend the current tax law.\u201d<\/p>\n

Sen. Thom Tillis (R-N.C.) has likewise been pushing to make changes to both policies, telling Blue Light News Monday that \u201cno tax on overtime\u201d should be rewritten to ensure it only applies to people working over 40 hours a week.<\/p>\n

Meanwhile, House Republicans are hoping to tweak some language<\/a> in their bill they believe the Senate parliamentarian will identify as non-compliant with the budget reconciliation process. They\u2019ll do so by using a procedural maneuver within the Rules Committee that won\u2019t require the chamber to take a standalone vote on a revised measure, five people told Blue Light News.<\/p>\n

House Republican leaders expect a report on the potential Senate problems Tuesday morning, though Majority Leader Steve Scalise acknowledged they may not have the full list before the Rules hearing scheduled for later Tuesday.<\/p>\n

\u201cI don’t think there will be any big surprises,\u201d Speaker Mike Johnson added Monday, \u201cbut that’s part of the process.\u201d<\/p>\n

What else we\u2019re watching:<\/i><\/b><\/p>\n

\u2014 Rescissions heads to Rules: <\/b>The House Rules Committee is scheduled to vote on the White House\u2019s rescissions package at 2 p.m. Tuesday, paving the way for a floor vote by Thursday. Johnson and Scalise are confident they can appease members\u2019 concerns about clawing back money Congress has already greenlit and slashing funding for the PEPFAR program and public media.<\/p>\n

\u2014 Crypto vote imminent:<\/b> Senate Majority Leader John Thune wants to pass landmark cryptocurrency legislation this week that would create new rules for dollar-pegged digital tokens. He teed up the stablecoin bill for another procedural vote<\/a> as soon as Wednesday.<\/p>\n

\u2014 Trump admins on Blue Light News: <\/b>A slew of Trump administration officials will testify before various House and Senate committees Tuesday on the president\u2019s fiscal 2026 budget requests for their agencies. That includes Defense Secretary Pete Hegseth, Joint Chiefs of Staff Chair Gen. Dan Caine, NIH Director Jay Bhattacharya, CIA Director John Ratcliffe and Energy Secretary Chris Wright.<\/p>\n

Jordain Carney, Jasper Goodman, Meredith Lee Hill and Jennifer Scholtes contributed to this report.<\/i><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Senate Finance Republicans are increasingly looking to dial back key items on President Donald Trump\u2019s tax policy wish list. And it\u2019s pitting them against the architect of the House-passed tax legislation, Ways and Means Chair Jason Smith \u2014 and potentially even the White House. The rub is this: The House version of the megabill would […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-10124","post","type-post","status-publish","format-standard","hentry","category-congress"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/posts\/10124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/comments?post=10124"}],"version-history":[{"count":0,"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/posts\/10124\/revisions"}],"wp:attachment":[{"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/media?parent=10124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/categories?post=10124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bluelightnews.com\/category\/politics\/wp-json\/wp\/v2\/tags?post=10124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}