berg80
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- Oct 28, 2017
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Trumpās tax cuts are set to shrink after GOP flinches at deep spending cuts
President Donald Trump wanted a ābig, beautiful bill.ā Now Republicans are having to take some of the shine off of it.GOP leaders on Capitol Hill signaled Thursday they are scaling back their tax-cutting ambitions after running into difficulty making deep spending cuts and facing stern warnings from Republican deficit hawks who are threatening to vote against Trumpās sprawling megabill.
On the chopping block could be a litany of Trump demands, including a permanent extension of the tax cuts passed during his first term, as well as second-term campaign promises to provide tax relief to seniors while also exempting taxes on tips and overtime earnings. Those provisions could end up getting enacted only temporarily, according to four Republican lawmakers, some of whom spoke on the condition of anonymity.
With key committees struggling to meet a $2 trillion spending cut target, Speaker Mike Johnson told a group of House Republicans Thursday he is now targeting $4 trillion of tax cuts. Thatās a half-trillion dollars less than many in the GOP had hoped, and itās likely below the threshold needed to make the 2017 tax cuts permanent ā one of Trumpās earliest demands for the party-line megabill.
Not only are the tax cuts shrinking, so too is the amount DOGE was promised it would save. DOGE has revised its estimates for federal spending savings, reducing them to $150B from over $1T. Even this revised figure is being questioned, with verifiable, itemized cuts only reaching $63 billion.