Republicans in the US House of Representatives are grappling with internal divisions over how to fund President Donald Trump’s ambitious tax-cut agenda amid concerns about a soaring federal deficit approaching $2 trillion annually. 

With a slim 218-215 majority, the party faces significant pressure to achieve consensus ahead of an upcoming vote on the fiscal 2025 budget resolution. 

The resolution is critical for advancing Trump’s broader policy goals, including tax cuts, immigration reform, energy deregulation, and increased military spending.

As House Speaker Mike Johnson prepares to lead a three-day policy retreat in Miami, hardline conservatives within the party have expressed fears that Johnson’s leadership may falter in delivering the deep spending cuts necessary to offset the cost of Trump’s proposed $6 trillion tax-cut plan. This initiative also coincides with addressing the national debt, now exceeding $36 trillion.

Key among Republican priorities is extending the 2017 Tax Cuts and Jobs Act (TCJA), which is set to expire at the end of this year. According to the Committee for a Responsible Federal Budget, maintaining the TCJA could cost over $4 trillion in the next decade. Trump’s additional proposals, such as eliminating taxes on tips, overtime, and Social Security benefits, would add another $1.8 trillion to the cost.

Representative Michael Cloud of the House Freedom Caucus voiced the need for fiscal discipline, saying, 

“Most of us support the TCJA. We all want to support what President Trump is doing. But we also recognize the need to get our fiscal house in order. We’ve got to have a course correction, and it’s got to be dramatic.”

Johnson aims to integrate these tax reforms into a comprehensive legislative package addressing Trump’s priorities, including disaster relief for wildfire-affected Los Angeles communities and a necessary debt ceiling increase to prevent a national default. 

“There are a number of ideas on the table,” Johnson said, expressing hope for a unified strategy during the Miami retreat.

Meanwhile, House Democrats have criticised the Republican agenda. Minority Leader Hakeem Jeffries called the plans “a contract against America,” warning they would harm working families, the middle class, seniors, veterans, and programs like Medicaid and the Affordable Care Act. 

Jeffries also cautioned that Republican policies risk undermining healthcare for uninsured workers and vulnerable communities.

Failure to reach agreement could derail Republican efforts to pass Trump’s agenda by May, especially as they plan to bypass Senate Democrats using a legislative manoeuvre that demands near-unanimity within their caucus.

Faridah Abdulkadiri

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