House Ways and Means Republicans are tentatively scheduled on March 10 and 12 to start drafting the GOP’s party-line bill enacting President Donald Trump’s tax agenda, according to a Republican lawmaker and another person granted anonymity to share the private plans.
In the sessions, which are anticipated to last all day, committee members will begin to hash out how they will attempt to extend Trump’s expiring tax cuts from his first term and enact his campaign promises such as eliminating tax on tips and overtime work. But tax writers will have a narrow window to enact those priorities because the House budget set an upper limit of $4.5 trillion on the costs of the legislation.
Ways and Means committee Republicans have floated various proposals, including a cap on certain deductions for companies, in order to tamp down on the costs. Tax writers have indicated they may have to implement some tax policies on a short-term basis to fit everything in.
Meanwhile, Senate Republicans are expected to come up with their own plans that would spend more to achieve the president’s wishes. Senate Majority Leader John Thune (R-S.D.) and Finance Chair Mike Crapo (R-Idaho), the top tax writer in the Senate, have said they want to treat an extension of Trump’s expiring tax cuts as costing nothing. That approach would provide leeway for Republicans to enact Trump’s other proposals.
However, House Ways and Means chair Jason Smith (R-Mo.) has expressed concern that the scoring method would be rejected by the Senate’s parliamentarian, the chamber’s independent legislative referee.
It also appears unlikely that deficit hawks in the House would approve of Senate Republicans’ alternate plan.
