Bessent and Republicans at work on $1 trillion tax maxi-cut
President Trump's priorities include 'no tip tax, no social security tax, no overtime tax', but also the deductibility of car loans. White House pressure on Congress divided over cuts and spending
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US Treasury Secretary Scott Bessent and National Economic Council Director Kevin Hassett are meeting today with Republican Party leaders to lay out the plan for a more than trillion dollar tax maxi-cut. The meeting will be attended by Senate Majority Leader John Thune, House Speaker Mike Johnson, and tax committee chairmen Mike Crapo and Jason Smith.
Acceleration for approval of Trump's tax package
Trump, who will see Johnson before the summit, called for accelerated approval of the package, which includes an extension of his first-term cuts and new reductions, financed by cuts in federal spending. Among the priorities outlined: tax exemption on tips, overtime, social security and deductibility of auto loans.
Scheduled meetings between the administration and lawmakers take place as White House pressure grows on House Republicans to pass a sweeping tax bill. Johnson has set a goal of late May for the passage of a bill that would include the renewal of the tax cuts introduced at the time of Trump's first term (2017) and a new set of tax cuts, paid for in part by reduced federal spending.
Discontent grows over management of tax issues
The push on taxes follows a series of polls showing that Americans are becoming highly critical of the president's handling of fiscal issues. A CNN poll released on 27 April showed that only 39% of Americans approve of Trump's handling of the economy so far, the lowest of his two terms in the White House. An NBC News poll showed that tariffs are also deeply unpopular.
In early April, the Republicans passed a budget resolution that will allow them to fast-track the tax bill in Congress without having to make concessions to attract Democratic votes. But the Republicans have not yet made significant progress on the details of the bill, including the tax priorities to be included and the spending to be cut.
