Tag Archive for: Tax Relief

Senate Overnighter Sets the Stage for GOP to Clear ‘One, Big, Beautiful’ Hurdle

When President Trump coined the phrase “one, big, beautiful bill” to describe his legislative strategy, there’s one word he left out: “complicated.” For House and Senate leaders, it’s been a two-month dance just to get on the same page about the broad strokes of a plan to implement Trump’s agenda. It’s like writing the rules for a game you haven’t even played yet. And this game, a “mega-MAGA” Twister of tax relief, debt limits, budget cuts, defense and border spending, offsets, baselines, and mind-numbing procedure, is winner-take-all.

Turns out, electing Trump was the easy part. Putting some of his biggest priorities into law is a different story. For weeks, Speaker Mike Johnson (R-La.) and Senate Majority Leader John Thune (R-S.D.) have been working around the clock, trying to juggle the party’s personalities with the White House’s non-negotiables — and somehow make it all squeeze through the Senate’s rigid rules and the House’s aggressive timeline.

So far, the two chambers have come to the table with very different perspectives on make-or-break items — from how much fat to cut from government to whether America can afford permanent tax cuts. Right now, the Senate’s main goal is to catch up to the House, which approved its framework three weeks ago. Budget Chairman Lindsey Graham (R-S.C.) is doing his best to get his chamber there, finally publishing the text of a compromise bill on Wednesday.

In it, he gives senators a bit more wiggle room on how much spending to cut (the House insisted on a floor of $1.5-2 trillion), while also clearing the fiscal brush necessary to make the 2017 tax cuts permanent and raise the debt ceiling. “The Senate Plan has my Complete and Total Support,” the president posted when the language was released. “Every Republican, House and Senate, must UNIFY. We need to pass it IMMEDIATELY!”

Of course, passing it “immediately” means enduring one of the truly entertaining traditions of the Senate (unless you’re a staffer): the vote-a-rama. One of the conditions of budget reconciliation — which is the path Republicans are choosing so they can enact Trump’s agenda with a simple majority — is that senators can offer an unlimited number of unrelated, off-topic amendments without worrying about filibusters. That usually means the minority takes the opportunity to make a political point or force the other party to cast a vote on an uncomfortable issue.

It also, veterans of the chamber will tell you, takes a lonnnnnng time. “It’s a total and unequivocal nightmare of epic proportions,” Jim Manley, a former spokesman for then-Senate Majority Leader Harry Reid, insisted with the drama of someone who’s suffered through it. “For those working in the Capitol, it is an extraordinarily stressful time. Normally cheerful individuals become snarling animals as more and more votes are taken,” he reflected. And what’s so frustrating, he said, is that “it’s largely a meaningless exercise.” “The amendments are BS. If they’re designed to do anything, they’re designed to craft 15-second digital attack ads.”

The members either pretend to hate it or actually do, but the stories that come out of vote-a-ramas are legendary. In a chamber that almost never works on Fridays, it’s the closest thing to a Senate sleepover there is. While the political all-nighters are painful for both parties, they always seem to produce funny anecdotes like back-room poker games, stealth happy hours, regional food wars, and coffee — lots of it. There are the iconic images — like former Senator Joe Manchin throwing pepperoni rolls at reporters in 2015 or the parade of mattresses wheeled in for sleepy senators in 2017.

Right now, the hazing is scheduled to begin Friday night and last until who-knows-when. Technically, it could go on until one party cries uncle and stops offering amendments. The most recent vote-a-rama, in February, lasted until 4:51 a.m,

Once the painful process is over, and the Senate finally passes its version of a plan, the cold hard reality is that it’s just the beginning. The House and Senate will have boarded the same train, but it won’t have left the station yet. “It’s a meaningful step,” Senator John Kennedy (R-La.) agreed, “but it’s a baby step, folks,” he said, tempering expectations. “It’s just a blueprint,” Kennedy said. “The real work starts after we do this.”

After a two-week Easter break, the really uncomfortable conversations begin: negotiating every single detail of the final reconciliation package and getting almost every Republican in both chambers to agree. Or, as congressional leadership might call it, torture. While the GOP might have hung together long enough to get a skeletal outline done, that’s nothing compared to sitting down and going through each and every number, arriving at one that satisfies 270 different people. Already, House members are planting flags in the ground about their “must-haves.”

As FRC’s Senior Director of Government Affairs Quena González told The Washington Stand, “Since this budget resolution is designed to pass with only Republican votes, it’s illuminating different interests in the Republican Party. Defense hawks in both the House and Senate want the Senate’s higher ceiling on Pentagon spending ($150 billion vs. the House ceiling of $100 billion) to eventually prevail. President Trump wants his signature tax cuts from 2017 to be permanent and for Congress to raise the debt limit.”

Then, of course, there are the fiscal hawks, who González points out “are worried about the deficit and debt and generally favor the House language that ties a $4 trillion debt ceiling to at least $2 trillion in overall spending cuts — while at the same time, other Republicans are worried that a $4 trillion debt ceiling could be hit before next year’s election (triggering a second debt ceiling deadline that could force Republicans to compromise with Democrats on policy and spending right before an election) and therefore favor the Senate’s $5 trillion debt ceiling.”

And the clock is ticking. For Congress to hit Johnson’s Memorial Day deadline, House and Senate committees would only have until May 9 to produce their pieces of the budget package, Quena warns, and until May 16 for the Finance panel’s debt limit increase.

In other words, it’s a lot to sort through in a short amount of time. The one silver lining for the GOP is that Democrats, at this point, “have no leverage in all of this,” González continued, “because a budget reconciliation process can be passed, albeit very slowly, on a simple majority vote, so without any Democrats.” Their sole focus, he explained, “is basically trying to gum up the works, force painful votes along the way, and generally rooting for blood.”

And right now, there’s plenty to go around. House and Senate Republicans are at very different places when it comes to spending cuts. Conservatives like Senator Ron Johnson (R-Wis.) agree with the House that now is the time to go big. “My sticking point has always been spending, spending, spending,” he told Family Research Council President Tony Perkins on “Washington Watch” Wednesday. “… [W]e don’t have a revenue problem, we have a spending problem. So are we willing to fix it? … We went from $4.4 trillion in 2019 to probably about $7.3 trillion this year. That’s a 63% increase [in spending]. There’s no justification for that. A reasonable pre-pandemic baseline would be no more than $6.5 trillion.”

Trump, the senator said, is committed to getting America back to those pre-COVID levels. “And I think, even more importantly, working with us to develop a detailed and rigorous process to actually achieve it. We’ve never had a process to control spending,” Johnson pointed out. “You may be interested to know the appropriation committees were established to control the big spending authorizing committees. Well, that didn’t work. The Budget Act didn’t work. Simpson-Bowles didn’t work. The Budget Control Act didn’t work. So I proposed a process very similar to a private sector budget review process, where you literally go line by line,” he explained.

“I would recommend involving senators, House members, and the administration,” the senator suggested. “And bring administration officials with their budget gurus and CFOs and literally go [through all] 2,400 individual expenditure lines in the 2025 proposed budget. We have to do that work. Nobody ever wants to do that.”

And honestly, Elon Musk’s team has put Congress in a great position to do that. “DOGE can be very useful,” Johnson observed. “Under reconciliation, we can only address mandatory spending, which is bizarre just in and of itself. So that leaves discretionary spending that has to be passed with Senate Democrats’ help. They won’t.” So he’s pushing an old process that several leaders are dusting off called “rescission” that lets the president claw back spending that’s already been approved. “I think they’re going to move forward on this as well. My recommendation was at least one rescission package a month where Elon and his DOGE group basically bundles up billions of dollars worth of spending rescissions, headlined by the most egregious examples of wasteful and abusive spending.”

At the end of the day, Johnson reminded people, “President Trump is a businessperson. If [your managers] say, ‘Hey, listen, I’ll let you grow your budget by the number of customers you’re serving and inflation — and you come back six years later and [those] budgets are 10% higher than that, you’d go, ‘What are you doing?! Knock it down back to the constraints I told you!’ That’d be a one-minute conversation, and it would be done. This would be easy.”

But unfortunately, Congress has let things get out of hand — with a big assist from the Biden administration. Now, as Speaker Johnson told Perkins, “It has to be Republicans who are [the] grown-ups” and govern responsibly.

Hammering out a bill that can pass both chambers’ wafer-thin majorities is the definition of “challenging,” but the Louisianan is “very optimistic about what we need to achieve over the days and weeks ahead of us.” He understands, “This is our opportunity to deliver what will be one of the most consequential pieces of legislation truly in the history of the Congress and our nation. And working together, we will get this done.”

Well, Perkins replied, “If anybody can defy history, it seems to be your speakership.” Let’s hope that holds for what’s certain to be a bumpy couple of months.

AUTHOR

Suzanne Bowdey

Suzanne Bowdey serves as editorial director and senior writer at The Washington Stand.

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EDITORS NOTE: This Washington Stand column is republished with permission. All rights reserved. ©2025 Family Research Council.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.

Trump and GOP Eye Tax Cuts, Border Wall, and Energy Expansion in First 100 Days

With at least one outlet calling the U.S. House for Republicans on Monday — which all but ensures a governing trifecta — President-elect Donald Trump and the GOP are set to enact a slate of policy priorities in the first 100 days of the new administration, including extending tax cuts, funding the completion of the southern border wall, and cutting regulations to expand the production of domestic oil and gas.

According to one Republican congressional aide, “The primary focus is simply on extending the Trump tax cuts and ensuring that we are on track to deliver on these campaign promises.” This could involve a further lowering of the corporate tax rate from 21% to 15%, removing taxes on Social Security income and tips earnings, and adding a deduction on state and local income taxes that was left out of the Tax Cuts and Jobs Act of 2017.

In order to pay for the tax cuts, Trump has proposed a 20% universal tariff on foreign-produced goods, with an added tariff of up to 60% for goods produced in China. Economists have mixed views on how beneficial tariffs will be for the economy. Some say they will create higher costs for consumers and businesses in the long-term and run the risk of other countries retaliating with their own tariffs, which could be detrimental for U.S. exporters. But experts such as Alex Muresianu, a senior policy analyst at the Tax Foundation, say that universal tariffs between 10% and 20% could raise as much as $3 trillion over a 10-year span.

Still, a recent report from the nonpartisan Committee for a Responsible Federal Budget projected that Trump’s extended tax cut plan could create $7.5 trillion in additional debt over the next decade. This figure was disputed by Rep. Byron Donalds (R-Fla.) over the weekend, who said that the report “doesn’t take into effect the impact of lower tax rates and economic growth as a result.”

As for the incomplete wall along the southern border, the GOP is pledging to finish the job that President Trump started and President Joe Biden refused to complete. Last week, House Majority Leader Steve Scalise (R-La.) stated that planned legislation could include funding to continue the wall’s construction, with construction in Arizona being the priority, sources told Reuters Tuesday.

Another high priority for the administration will be cutting red tape in the U.S. energy sector to increase production.

“The U.S. oil and gas industry [can] shake off oppressive regulation and start getting back to the business of producing oil based off supply and demand expectations, not making decisions trying to get guess what the next regulation is going to be,” Phil Flynn, an energy strategist at The PRICE Futures Group, told The Epoch Times.

Flynn further estimated that under the incoming Trump administration, the U.S. is likely to produce an extra one to two million barrels of oil per day. In addition, Rob Thummel, the senior portfolio manager at Tortoise Capital Advisors, projects that natural gas production will increase by 30 billion cubic feet per day by 2030.

The Biden-Harris administration has enacted a series of policies that have hamstrung the energy sector. In April, the administration increased the lease bond drillers must pay to operate on federal land from $10,000 to $150,000. This followed Biden’s restriction of liquefied natural gas (LNG) exports, which a federal judge overturned in July. Thummel stated that the incoming Trump administration “would immediately reinstate approvals of LNG projects.”

In addition, leases for energy companies to operate on federal land will likely increase dramatically. During the Biden-Harris administration’s first three years, they issued 1,400 leases. In comparison, the first three years of Trump’s first term saw over 4,000 leases issued.

As to the green energy policies of the incoming administration, experts say Trump will likely slow lucrative subsidies that were a primary focus of the Biden-Harris administration but is unlikely to attempt a complete halt. House Speaker Mike Johnson (R-La.) has suggested that not all subsidies will go away. “You’ve got to use a scalpel and not a sledgehammer, because there’s a few provisions in there that have helped overall,” he stated in September.

Energy experts believe that an “all of the above” approach will be most likely to both bring energy prices down and fortify U.S. dominance in the global energy sector. “A Trump administration has to be promoting all the above energy forms, because the only thing that really digs out of the economic issues that we’re facing with the debt burden that we have is something of an energy miracle,” Neil Winward, CEO of Dakota Ridge Capital, told The Epoch Times.

In a comment to The Washington Times, a Republican source summed up the mindset that the GOP will have on day one of Trump’s term, “We are hitting the ground running.”

AUTHOR

Dan Hart

Dan Hart is senior editor at The Washington Stand.

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EDITORS NOTE: This Washington Stand column is republished with permission. All rights reserved. ©2024 Family Research Council.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.

5 More Lies in Joe Biden’s 2024 State of the Union Address

The fallout continues over President Joe Biden’s 2024 State of the Union address, and his errors, lies, and misstatements continue to pile up. Here are five more false claims Biden made on Thursday night.

1. Biden Claims He Has Created 15 Million Jobs and 800,000 New Manufacturing Jobs

In speaking about his economic record, Biden boasted of creating “15 million new jobs in just three years,” including “800,000 new manufacturing jobs in America and counting.”

Most of the jobs Joe Biden has taken credit for “creating” were merely jobs destroyed by the 2020 COVID-19 pandemic lockdowns.

The economy under Joe Biden actually created about one-third that many new jobs: The economy added 5.49 million jobs above pandemic level in three years. President Donald Trump’s economy created 6.7 million jobs in the three years before the pandemic. Similarly, Joe Biden has added 114,000 manufacturing jobs, compared to the pre-pandemic level of February 2020. President Trump created 400,000 manufacturing jobs in the same period.

American workers have enjoyed little of this job growth. The U.S. workforce added 2.9 million foreign-born workers (legal or illegal), while there were 183,000 fewer U.S. citizens in the workforce between the fourth quarter of 2019 and the same period in 2023.

Some of this job growth is illusory, since a total of 8.3 million Americans hold multiple jobs, and 386,000 Americans are working two full-time jobs — a number that reached a 30-year high of 447,000 last September. More than two million people work two (or more) part-time jobs. And the number working-age Americans who are working, the labor force participation rate, remains below pre-pandemic levels.

2. Wages Are Up and Inflation Is Down under Biden?

Joe Biden touted his economy as a boon for middle-class workers, adding, “Wages keep going up. Inflation keeps coming down. Inflation has dropped from 9% to 3% — the lowest in the world and trending lower. … Consumer studies show consumer confidence is soaring.”

Real wages remain lower under Biden, thanks to soaring inflation sparked in part by massive rounds of stimulus-level government spending. Americans under Biden need to earn an extra $11,434 a year to maintain the same level of income they had before he took office. The average American, of course, has not closed the gap.

“Bidenflation” shows up in everyday prices: The cost of dairy products has risen 59 cents since February 2021. A loaf of bread costs more dough — 49 cents a loaf more. Other staples, utilities, and necessities have risen, including chicken (41 cents a pound), a dozen eggs (92 cents), gasoline (72 cents a gallon), home heating gas (29%), and electricity (21%).

Rather than address these concerns, Biden focused on shrinkflation and “junk fees.” Even Biden’s speechwriters felt the need to sell the public on their policy’s relevance, insisting, “It matters. It matters.” Biden’s focus invited withering criticism from his chief rival for the presidency. “Biden talked about the SNICKERS bars, before he talked about the border!” posted former President Donald Trump on Truth Social.

The Biden administration did give some indication of who benefitted from its policies: The White House invited Shawn Fain — president of the United Auto Workers, which had delayed its endorsement of Biden’s reelection — to the State of the Union address.

3. The Myth of Trump’s Muslim Ban

In his section on immigration, Biden attempted to distinguish himself from “my predecessor” by saying, “I will not ban people because of their faith.”

Biden is alluding to President Trump’s so-called “Muslim travel ban.” In December 2015, candidate Trump called for a “total and complete shutdown of Muslims entering the United States until our country’s representatives can figure out what is going on.” Then-President Barack Obama had admitted 12,500 scantly-vetted “refugees” from Syria. Trump also cited widespread, anti-American sentiment and terrorist activity throughout the Islamic world for decades, including a poll of Muslims from the Center for Security Policy which found “25% of those polled agreed that violence against Americans here in the United States is justified as a part of the global jihad.” But he never pursued such a policy in office, using model policies enacted by the Obama-Biden administration.

In his first week in office, Trump signed Executive Order 13769, placing a 90-day moratorium on some immigration from Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen. It also required vetting of people hailing from nations whose background checks do not meet U.S. standards. The move was far from unprecedented. Under the Visa Waiver Program Improvement and Terrorist Travel Prevention Act of 2015, Barack Obama imposed similar restrictions on anyone who was “present, at any time” in Iraq, Sudan, Syria, Libya, Somalia, and Yemen in the past four years. Yet activist courts initially ruled Trump could not impose the same policy, eventually accepting an amended version that barred immigration from Iran, Libya, Somalia, North Korea, Syria, Venezuela, and Yemen.

In 2020, Trump broadened this net of protection by excluding the terror-tied nations of Kyrgyzstan, Myanmar, Eritrea, Nigeria, Sudan, and Tanzania. (Muslims make up a mere 4% of Myanmar’s population, 0.3% of Venezuela’s population, and officially zero percent of North Korea’s.) The Supreme Court upheld the policy, Presidential Proclamation 9645, in Trump v. Hawaii (2017). Biden rescinded the executive order on his first day in office: January 21, 2021.

The threat proved to be anything but illusory. Authorities arrested a Syrian refugee, 21-year-old Mustafa Mousab Alowemer, for plotting to blow up a Christian church in Pittsburgh, Legacy International Worship Center, to support ISIS.

4. Making the Rich ‘Pay Their Fair Share’ of Taxes?

Joe Biden promised to enact “a fair tax code” by “making big corporations and the very wealthy finally begi[n] to pay their fair share. Look, I’m a capitalist. If you want to make, you can make a million or millions of bucks, that’s great. Just pay your fair share in taxes.”

The top 1% of income earners paid 42.3% of U.S. income taxes in 2020, the most recent year available, according to an analysis from the nonpartisan Tax Foundation. The top 10% paid 73.7% of income taxes. All told, the top half of income earners paid 97.7% of all taxes, while the bottom half paid 2.3%.

By contrast, a growing number of Americans paid no income tax. An estimated 57% of Americans paid nothing in federal income taxes in 2021, according to the Tax Policy Center.

By any just reckoning, the wealthiest Americans are paying their fair share of income tax — and a good deal of our share, as well.

5. Biden Has Not Raised Federal Taxes on Anyone Making Less than $400,000?

“Under my plan nobody earning less than $400,000 a year will pay an additional penny in federal taxes,” Biden claimed. “Nobody. Not one penny. And they haven’t yet.”

If Joe Biden has not squeezed more money out of those making less than $400,000, it’s not for lack of trying. Biden and congressional Democrats have endorsed numerous proposals that would have extracted more of the federal budget from those beneath Biden’s alleged income threshold. Those proposals include:

  • Expanding the number of items that must be registered under the National Firearms Act, with a $200 fee for each item
  • Reinstating the Affordable Care Act’s individual mandate and $695-per-person penalty, which President Trump eliminated
  • Imposing a carbon and/or methane tax. One proposal would charge companies $1,800 per ton of methane they handle (not emit), with the cost rising 2% above inflation each year
  • Increasing corporate taxes, which pass on approximately one-third of increased costs to consumers by raising prices (and another third by reducing payroll costs/hours)
  • Hiking cigarette taxes, which fall disproportionately on the working class

The greatest way Biden has funded the federal budget at the expense of the middle class is through inflation. As Henry Hazlitt explained in his classic book “Economics In One Lesson”:

“Inflation is a form of taxation. It is perhaps the worst possible form, which usually bears hardest on those least able to pay. … It discourages all prudence and thrift. It encourages squandering, gambling, reckless waste of all kinds. It often makes it more profitable to speculate than to produce.”

Here is the previous collection of “14 Lies and Myths in Joe Biden’s 2024 State of the Union Address.”

AUTHOR

Ben Johnson

Ben Johnson is senior reporter and editor at The Washington Stand.

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EDITORS NOTE: This Washington Stand column is republished with permission. All rights reserved. ©2024 Family Research Council.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.