11/14/2024

House Republicans Eager to Pass Tax Reform Early Next Year

They want a major legislative victory within Trump's first 100 days

Republicans are vowing to push for new tax cuts early next year to give incoming President Donald Trump a major legislative victory within his first 100 days in office.

Trump ran on a promise of extending a bevy of tax breaks set to expire and some expensive new tax changes, such as exempting tipped wages and overtime pay from taxes, along with Social Security benefits. His 2017 Tax Cuts and Jobs Act (TCJA) also cut the corporate tax rate from 35 to 21 percent; Trump said on the campaign trail he hoped to lower it further to 15 percent.

House tax writers have said that offsetting the cost of tax cuts could result in tax hikes that target specific sectors. ASAE has formed a Tax Reform Coalition to aggressively defend the tax-exempt sector from increased taxation (see this related story).

With Republicans given the governing trifecta next year (White House, Senate and House control), GOP leaders could move to pass tax legislation through the reconciliation process, which would allow a bill to pass the Senate with a simple 51-vote majority, avoid a potential filibuster. House Speaker Mike Johnson (R-LA) and other GOP leaders have been meeting for months to plot strategy at the start of a second Trump administration.

What they're saying: House Ways and Means Committee Chairman Jason Smith (R-MO) said this week, "The American people gave Congress a mandate to provide relief from the Democrats' 'cost-of-living crisis.' Ways and Means Republicans are ready to partner with President[-elect] Trump to build an economy that helps working people and build on the success of his 2017 tax cuts. Ways and Means Tax Teams have spent this year preparing for the 2025 Super Bowl of Tax and held over 120 listening sessions in 20 different states."

This article was provided to OSAP by ASAE's Power of Associations and Inroads.