House Republicans debate budget over tax deduction limits, health insurance
House Republicans are working to finalize a budget on President Donald Trump's agenda by next week, but competing demands over state and local taxes could delay its passage.
House Republicans are working to finalize a budget on President Donald Trump's agenda by next week, but competing demands over state and local taxes could delay its passage.
House Republicans are working to finalize a budget on President Donald Trump's agenda by next week, but competing demands over state and local taxes could delay its passage.
House Republicans are grinding on a budget by next week, but competing demands from members within their own party over the state and local tax deduction limits could cause delays.
Republicans from largely blue states are proposing to triple the state and local tax deduction cap from $10,000 for couples to $30,000.
But House Republicans from high-tax states like California and New York want an even higher limit.
noted that any increase in state and local taxes would need to be offset with savings elsewhere.
"One of the, the key pieces of this equation to sort of meet the equilibrium point that everybody can be satisfied with," Johnson, R-La., said. "Not everyone is going to be delighted with every provision on a bill this large, but everyone can be satisfied."
On Thursday, Johnson said lawmakers would work through the weekend to find common ground between those who believe they were cutting too little and those who think they were cutting too much from the current budget proposal.
"We're far from a fix on SALT (state and local taxes), so still nowhere close to a 'yes' on this," , R-N.Y., said.
"I think it's coming together. I think we're like 90% there, 95% there," , R-Neb., said. "I think it's more finite details that we're working on."
Passing the budget will not be easy. Johnson has only on the bill, and similar disagreements in the Senate could delay passage.
Meanwhile, Democrats have expressed opposition to Republicans' proposed budget, citing potential health care cuts to millions of Americans. In , Democrats highlighted that cuts to Medicaid and subsidies that lower the cost of private health insurance through the Affordable Care Act could result in more than 7 million people losing Medicaid coverage and roughly over 13 million losing health care coverage overall.
Democrats also said that Republicans are partially funding their tax cuts by , arguing that removing the programs could cost the government, economy and families more in the long run. The cuts could potentially risk nearly 1 million jobs and $80 billion in private investment going overseas. They also noted that millions of Americans have claimed green energy credits since the IRA programs began in 2022.