President-elect Trump and the Republican Party have spent years strengthening their signature 2017 tax law and setting the stage for even more sweeping changes to the tax code.
After sweeping the White House and Congress, his chance finally arrived.
President Trump and Congressional Republicans aim to extend the 2017 cut in personal income tax rates, the centerpiece of the Tax Cuts and Jobs Act, which is set to expire in 2026. Republicans are also considering further cuts to the corporate tax rate, and Trump himself has proposed eliminating taxes on tips and Social Security benefits.
Introducing the five key players in the fight over Trump's tax cuts
Treasury Secretary Candidate Scott Bessent
Mr. Bessent is expected to play an important role in promoting the tax bill as President Trump's right-hand man regarding overall financial and economic policy.
During the first Trump administration, former Treasury Secretary Steven Mnuchin was a key envoy between the White House and Congress as Republicans assembled the TCJA.
While policy discussions typically center on Trump himself, Bessent could wield significant influence both on the president's thinking and how lawmakers write legislation.
Bessent, an investor who backed the Trump campaign, is known for his Wall Street experience and knowledge of currency markets. His background could be helpful as President Trump and the Republican Party push for changes to corporate tax rates and international tax rules.
Senator John Thune (RS.D.)
As the new leader of the Republican conference, Thune will be responsible for passing the tax bill through the Senate.
The next Senate majority leader could face many obstacles along the way.
Despite considerable resistance from President Trump's closest allies, Thune was selected to replace Senate Minority Leader Mitch McConnell. MAGA Republicans have long viewed Thune, like McConnell, as part of the Republican establishment desperately trying to contain Trump's influence.
The frosty relationship between Trump and Thune could be tested by how long the Senate delays. The senator's influence could limit what Republicans can pass through budget reconciliation, potentially setting off another flash point between the White House and the Senate.
Thune will also have to consider the pressures Senate Republicans face as they prepare to defend several vulnerable incumbents ahead of the 2026 midterm elections. Election forecasters expect Republicans to defend their majority in unfavorable conditions and face stiff challenges from the usual backlash against presidents of their own party.
Speaker Mike Johnson (R-Louisiana)
Mr. Johnson is on track to secure reelection as speaker despite intense questions about his political future because of his ability to maintain good relations with rival factions of the Republican Party.
That skill set will face a serious test as Republicans seek to pass a major tax bill and the necessary budget resolutions before that within a 100-day goal.
Johnson will once again be presiding over a razor-thin Republican majority, giving any small group of Republicans the power to block the bill from passing. The speaker must juggle the competing interests of his own members while coordinating with President Trump and the Senate to pass the bill.
Fiscal hawks, wary of spiraling further into the nation's $36 trillion debt, may refuse to support the bill unless it cuts spending enough to offset the reduction in tax revenue.
More than a dozen Republicans in blue states have also warned Johnson against cutting Inflation Control Act credits that are key to the health of their districts.
Additionally, several Republican lawmakers from high-tax states have advocated increasing the state and local tax credit (SALT) in any tax bill. This deduction was cut in the 2017 tax bill, but President Trump has promised to reinstate it in his next bill.
House Minority Leader Hakeem Jeffries (New York)
After Trump took office, Jeffries became the top Democratic Party in Washington and became the tip of the spear for resistance to Trump's tax bill.
Republicans are expected to use budget reconciliation to advance their tax bill, which would allow them to pass the bill with a simple majority in both chambers without needing Democratic support.
While Republicans are on track to go it alone, Jeffries could face pressure from moderate members of his caucus who want to make a statement by supporting the big tax cut bill. be.
Mr. Jeffries may also have an opportunity to slow the march toward tax cuts with amendments and other legislative maneuvers aimed at fomenting divisions within the Republican Party.
Congressman Jason Smith (R-Kentucky)
As chairman of the House Ways and Means Committee, which handles tax policy, Smith will play a key role in crafting the final tax bill and preparing it for passage by the House.
Smith won the gavel on one of the House's most powerful committees in 2023, succeeding former Ways and Means Chairman Rep. Kevin Brady (R-Texas) as the committee's top Republican.
Mr. Brady is already a veteran lawmaker, endearing himself to Mr. Trump and solidifying his position as a key figure in passing the TCJA through the House in his first term.
A similar effort by Mr. Smith, 44, could raise the lawmaker's stock among Mr. Trump and his Republican colleagues while also attracting the attention of deep-pocketed K Street donors eager to pass legislation.
