Former House Speaker Newt Gingrich (R-Ga.) has encouraged President-elect Trump and the Republican Party to pass tax cuts as part of a single broad reconciliation bill, with the Republican House majority in a narrow state. He argued that the outcome would depend on the performance of the U.S. economy.
In an interview with The Hill on Wednesday, Mr. Gingrich called for a “big, beautiful bill” and pointed to similarities between the timing of the tax cuts and Republican electoral success in past Congresses.
“In 1981, Reagan passed huge tax cuts. I was a part of that as a congressman, too. But they didn't go into effect until 1983. So in 1982, there was no economic benefit and 26 seats ,” Gingrich said.
Gingrich argued that a lack of urgency to cut taxes and a focus on repealing the Affordable Care Act cost Republicans 40 congressional seats in 2018.
“You can't win by defending your margins. We have to expand our margins,” he said. “There are at least 12 Democratic seats held by Trump, so we have to get out. We have to have a plan. [2026] The economy will boom or else there is no hope. ”
Republicans are not unified on how to advance their agenda in Congress, which spans issues such as border security, extending tax cuts and increasing fossil fuel production.
Their decisions could have a major impact on the 2026 midterm elections, in which Republicans need to maintain a narrow House majority and make gains in the Senate.
“After two and a half months of talking about tax cuts, affordability and job creation, I'm confident the bill will pass the House and the Senate. But we can't do it twice,” Gingrich said.
He added that the bill needs to be passed and signed by Independence Day to give Republicans a boost during the midterm elections.
President Trump is scheduled to meet with Senate Republicans on Wednesday afternoon to discuss the path forward.
Late last year, Senate Majority Leader John Thune (R.S.D.) split his agenda into two separate bills, with the first focused on energy policy and border security, and the second focused on tax reform. The plan was announced.
The budget reconciliation process allows Republicans to pass major policy legislation without Democratic support.
But there are doubts, especially among tax officials on the House Ways and Means Committee, about the feasibility of passing two reconciliation bills in one year, which they say prioritize tax cuts. .
House tax officials said they would like to hear from President Trump about how to proceed, but Trump has not taken a hard line and said he would like to introduce a single bill, but not two. He also stated that he was willing to submit the following.
According to the Congressional Budget Office, the Trump tax cuts passed in the 2017 Tax Cuts and Jobs Act (TCJA) actually boosted economic growth by 0.3% in the year after they were passed. According to the Congressional Research Service (CRS), the economy needed to grow by 6.7% to pay for itself.
Contributed by Judy Kurtz.
