New Senate Majority Leader John Thune acknowledged on Sunday that expected future Republican tax cuts may not be fully funded, but said one of his top goals is to reduce the nation's “fiscal chaos.” ” to deal with it.
Thune (R-S.D.), 63, who formally took over the baton as Senate president from Mitch McConnell on Friday, emphasized his intention to focus on issues for the long term.
Asked on NBC's “Meet the Press” about the “mark” he wants to leave behind during the presidential campaign, the Republican said, “I don't want to do anything across the country that will affect our long-term stability or the future of our children and grandchildren.” I would like him to go as a member of the public,” he said. his tenure. “We are in financial disarray, $3[6] Trillion in debt.
“But I think first and foremost it's about protecting the country,” Thun added of the challenges facing the United States. “Military readiness is a top priority for me.”
President-elect Donald Trump and the Republican Party will have to take into account issues such as the expiration of the 2017 tax cuts, the expiration of expanded subsidies in the Affordable Care Act, and reinstatement of the debt ceiling, and will need to take into account issues such as the expiration of the 2017 tax cuts, the expiration of expanded subsidies in the Affordable Care Act, and the reinstatement of the debt ceiling. It is expected to face a crisis.
Republicans have said they want to extend the 2017 tax cuts and add other reforms the 78-year-old Trump advocated during his campaign, including making tips tax-free and Social Security checks tax-free. There is.
Extending these tax cuts could add $3.59 trillion to the budget deficit from 2025 to 2034. According to estimates From the Tax Foundation.
Thune acknowledged that even with spending cuts and other measures, Republicans may not be able to pay for the tax reform in its entirety.
When asked about potential bill payments, Thune said: “Well, probably not the full amount.” “What I'm talking about is a combination of growth and offsetting and a combination of expectations. If we want to avoid a $4 trillion tax increase, I think we're going to have to do something to extend the tax increase. ”Current tax system. ”
Republicans have long argued that estimates of revenue generated from economic growth through tax cuts tend to be underestimated in scoring.
“I think there will also be a robust conversation about whether we can find and achieve spending reductions that will help offset some of that,” Thune explained.
“Many of the tax provisions now enacted and extended by law will have a very positive impact on economic growth,” the Senate Republican leader said. “With growth comes not only higher-paying jobs, but also more tax revenue.”
To pass their tax agenda, Senate Republicans intend to use a process called “reconciliation,” which requires a simple majority to pass budget bills. As for the Republican plan, there is a 60-vote threshold to overcome the Senate filibuster, which is all but guaranteed by Democrats, so they will likely have to rely on that.
Senate Republican leaders are in favor of introducing two major “reconciliation” bills in the Senate to help President-elect Donald Trump carry out his policies.
The first would be bills that address borders, energy, and national defense. The goal would be to get it to President Trump's desk and help him win early. And later this year, a second bill, generally seen as a more complex bill, will advance tax reform.
In the House, Republicans, including Speaker Mike Johnson (R-Louisiana) and his top tax writer and Ways and Means Committee Chairman Jason Smith (R-Missouri), are seeking a single bill to implement all of these reforms. supports the bill. President Trump is reportedly open to that strategy.
During the 2024 Republican presidential primary involving Trump, Thune publicly supported his colleague, Sen. Tim Scott (R-South Carolina), as a presidential candidate. Nevertheless, Thune insisted he could work with Trump and said the relationship between the two countries was “evolving.”
“It's evolving and I think we have a relationship where we understand what each other wants to achieve,” Thun said. “There's an alignment of incentives. We want to get to the same destination.”
Thune praised Johnson for navigating a chaotic House Republican conference.
“He has a really, really tough job,” Thune said of Johnson. “I think he's been courteous to the members. … But he has a lot of people who are going in a different direction.”
