By David Morgan
WASHINGTON (Reuters) – Republicans’ power grab in Washington next year will allow President-elect Donald Trump to pursue an aggressive agenda of tax cuts for corporations, workers and retirees that will support his party’s oft-stated goal of reining in the government’s $35 will be put to the test. trillion in debt.
Initial priorities are expected to include extending Trump’s 2017 tax cuts, financing the wall along the U.S.-Mexico border, reducing unspent funds allocated by Democrats, eliminating the Department of Education and limiting the powers of agencies, including the Consumer Financial Protection Bureau, the Republican party said. lawmakers and aides.
Republican leaders view these priorities as a first step toward ensuring vibrant economic and job growth for the country, as well as tighter controls on immigration.
“It’s time to get started. Together we will make America great again,” said House Majority Leader Steve Scalise, the chamber’s second-ranking Republican after Trump’s election.
But Trump’s agenda threatens to sink the U.S. government trillions of dollars further into debt as borrowing costs rise, posing a challenge to Republicans who have long trumpeted the need to reduce a budget deficit that will end in the 2024 fiscal year passed the $1.83 trillion mark, with interest on the debt exceeding $1. trillion for the first time.
A majority of Americans – 62% – believe Trump’s policies will increase the national debt, according to a Reuters/Ipsos poll concluded on November 7.
With Democrats likely to offer only opposition to the Trump agenda, Republicans will have to get results using a parliamentary tool known as budget reconciliation. This would allow them to pass legislation related to spending or revenue while bypassing the Senate’s “filibuster” rule, which requires 60 votes. of the 100 members who agree on most legislation.
Republicans used reconciliation in the first two years of Trump’s first term, as did Democrats during the first two years of President Joe Biden’s term when they had control of Congress.
Some hardline conservatives indicated they might not support tax cuts without offsetting cuts, such as to Social Security, Medicare and Medicaid programs.
“There’s no guarantee I’ll just continue with the same old business as usual. I doubt I would do that,” said Sen. Ron Johnson, a Wisconsin hardliner who sees a major overhaul of the tax code and cuts to mandatory spending programs. than the entitlements needed to cover the costs of Trump’s tax cuts.
“Either we make big changes now or we will be forced to make big changes in a horrific debt crisis,” Johnson said.
FIRST TEST
The first test for the new Republican-controlled Congress is expected in January, when lawmakers seek agreement on a 2025 budget resolution that must be passed by both chambers to unlock the reconciliation tool.
“Some people who are really never going to be satisfied with any budget proposal that might ever come through Congress are going to have to understand that we’re only doing this for the sake of reconciliation,” said Republican Senator Mike. Rounds.
The tax-cut proposals Trump made during his campaign — from extending the 2017 tax cuts to eliminating taxes on tips, overtime and Social Security benefits — could add $7.5 trillion to the national debt over the next decade, the nonpartisan committee said for a Responsible Federal Budget.
Republicans argue they can make up for lost tax revenue by boosting economic growth and streamlining the federal government through spending cuts and a new Department of Efficiency, which Trump said will be led by billionaire Elon Musk.
“Our goal would be to recover probably a trillion dollars from the so-called Inflation Reduction Act,” said Rep. Andy Harris, chairman of the ultraconservative House Freedom Caucus, referring to a bill full of green energy tax credits that Democrats have in 2022 accepted. .
Trump repeatedly proved his ability to drive the party’s agenda during his four years out of power — most notably by telling lawmakers to scrap a bipartisan immigration bill early this year. Once he returns to the Oval Office, his influence within the caucus will only be stronger.
Over the past two years, members of the restive and narrow Republican majority in the House of Representatives have repeatedly gone their own way, voting against bills supported by their leaders and relying on Democratic support to pass bills that must be adopted.
Should the 60-vote filibuster rule block a Trump priority next year, he could call on Senate leaders to abolish it, as he repeatedly pressured them early in his first term, and as some Democrats pushed early in Biden’s term.
Intra-party disagreements could also be exacerbated by the limited nature of reconciliation, which leaves out non-budgetary priorities such as hot-button border and culture war issues.
But Senate Republican leader Mitch McConnell, who is due to step down in January, sidestepped questions about party unity and pointed to the successes of previous narrow majorities.
“It’s harder,” McConnell said. “But I think we were successful before with a narrow majority and I think we will do that again.”
(Reporting by David Morgan; Editing by Scott Malone and Daniel Wallis)
