OPINION: This article may contain commentary which reflects the author's opinion.
Congressional Republicans are divided over how to advance President-elect Donald Trump’s agenda, with a debate over tax policy dominating the final weeks before his inauguration.
As Republicans prepare to assume unified control of Washington in January, they are weighing competing priorities. Incoming Senate Majority Leader John Thune (R-SD) has proposed a quick legislative victory on energy and border security, unveiling a plan on Tuesday to combine these measures with a broader defense bill, the Washington Examiner reported.
Thune’s proposal has faced a lukewarm reception in the House, particularly from members of the Ways and Means Committee, who are concerned that delaying a deal on tax reform until later in the year, as the South Dakota Republican wants, could sideline their bill entirely.
The timing is critical because Republicans may have only two chances to pass their agenda without needing Democratic support. Each year, they can use a process called reconciliation to bypass the filibuster and pass spending priorities with a simple majority of 51 votes in the Senate.
In theory, Republicans could address tax reform in October when the new fiscal year begins, but House tax writers view this approach as an unnecessary gamble, especially with the Trump-era tax cuts from 2017 set to expire at the end of 2025.
Lawmakers, led by Rep. Jason Smith (R-MO), chairman of the House Ways and Means Committee, are advocating for border security and energy reform to be combined into a comprehensive tax package instead.
“House Republicans are unified that we’ve got to deal with border, energy, and taxes. I think reasonable people are trying to figure out, tactically, what’s the right way to deliver that,” one House GOP lawmaker familiar with the discussions told the Examiner.
“Frankly, it all comes down to this central question: Is it better to have a narrow package that puts points on the board right away? Or is it better to spend a few more months putting together a comprehensive package?” the lawmaker added.
The dispute highlights the challenges Republicans will face in maintaining unity next year. With a limited timeframe to advance Trump’s agenda, the party has little margin for error if they choose to act without Democratic support, notes the outlet.
Republicans will begin the year with a razor-thin majority in the House, the same narrow margin that previously thwarted efforts to pass a budget without bipartisan backing. In the Senate, they have a slim three-seat majority.
Thune’s plan, unveiled during a Senate GOP policy retreat, offers the advantage of giving President-elect Trump an early policy victory on one of the defining issues of his campaign: border security.
While Republicans are unlikely to use reconciliation—a budgetary tool—to enact sweeping policy changes, they can leverage it to address measures with a direct impact on the deficit, as allowed by the Senate parliamentarian. However, they can allocate additional funds for border wall construction or hiring more agents.
“House tax writers, for their part, are worried their package will lose votes if it does not include deal-sweeteners on the border or energy reform. Restoring the state and local tax deduction, in particular, will be a point of contention for Republicans in higher-income states,” the Examiner reported, adding: “Speaker Mike Johnson (R-LA) has not yet taken a position on how to proceed, telling reporters on Tuesday there are “pros and cons” to both approaches.”
In the Senate, Thune is actively gaining support for his proposal, as members shared differing opinions during Tuesday’s retreat.
“I don’t think there was any consensus on what the sequencing should be,” said Sen. John Cornyn (R-TX), a senior member of the Finance Committee. “There’s going to have to be a whole lot more consultation and socializing the issues,” he added.
Sen. Steve Daines (R-MT), another Finance member, called the get-together an early chance to “digest what’s in front of us and to find the smartest path forward.”
