The Struggle to Pass Trump's Tax Plan

In the heart of Washington, a marathon session unfolded as Republicans on the House Ways and Means Committee approved a tax reform bill after an exhausting overnight debate. The bill, championed by former President Donald Trump, faces a rocky road ahead. House Speaker Mike Johnson was up late, trying to smooth out the wrinkles in Trump's plan. The GOP is divided, with some conservatives arguing that the proposed Medicaid work requirements are too soft, while others from high-tax states want deeper state and local tax deductions. The Freedom Caucus, known for its conservative stance, is not happy with the current Medicaid work requirements. They see it as a joke and want more cost-cutting measures. On the other hand, Republican lawmakers from states like New York are pushing for better state and local tax deductions for their voters back home. Rep. Chip Roy from Texas summed it up, saying there's a huge divide within the party. The goal is to wrap up this massive package by the end of the week. This package includes hundreds of pages of text, covering $5 trillion in tax breaks and at least $1. 5 trillion in spending cuts on Medicaid, food stamps, and green energy programs. Democrats are not on board, calling it a handout to the wealthy at the expense of safety net programs. Johnson, however, is confident that the Republican majority will push it through by Memorial Day, sending it to the Senate for further review. Democrats are not sitting idle. They stayed up all night, pushing for marathon public hearings and proposing hundreds of amendments. Most of these amendments failed, but it shows their determination to challenge the bill. Rep. Jim McGovern from Massachusetts called the bill cruel and rotten, highlighting the impact on programs like SNAP, which helps millions of Americans put food on the table. The Congressional Budget Office weighed in, saying that at least 7. 6 million fewer people would have health insurance with the proposed Medicaid changes. Additionally, 3 million fewer people would participate in the SNAP food program each month. Republicans are targeting these programs for cuts, aiming to offset the costs of the tax package and achieve their goal of shrinking the social safety net. Most of the savings would come from stricter work requirements, meaning fewer people would qualify for aid. The debate over state and local taxes is another hot topic. Lawmakers from states like New York, California, and New Jersey are pushing for better deductions. They rejected an offer to triple the deduction cap, showing their dissatisfaction. Rep. Nick LaLota from New York said the talks were cordial but no deal was reached. The lawmakers believe they have leverage, as the current $10, 000 limit expires at the end of the year. As the deadline approaches, conservatives are pushing for their priorities to be met. They want deeper spending cuts and earlier implementation of work requirements. Rep. Eric Burlison from Missouri is currently a no, but he's working on improving the bill so he can support it. The Republicans are in a race against time to extend Trump's tax breaks, which are set to expire later this year, while adding new ones he campaigned on for 2024. A new analysis shows that most tax filers would see lower rates, except those earning less than $15, 000 a year, who would see an increase.