Republicans are gearing up for an ambitious 100-day agenda with President-elect Donald Trump in the White House and GOP lawmakers in a congressional majority. The top priority on their list is renewing approximately $4 trillion in expiring GOP tax cuts, a significant achievement of Trump's first term.
The tax cuts, a hallmark of Trump's initial presidency, primarily benefited higher-income households, with the top 1% receiving a substantial income tax cut. The discussions around these tax cuts will reignite debates on income inequality and the government's role in addressing it.
Preparations for Trump's return involve proposals to extend and enhance tax breaks, including maintaining various tax brackets and deductions for individual earners. The Congressional Budget Office estimates that keeping these provisions in place could add $4 trillion to deficits over a decade.
Trump aims to include his priorities in the tax package, such as lowering the corporate tax rate to 15% and eliminating individual taxes on tips and overtime pay. Some Republicans argue that the tax breaks will pay for themselves through potential economic growth, while others suggest using revenue from Trump's tariffs to offset costs.
Additionally, the new Congress will consider spending reductions, particularly targeting food stamps and health care programs. One expected cut is the COVID-19-era subsidy that helps individuals purchase health insurance through the Affordable Care Act exchange.
Republicans plan to use the budgetary process of reconciliation to pass these measures, allowing for majority approval in Congress without the threat of a filibuster. However, the resistance from Democrats poses a challenge to achieving these goals.
House Speaker Mike Johnson has promised a rapid pace in the first 100 days to address pressing issues. The upcoming debates and decisions will shape America's priorities, income disparities, and the government's fiscal policies in the years ahead.
