The Republican Party faces internal divisions over President Trump's tax and spending package, originally dubbed "one big, beautiful bill." Disagreements over spending cuts between conservatives favoring deep cuts and moderates concerned about the impact on social programs are hindering progress.
The inability to reach a consensus on spending reductions could lead to a smaller tax cut package than initially envisioned. The proposed $4.5 trillion package may shrink to $4 trillion, and the possibility of making the cuts permanent is fading. The White House is even considering allowing the top marginal income tax rate cut to expire, raising it from 37 percent to 39.6 percent for the highest earners.
The plan depends on Republicans identifying $1.5 trillion in federal budget cuts (down from an initial goal of $2 trillion). House Republicans are demanding real spending cuts to avoid increasing the deficit, rejecting budget gimmicks. Senators are also pushing for significant budget reductions. The complexity and scale of the bill are leading to growing frustration within the party.
Concerns include:
Some Republicans suggest a piecemeal approach might be more effective than a single, large bill.