Trump Pushes New Tax Cuts Amid GOP Doubts, Economic Feasibility in Question”
Donald Trump has made achieving “energy dominance” key to his economic pitch.Kamil Krzaczynski / AFP – Getty Images
President Donald Trump is aiming to expand on his 2017 Tax Cuts and Jobs Act (TCJA) by eliminating taxes on tips, Social Security benefits, and overtime pay—moves he claims would fulfill his campaign promises. However, conservative economists and Republican lawmakers remain skeptical about the likelihood of these proposals gaining traction in Congress.
During a speech to the House GOP caucus at his Doral club in South Florida, Trump reiterated his commitment to these tax reforms. “We’re working very hard to get them done,” he said, according to Wall Street Journal tax analyst Richard Rubin.
While the proposals sound appealing on the surface, conservative economist Brian Reidl poured cold water on their viability. Writing on X (formerly Twitter) Monday, Reidl said, “Hill Republicans are spending so much effort building a spending cut package to reduce the net cost of the TCJA extension (and possible SALT expansion), I cannot imagine there being much appetite to then blow their deficit numbers back up with this nonsense.”
Reidl noted that in his meetings with House and Senate Republicans, the focus has remained squarely on extending the TCJA and dealing with state and local tax (SALT) deduction reforms. The SALT cap, enacted in the 2017 tax bill, was designed to target wealthier earners in higher-tax states but has since become a contentious issue. Efforts to modify or repeal the cap have divided lawmakers, with concerns that it disproportionately benefits affluent taxpayers.
Trump’s proposed tax cut on tips has gained attention for its political appeal, even drawing support from his political rival, former Vice President Kamala Harris, who adopted a similar policy during her campaign last year. However, experts have warned that eliminating taxes on tips could create administrative confusion and fail to provide meaningful relief to low-income workers.
Reidl and other critics argue that the GOP’s current fiscal priorities leave little room for Trump’s additional tax proposals. “In my tax meetings with House and Senate Republicans, the entire tax focus has been on the TCJA,” Reidl stated. “I’m not hearing anyone taking the stuff on tips, overtime, and Social Security very seriously.”
The pushback underscores the broader challenges Trump faces in selling his tax agenda to a Republican Party increasingly focused on fiscal discipline. Many GOP lawmakers are prioritizing spending cuts to offset the costs of extending the TCJA while resisting new measures that could balloon the federal deficit.
As Trump continues to campaign on these promises, his ability to align his proposals with the GOP’s fiscal priorities remains uncertain. While his plans may resonate with voters, the political and economic hurdles suggest that their implementation will face significant challenges in Congress.
