On June 12, American House Speaker Mike Johnson stated during a meeting with Senate Republicans that if the Republican Party could control both Congress and the White House next year, he would prioritize tax cuts as a top agenda item in the House of Representatives.
After the meeting with Senate Republicans on Wednesday, Johnson told reporters that if his party could unify control in Washington next year, he would focus on tax cuts and “regulatory reform” – cutting government regulations – as his two biggest priorities.
Johnson did not provide many details about his plans, but in light of the expiration of most individual tax cuts from the 2017 tax law introduced during the Trump administration in the coming months, the Republican Speaker stated, “We need to extend tax cuts. Otherwise, we will face the largest tax increase in American history.”
During the Wednesday meeting, Johnson emphasized the use of reconciliation as a procedural tool to advance the Republican agenda. Reconciliation allows legislation to pass in the Senate with a simple majority vote, bypassing the 60-vote threshold. Both parties have used reconciliation in the past to advance reforms on healthcare and tax policies.
However, some Republican lawmakers believe the focus should be on winning the election. Republican Senator Josh Hawley from Missouri said, “Trump’s tax cuts are expiring next year, so I am confident that if we control both chambers of Congress and the White House, as you would expect, we will try to achieve this goal through reconciliation. And the priority is to concentrate on winning the majority.”
Unlike Republicans, most Democratic members of Congress do not support tax cuts; they are concerned that tax cuts will increase the U.S. national debt. Senate Majority Leader Chuck Schumer cited data recently released by the Congressional Budget Office (CBO), stating that if the Republicans extend the Trump-era tax cuts, it would “increase the deficit by $4.6 trillion.”