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President Trump wants a massive tax cut and immigration crackdown bill. Now Republicans must decide what to cut to help pay for it.
- Jan. 23, 2025Updated 5:17 a.m. ET
Top Republicans are passing around an extensive menu of ideas to cover the cost of a massive tax cut and immigration crackdown bill. They could create a 10 percent tariff on all imports, bringing in an estimated $1.9 trillion. They could establish new work requirements for Medicaid recipients, bringing in $100 billion in savings.
They have even calculated that they could generate $20 billion by raising taxes on people who can use a free gym at the office, according to a 50-page list of options that the House Budget Committee has circulated in recent days.
The bigger challenge for Republican leaders is trying to figure out what can pass Congress and be signed by President Trump. With slim majorities in both chambers, they are searching for the right mix of policy changes that could offset some of the costs of Mr. Trump’s most expensive proposals, placating spending hard-liners who are concerned about ballooning the government’s debt, while also maintaining the support of more centrist members who are loath to slash popular programs.
House Republicans huddled in the Capitol on Wednesday to discuss a mix of options on the table.
Complicating their task is a political challenge: Many of the cuts Republicans are contemplating target programs aimed at helping low-income Americans, all in the service of paying for the extension of tax cuts that disproportionately benefit the wealthy.
The overarching goal is to push through a behemoth bill that cuts taxes and clamps down on immigration using a process called reconciliation, which would allow Republican leaders to avoid a filibuster and move legislation through the Senate with a simple majority, even if all Democrats are opposed.
