Last Updated on 3 weeks by abdirahman dahir
Washington, D.C. — House Republicans introduced a sweeping tax proposal Friday to extend and expand key provisions of President Donald Trump’s 2017 Tax Cuts and Jobs Act (TCJA), setting the stage for a major legislative battle as the law’s expiration looms.
GOP leaders framed the plan as a win for working families. “The Trump tax cuts fueled historic growth and put money back in Americans’ pockets,” said committee chairman Jason Smith (R-Mo.). “This bill locks in those gains and goes further.”
The draft legislation, advanced by the House Ways and Means Committee, would:
- Raise the child tax credit from 2,000 to 2,500 per child.
- Boost the estate tax exemption from 13.9 million to 15 million.
- Make permanent the TCJA’s tax cuts, which are currently set to expire at the end of 2025.
Republicans argue that letting those tax cuts lapse would mean a steep financial hit for millions. “Seven years ago, the Trump tax cuts sparked an economic boom and provided needed relief to working families,” said House Ways and Means Chairman Jason Smith. “Pro-family, pro-worker tax provisions are the heart of President Trump’s economic agenda that puts working families ahead of Washington.”
Smith added that Republicans on the committee had spent two years preparing for this legislative moment and were determined to follow through.
Notably missing from the bill, however, is a higher tax bracket for millionaires — something Trump has floated publicly in recent months. According to a source familiar with the matter, the president had considered a 2.6% tax increase on individuals making $2.5 million or more per year. That change could still be added as the bill moves through Congress. According to Fox News
More Trump-backed proposals are also expected to make it into the final version. These include eliminating federal taxes on income from tips, overtime, and even Social Security payments — all aimed at relieving pressure on middle- and working-class Americans.
To push the bill through the Senate without needing 60 votes, Republicans plan to use the budget reconciliation process. That procedural tool allows legislation to pass with a simple majority, the same margin needed in the House, though Republicans’ lead there remains slim.
The House Ways and Means Committee is set to begin debate on the bill Tuesday, with amendments and changes likely before it heads for a full vote.