The House Ways and Means Committee approved a Republican tax package after a marathon and contentious hearing, which will now move to the Budget Committee for final shaping. The bill, which includes both tax cuts and hikes on specific targets, faces a major unresolved issue regarding the expansion of the state and local tax deduction. Despite opposition from some Republicans, the legislation is set for a full House vote by Memorial Day.
The hearing, which lasted nearly 16 hours, was marked by intense partisan clashes, with Democrats accusing Republicans of favoring the wealthy while Republicans defended the plan’s provisions such as expanding the Child Tax Credit and creating new breaks for tips and overtime pay. The bill is projected to cost $3.8 trillion, with average earners seeing significant tax cuts in 2027, while well-to-do taxpayers would benefit the most. The legislation is primarily aimed at preventing a slate of tax cuts from expiring at the end of the year, though it includes provisions demanded by both President Donald Trump and GOP lawmakers.
Democrats offered failed amendments to preserve green energy incentives from the Inflation Reduction Act and credits to expand health care coverage under the Affordable Care Act. They also offered four separate amendments to block tax cuts for top earners, hit Trump’s tariff policies, proposed expanding incentives for child care and tried to block a credit for school choice. The hearing began with a packed house when it opened at 2:30 p.m. Tuesday. The cavernous committee room was standing-room only, thick with lobbyists and staffers. The crowd was still healthy as midnight approached, but as the hearing wore on, it gradually thinned, with observers frequently talking amongst themselves. Lawmakers repeatedly admonished members of the crowd to take their conversations elsewhere.
At one point, Rep. Blake Moore (R-Utah) fell asleep and had to be awoken by a colleague when it was his turn to vote on an amendment. As the sun came up, lawmakers joked about potentially setting a record for the longest-ever hearing.