President Trump on Wednesday urged Congress to make the tax cuts enacted during his first term permanent as lawmakers debate a budget plan.
The House late Tuesday adopted a resolution that calls for sweeping tax cuts with a net cost of $4.5 trillion, a ceiling that can be adjusted depending on how much spending lawmakers cut.
Senate Republicans have argued the $4.5 trillion ceiling is not high enough to allow for a permanent extension of the 2017 tax cuts set to expire at the end of the year and accommodate the president’s other tax proposals like exempting tips, overtime pay and Social Security benefits.
The Congressional Budget Office has estimated that a permanent extension of the 2017 tax cuts would cost $4.6 trillion over 10 years.
“I hope the House and Senate are able to agree on making the Tax Cuts PERMANENT!” Mr. Trump posted Wednesday on social media.
The president appears to be calling for changes to the House budget plan, which he had endorsed over a Senate one that would have focused first on funding for national security priorities and saved the tax cuts for a second legislative effort.
Senate Republicans have already said they want to tweak the House budget to allow for a permanent extension of the tax cuts, with several making the case to the president directly.
Mr. Trump and Treasury Secretary Scott Bessent are set to meet at the White House on Wednesday afternoon to discuss their tax plans with top Republicans, including House Speaker Mike Johnson of Louisiana, Senate Majority Leader John Thune of South Dakota, Senate Finance Chairman Mike Crapo of Idaho and House Ways and Means Chairman Jason Smith of Missouri.
Mr. Smith, in a Fox Business interview on Tuesday, said the top congressional tax writers will meet weekly at the White House until the tax legislation is passed.
“It’s making sure that we’re working hand in glove with the administration, and the House and Senate are working together,” he said.
GOP Senate Finance Committee members, led by Steve Daines of Montana and including Mr. Thune and Mr. Crapo, sent a letter to the president this month saying they would not support legislation that only temporarily extends the tax cuts.
“A temporary extension of these pro-growth and pro-family policies is a missed opportunity,” they wrote. “Businesses need certainty while investing in their companies, and taxpayers should not fear tax hikes due to congressional inaction.”
Mr. Crapo has for months been calling for using a current policy baseline for the tax legislation, which would make the effective cost of extending the 2017 tax cuts zero because they’re already in law. Republicans then would have to consider only the cost of new tax proposals they want to add to existing law.
Mr. Smith unsuccessfully pushed for the current policy baseline to be part of the House budget, but still likes that approach.
“We absolutely, with using the current policy baseline, can make the tax cuts permanent,” he said.
• Lindsey McPherson can be reached at lmcpherson@washingtontimes.com.