Trump tax bill fails in House subcommittee due to GOP cost disagreements

Trump tax bill fails in House subcommittee due to GOP cost disagreements

The House Energy and Commerce Committee's markup of the Republican-only tax bill, aimed at extending President Donald Trump's tax breaks and funding his spending agenda, has stalled due to internal cost disagreements among GOP lawmakers. The committee advanced the communications and technology portion of the bill, which includes spectrum sales, but failed to agree on the overall cost and offset measures [1].

The legislation seeks to reauthorize spectrum sales to internet companies, generating billions of dollars to fund Trump's tax cuts and spending bill. The Federal Communications Commission (FCC) would receive powers to auction spectrum for the next decade, with the plan potentially raising $88 billion [1]. However, the House committee's overall reconciliation plan aims to reduce deficits by over $880 billion through fiscal 2034, and Democrats argue that the proposed measures do not sufficiently address the public good [1].

The bill also includes provisions to allocate $500 million to the Commerce Department for AI spending and a 10-year ban on states enforcing new AI regulations. Republicans defend these measures as necessary for modernizing federal IT systems and promoting innovation, while Democrats criticize them for enriching major tech executives and putting Americans at risk [1].

Meanwhile, President Trump has pressured Republicans to unite on the budget bill, stating that the legislation will cut taxes for all Americans and protect Medicaid for those in need. However, the House Budget Committee is still gathering to advance the bill, with the outcome uncertain due to ongoing disputes over Medicaid cuts and the state and local tax deduction [2].

The failure of the House subcommittee to agree on the cost and offset measures of the Trump tax bill indicates the ongoing challenges in passing the legislation without Democratic support. As Republicans continue to debate the bill's provisions, the fate of the tax cuts and spending agenda remains uncertain.

References:
[1] https://news.bgov.com/bloomberg-government-news/house-gop-to-debate-spectrum-sales-ai-commerce-spending-bill
[2] https://seekingalpha.com/news/4449652-trump-pressures-gop-to-unite-on-budget-bill-ahead-of-key-vote