Quarreling Republicans Float Plan to Cut Taxes, Raise Debt Limit

As the 2024 presidential election heats up, Republicans are locked in a fierce debate over their budget proposal, which includes significant tax cuts and a substantial increase in the debt ceiling. The House Budget Committee released a resolution on Wednesday, outlining a plan that would provide up to $4.5 trillion in tax cuts, primarily for businesses, and cut mandatory spending by $2 trillion over the next decade. The proposal also includes a $4 trillion increase in the debt ceiling, which would allow the U.S. to continue financing its bills.

The budget resolution comes as congressional leaders have been pursuing a massive legislative package under the budget reconciliation process, which would enact President Trump's agenda, including resources to bolster border security, extend some of the 2017 tax cuts, incentivize domestic manufacturing, and invest in American energy. However, the process has faced delays amid intraparty disagreement on how to proceed, and the stalled progress in the lower chamber has prompted the Senate to move ahead with its own proposal in recent days.

House Republicans have been struggling to agree on the details of the budget plan, with some lawmakers pushing for deeper spending cuts and others advocating for more tax cuts. The House Budget Committee is expected to hold votes on the plan on Thursday, but tensions remain within the Republican conference about the scope of the proposed tax and spending cuts. Some Republicans want more in tax cuts than what is in the blueprint, while others want steeper spending cuts.

The Senate Budget Committee, meanwhile, has been working on a more tailored $340 billion blueprint focused on President Trump's deportation agenda and bolstered U.S. defense spending. The Senate proposal would allow $175 billion to be spent on border security, $150 billion for defense, and $20 billion for the Coast Guard. Their budget would not include an extension of tax cuts, leaving that to be dealt with in a second bill later this year.

As the House and Senate continue to debate their respective budget proposals, it remains unclear which side will win out in the end. The dueling approaches between the two chambers are becoming something of a race to see which chamber will make the most progress toward the GOP's overall goals. With small majorities in both the House and Senate, lawmakers will need to work together to pass any legislation, and the outcome of these negotiations will have significant implications for the U.S. economy and the 2024 presidential election.