What’s in the U.S. Senate Budget to Extend Trump’s Tax Cuts?
WASHINGTON — Senate Republicans are pushing forward a new budget plan designed to extend President Donald Trump’s 2017 tax cuts — and potentially introduce new cuts — without needing support from Senate Democrats. By using a budget reconciliation process, they aim to sidestep Democratic objections entirely.
The plan includes proposals to eliminate taxes on tips and Social Security retirement benefits, echoing recent ideas promoted by Trump. According to the Senate Republican budget committee, these combined changes could cost around $1.5 trillion over the next decade.
That figure is significantly lower than the House Republican estimate of $4.5 trillion, largely because Senate Republicans argue that making the current, temporary tax cuts permanent wouldn’t increase federal spending — since they’re already active policy. It’s an unprecedented budget justification that’s already raising eyebrows in Washington.
However, nonpartisan analysts and watchdogs like the Committee for a Responsible Federal Budget (CRFB) warn that the Senate plan could add trillions to the national debt, which currently stands at $36.6 trillion. Critics, including Democrats and healthcare advocates, also caution that deep spending cuts tied to the budget could severely impact programs like Medicaid, which supports low-income Americans.
While Republicans maintain that tax cuts drive growth and reduce deficits, a 2024 CRFB analysis found that the 2017 tax law did the opposite — increasing the deficit by an estimated $1.9 trillion.