The Daily Punch GOP tax rift grows as clock ticks
Jun 5, 2025
Tensions rise as Senate Republicans clash with the White House over tax reform in a critical reconciliation package. The complexities of balancing competing interests become increasingly apparent as deadlines loom. Meanwhile, the Michigan Senate race heats up, with crypto money backing Mike Rogers significantly. Additionally, innovation initiatives spark new collaborations between tech giants and the military, illustrating how political dynamics shift within the GOP.
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Senate-White House Tax Rift
- Senate Republicans and the White House sharply disagree on major changes to the House-passed reconciliation tax package.
- Senate Republicans now pursue significant alterations despite initial claims to minimize changes.
Senate Republicans Want Big Tax Changes
- Senate Republicans seek to make certain business tax breaks permanent, diverging from the House's five-year sunset plan.
- They also want new limits that could affect Trump’s tax priorities, including limits on SALT and savings accounts.
SALT Deduction Cap Under Strain
- The SALT deduction cap at $40,000 is fiercely contested, with Senate Republicans leaning toward weakening it despite House efforts.
- This threatens support from members representing high-tax states and complicates bill passage.