Bloomberg Talks House Ways and Means Committee Chairman (R) Jason Smith Talks SALT
May 6, 2025
The chairman of the House Ways and Means Committee discusses the challenges faced by lawmakers from high-tax states regarding the state and local tax deduction cap. He warns of an unhappy compromise on the issue. The conversation also dives into balancing the budget with ambitious tax relief strategies amidst rising inflation. Key political maneuvers needed to appease various congressional factions are highlighted, alongside potential impacts on Medicaid and tax cuts for different groups.
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Comprehensive Tax and Budget Plan
- The upcoming budget will be comprehensive, including border policy, defense, spending cuts, and tax cuts.
- It aims to make permanent the 2017 tax provisions and introduce new tax reliefs popularized by Trump.
Risk of 22% Tax Increase
- Without passing the tax provisions, Americans could face an average 22% tax increase.
- This would worsen financial struggles amid 21% inflation over four years.
Spend Cuts Without Benefit Cuts
- To find spending cuts without harming beneficiaries, explore work requirements and stopping benefits to illegal immigrants.
- Eliminating wasteful policies like those in the Green New Deal tax provisions can also fund tax relief.