WSJ Opinion: Potomac Watch
What's in the House GOP's ‘Big Beautiful’ Tax Bill?
May 13, 2025
In this discussion, Kate Batchelder-Odell, an editorial board member at The Wall Street Journal, and columnist Alicia Finley delve into the House GOP's ambitious tax bill. They examine the controversial proposal to extend 2017 tax cuts and tackle political giveaways, including a significant SALT deduction increase and a $1,000 contribution to 'MAGA accounts' for infants. The conversation raises questions about whether these strategies represent a new GOP consensus and critiques the complexities that might ultimately complicate the tax system.
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Quick takeaways
- House Republicans seek to make the 2017 tax cuts permanent, aiming to prevent a significant $4.5 trillion tax increase over the next decade.
- The proposed Medicaid changes focus on eligibility and work requirements but fail to address fundamental funding disparities affecting vulnerable populations.
Deep dives
Overview of the Reconciliation Bill
House Republicans are advancing a significant reconciliation bill that encompasses major policy initiatives, particularly related to tax reform and Medicaid. Key elements include proposed changes to the tax code, especially concerning the expiration of the 2017 tax cuts, which, if unaddressed, could lead to a substantial tax increase estimated at $4.5 trillion over the next decade. The Ways and Means Committee is pivotal in shaping the tax aspects of this bill, with draft proposals emphasizing both revenue generation and minimizing economic distortions. However, these drafts are still in negotiation, indicating ongoing debates within the party about what should remain or be modified before final approval.
