The House tax-writing committee approved a major component of President Trump's tax reform initiative, but the legislation faces significant hurdles in securing final passage. The bill includes an extension of the 2017 tax cuts, temporary tax exemptions, and a SALT cap proposed increase to $30,000, but a faction of Republicans oppose this change. With a slim congressional majority, the GOP can hardly afford defections, exacerbating stakes in negotiations. Despite potential debt increases estimated at $3.7 trillion, internal party alignment remains the primary obstacle for advancing the legislation.
Republicans spent much of that time fighting off a series of amendments from Democrats, including proposals to eliminate Trump's tariffs and raise the state and local tax deduction (SALT) cap to $80,000.
With Republicans holding a 220-213 House majority, they can only afford three defections to pass party-line legislation.
The biggest hurdle to GOP harmony is the proposed SALT deduction cap, which a group of New York Republicans has rejected as 'insulting.'
Overall, the measure would add an estimated $3.7 trillion to the debt over a 10-year period, according to an estimate from the Joint Committee on Taxation (JCT).
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