Top Republicans are circulating various ideas to cover the costs of a large tax cut and immigration crackdown bill. Options include a 10 percent tariff on all imports, estimated to bring in $1.9 trillion, and implementing new work requirements for Medicaid recipients to save $100 billion.
They have even suggested raising taxes on individuals who have access to a free gym at work, which could generate $20 billion. These ideas are listed in a 50-page document from the House Budget Committee.
Republican leaders are facing the challenge of finding policies that can pass Congress and be signed by President Trump. With slim majorities in both chambers, they need to balance the interests of spending hard-liners and more centrist members.
House Republicans are considering a range of options to offset the costs of their proposals. These options include cutting health care subsidy programs, capping Medicaid funding, and ending tax exemptions for employer-provided meals and lodging.
Their goal is to pass a comprehensive bill using reconciliation to avoid a filibuster in the Senate, even though some Republicans are hesitant to add to the national debt.
Options under consideration include work requirements for Medicaid recipients and rolling back clean energy efforts. Undoing parts of the Inflation Reduction Act poses political challenges but could yield significant savings.
House Republicans are exploring proposals like ending the home mortgage deduction to save money. They are also considering new taxes on office gyms and scholarships, which could increase federal revenue.
Taxing imports and considering a border adjustment plan are among the revenue-raising options being looked at. Ending the tax deduction for interest on home mortgages is another proposal, although it faces opposition from various groups.
Republican lawmakers are also exploring further tax cuts, such as exempting tips and overtime pay from income tax. They are considering various approaches to implement these changes to balance the costs and savings involved.