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New Deadline for Trump’s Tax Agenda Set for July 4
Treasury Secretary Scott Bessent announced on Monday that lawmakers have a new target date of July 4 to enact President Trump’s comprehensive tax plan.
Bessent discussed the timeline during a meeting on Capitol Hill with National Economic Council Director Kevin Hassett, Speaker of the House Mike Johnson (R-La.), Senate Majority Leader John Thune (R-S.D.), and leading tax committee members.
As Congress reconvenes in Washington, efforts intensify to pass the tax package, which encompasses key elements of Trump’s broader policy objectives. The aim among Republicans is to advance the legislation with only party-line support, although substantial differences still need to be resolved.
During the meeting, Bessent emphasized the current cohesiveness among various factions of the party while unveiling the new deadline. “The House is moving things along quickly, and the Senate is in lockstep. We think there is substantial agreement,” he stated. “We hope to finalize this tax component by the Fourth of July.”
The proposed package is likely to include a blend of Republican priorities, such as making the tax reductions from 2017 permanent and eliminating taxes related to tips, overtime, and Social Security. Additionally, lawmakers anticipate including immigration reforms, increased Pentagon funding, raising the debt ceiling, and implementing significant spending reductions.
Initially, Congress aimed to finalize the legislation by Memorial Day, with Johnson expressing intentions to push the bill through the House by that deadline. However, many Senate Republicans regard this as an overly ambitious target.
The announcement of the July 4 deadline coincides with the upcoming release of an updated Treasury Department projection regarding when the U.S. will reach its debt payment limit, often referred to as the “X date.”
This deadline is pivotal, as it is likely to coincide with necessary discussions about raising the debt ceiling by at least $4 trillion. The timing of this date could significantly impact the GOP’s legislative strategy if it occurs earlier than expected.
“No new X date has been established yet,” Bessent remarked, citing continued strong tax collections in April. He added that revenue generation is improving this year. “We might have clearer insights by the end of this week or next week.”
Despite uncertainties regarding the X date, Bessent assured that the U.S. would address the debt ceiling, regardless of the timing. “The U.S. will never miss the X date,” he affirmed.
Source
thehill.com