Trump to lunch with Senate Republicans as GOP lawmakers worry about Trump's tax policy freelancing


President Trump heads to Capitol Hill on Tuesday for a luncheon with Senate Republicans, and the main item on the menu will be tax cuts. House Republicans plan to unveil an ambitious tax plan in the next week or so, but Republican lawmakers are struggling to square the more than $5 trillion in tax cuts Trump has proposed with his pledged limitations — including his promise Monday that there will be not no changes to 401(k)s — and deficit limits. In order to pass the bill with just 50 Senate votes, Republicans can't exceed the $1.5 trillion deficit number they set in their Senate budget resolution, and senators worry Trump will continue to tie their hands with his statements.
Trump has also pledged to ax the estate tax, cut the corporate tax rate to 20 percent or lower, and focus the tax cuts on the middle class, and he opposes a fourth tax bracket for people who earn more than $1 million a year. To make the math work, Republicans will need to cut popular tax breaks, gradually lower taxes, or use accounting tricks, and limiting annual pre-tax 401(k) contributions to $2,400 from $18,000 would have allowed Republicans to borrow from future revenue. Politically, Trump and Republicans really want to sell this as a cut for the middle class, though the proposed cut in corporate taxes is projected to cost up to $2 trillion by itself.
"You are trying to stuff a $4 trillion or $5 trillion tax cut in a $1.5 trillion box," Steve Moore, one of President Trump's top 2016 economic advisers, tells The Washington Post. Still, he added optimistically, "there is a lot of desperation on the part of Republicans, and desperation is what will get us over the hump ultimately."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Taz Sarhane's mallard with pine nut sauce and boulangère potatoes
The Week Recommends Bold duck, crispy potatoes and silky pine-nut sauce come together in this earthy yet refined dish
-
Cambodian pork and rice recipe
The Week Recommends This street-food dish is traditionally eaten for breakfast, but makes a delicious dinner, too
-
Xiao Zintong: China's controversial snooker champion
In the Spotlight The 28-year-old was implicated in the sport's biggest match-fixing scandal before coming back from suspension to take the world title
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine