The House Ways and Means Committee approved Republicans’ sweeping tax package Wednesday, after a marathon hearing in which they shot down a string of attempts by Democrats to rewrite the plan.
Approval came on a party-line 26-19 vote, sending the bill to the chamber’s Budget Committee. Lawmakers will combine it with spending-cut legislation for floor action.
Republican leaders are nearing a deal with holdouts upset over the bill’s limit hike on state and local tax deductions. Some Republicans from high-tax states find the increase inadequate.
The aim is to pass the bill in the entire chamber by Memorial Day, followed by Senate action. The tax legislation will be rolled into a megabill carrying President Donald Trump’s policy agenda.
The tax hearing, often contentious, saw battles over winners and losers. Democrats criticized it as favoring the wealthy, while Republicans highlighted benefits like the Child Tax Credit expansion.
Democrats proposed amendments to retain green energy incentives and health care coverage credits. They also aimed to block tax cuts for top earners and Trump’s tariff policies.
The hearing began packed but gradually thinned as it extended into the night. Lawmakers joked about setting a record for the longest hearing.
The legislation prevents tax cuts from expiring this year and includes provisions demanded by Trump and GOP lawmakers.
Projected to cost $3.8 trillion, the package fits within Republicans’ budget. Average earners will see double-digit percentage tax reductions in 2027.
However, the plan benefits well-off taxpayers more in dollar terms. Those earning over $500,000 would receive a $170 billion tax cut in 2027.
