House Republicans Propose $4.5 Trillion Tax Cuts, Clash With Senate Plan

House Republicans are advancing a budget framework that proposes $4.5 trillion in tax cuts over the next decade, alongside at least $1.5 trillion in spending reductions, while aiming to raise the debt limit by $4 trillion. This ambitious proposal, largely shaped by House Speaker Mike Johnson, is intended to extend the expiring provisions of the Tax Cuts and Jobs Act and potentially include additional tax cuts from President Trump's agenda. However, the plan faces challenges, as extending the TCJA alone could exceed $4 trillion, necessitating either significant spending cuts or revenue increases to offset the costs of further tax reductions. The proposal has sparked debate among Republicans, with differences emerging between House and Senate approaches, particularly regarding spending priorities and the execution of Trump's goals. The package must navigate a narrow majority in Congress, where any dissent could derail the plan. Meanwhile, the Mississippi State Senate has also introduced a tax cut plan that aims to gradually reduce the state income tax, contrasting with the House's broader federal approach.