Speaker Mike Johnson (R-LA) told House Republicans that he is pursuing $1.5 trillion in spending cuts as part of the reconciliation bill, resulting in a smaller tax cuts package of $4 trillion. This comes as Johnson held a call with President Trump on Wednesday about the reconciliation bill where Trump pressed the Speaker to fund the reconciliation bill by raising the top tax rate for the wealthiest Americans and by treating carried interest as regular income.
Specifically, the White House wants Congress to allow the marginal rate on individuals making $2.5 million or more ($5 million or more for married couples) to revert to the pre-2017 rate of 39.6%. Trump is reportedly determined to make the wealthiest Americans pay more in taxes to protect his Administration and the GOP from accusations that the MAGA movement is only interested in protecting the rich.
The President’s request comes as three remaining House committees on Thursday announced plans to hold markups of their portions of the reconciliation bill next week. The House Ways and Means Committee is aiming to open debate on its portion of the reconciliation bill next Tuesday, May 13th at 2pm, but staff has cautioned that the timing could change. The House Energy and Commerce Committee will also begin its markup on May 13th at 2pm with staff saying it could run more than 24 hours. Finally, the House Agriculture Committee announced it will convene for its markup on May 13th after final votes for the day and break around midnight.