House committee expected to unveil details of tax-cut proposal this week

Published 12/05/2025, 12:36
© Reuters.

Investing.com - The House Ways and Means Committee is due to debate and potentially advance a preliminary and incomplete draft of their tax plan on Tuesday, with Republicans potentially facing having to break with years off party policy by following President Donald Trump’s call to raise taxes on the wealthy.

Charged with overseeing tax policies, the committee released last week a partial text of its part of Trump’s proposed tax agenda. However, some of the more contentious issues were left out ahead of the meeting this week.

Among the committee’s proposals would be an increase in the child tax credit and new requirements for recipients to have secured a Social Security nuber. Some taxes for mutinational companies and unincorporated businesses would also be brought down. But the text does not include comments on issues like a deduction for state and local taxes or plans for the Medicaid healthcare program.

Republicans in the U.S. Congress have been at odds over how to roll out Trump’s so-called "big, beautiful bill" that would fold in a multitrillion-dollar tax cut yet leave the fate of Medicaid and the nation’s debt ceiling in doubt.

Trump, meanwhile, has also indicated a willingness to increase taxes on the wealthiest Americans, marking a possible departure from longstanding Republican policy stances. According to Reuters, Trump has privately urged Republican House Speaker Mike Johnson to increase taxes of the rich, although he has taken a more nuanced approach to the matter publicly.

It is also not knonw if the legislation will follow through on Trump’s vows to end taxes on overtime pay, Social Security retirement benefits and tips.

According to preliminary figures from the Joint Committee on Taxation, a nonpartisan tax monitor, this early version of House Republicans’ tax plan would cost almost $5 trillion -- a cost exceeding a budget resolution adopted by Republicans earlier in 2025. More details on the plan are likely to be released on Monday, Politico has reported.

(Reuters contributed reporting.)

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