Morning Glory: The risks of Republicans delaying tax legislation

Congressional Republicans' chances of winning big are slim. If House Republicans can work together with Senate Republicans and President-elect Trump to agree on a budget resolution, every American employer and employee could win a major victory by the end of February. Extension of Trump tax cuts.

But the current debate within the Republican Party is whether to take the wide gate or the narrow gate. At this point, it appears Congressional Republicans are headed for the wide gate. What a gamble! What a big gamble! What an unnecessary risk!

If Republicans maintain their majority, they could pass not one, but two budget reconciliation bills by early summer. That would give us more time to improve our admittedly complex tax package.

But in addition to the massive raising of borders and military reconstruction, they will now be able to receive more than 70% of the tax package. There are many disagreements among Republicans over the finer points of IRS regulations, which means difficult negotiations lie ahead over some provisions of the tax code. But today's cliché is: “The perfect man should not be the enemy of the good man.” That's what's happening now.

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If for some reason the Republican House majority splits, and the majority is so close that reasons would arrive to destroy it like the ubiquitous Beltway pollen in April, 2 The second settlement will not cross the line and will result in massive tax increases. On January 1, 2026, every business in America will suffer.

Small businesses need certainty above all else. You can't be sure about the effectiveness of your marketing or the optimal combination of products. But they absolutely need certainty about tax law. Retirees are similarly considering withdrawals from their savings. The same goes for large companies looking to make huge investments in manufacturing and data facilities. All of these decisions are on hold until Congress gives representatives certainty on at least the majority of the IRS code.

House Republican fiscal hawks warn Trump tax cuts are at risk of expiring under new Senate-backed plan

It would be a good idea for President-elect Trump to demand “all of the above” in his first settlement. Some members of Congress have heard President Trump's senior adviser Stephen Miller's calls for immediate legislative action on the border, misinterpreting his consistent message that “the border is all that matters.” Mr. Miller is absolutely right to continue to advocate 100% for the need to approve and fully fund the completion of the wall and the expansion of Border Patrol and ICE facilities and authorities.

But Miller said the president-elect doesn't just want border and immigration provisions in his first budget reconciliation package. In addition to border provisions and rebuilding the military, President Trump has promised to extend and modify his signature tax cuts. He must deliver on his promise to actually deliver the economic revival and productivity gains the country needs to quell inflation, lower interest rates and foster real economic growth.

This country's private sector needs certainty about its tax laws. As soon as possible, as much as possible. Trump is hoping for a second Trump boom, an economy like the one he led before the coronavirus brought the world to a standstill for two years.

That's fine to accept, but Congressional Republicans are starting to balk at demanding of themselves the discipline to do it all right now. This is the biggest bet I've seen since Leader McConnell announced there would be no hearings or vote on a nominee to replace Justice Scalia in the wake of Justice Scalia's sudden death in early 2016. .

Mr. McConnell correctly sensed that the Supreme Court's direction was an important issue and that Americans care deeply about their fundamental trust in the written and amended Constitution. Mr. McConnell made a big bet. After seeing that Trump released his 2016 candidate list, Barack Obama made the wrong decision to nominate Merrick Garland. Trump and McConnell (and the Constitution) won.

But now the Republican majority in Congress is sending signals of cowardice in the face of a huge opportunity. Senators and Representatives must now focus on and execute on winning big. It's not just the border bill. It's not just about military reconstruction. But there's more to the tax cuts and actually more than that.

View of the U.S. Capitol Building on November 4, 2024 in Washington, DC, USA. Anthony Blandisi served one term in the U.S. House of Representatives. (Nicolas Economou/NurPhoto via Getty Images)

This is a moment of rare opportunity for free markets and free people. But Congress must seize this opportunity to introduce big legislation, big bills that change the game. Just like in the 2026 election, fortune favors the bold. Do you want to preserve and expand the Republican majority?Sooner or later, unleash America's entrepreneurs (or, if bad things befall the minority majority in the House, not at all).

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Trump is going to get a nominee. And he can get everything he asks for in the initial budget and settlement. The transition team hopes the president-elect will find time to speak with House Speaker Mike Johnson and Senate Majority Leader Thune to clarify the “must-haves.” Mr. Trump, the developer, will know that the window of opportunity is fleeting. Hopefully, he can convince Republicans to act as if their majority is gone by April. Because it might be.

The ghost of Jim Jeffords should now be haunting both sides of the hill. And if you don't have that reference, you won't understand why it's really urgent right now.

Hugh Hewitt is the host of “The Hugh Hewitt Show,” broadcast weekdays from 6 a.m. to 9 a.m. ET on the Salem Radio Network and simulcast on the Salem News Channel. . Hugh Wakes America up on more than 400 affiliates nationwide and on all streaming platforms where SNC is available. He is a frequent guest on Fox News Channel's News Roundtable, hosted by Bret Baier, weekdays at 6pm ET. A son of Ohio State and a graduate of Harvard University and the University of Michigan Law School, Mr. Hewitt has been a professor of law at Chapman University's Fowler School of Law since 1996, teaching constitutional law. Hewitt launched his eponymous radio show in 1990 from Los Angeles. Hewitt frequently appears on every major national news television network, hosts television programs on PBS and MSNBC, writes for every major American newspaper, has written 12 books, and hosts a Republican program. I served. Candidate debates, most recently the November 2023 Republican presidential debate in Miami and the four Republican presidential debates in the 2015-2016 cycle. Hewitt focuses his radio show and columns on the Constitution, national security, American politics, the Cleveland Browns and the Guardians. Over his 40 years on the air, Hewitt has interviewed tens of thousands of guests, from Democrats Hillary Clinton and John Kerry to Republicans George W. Bush and Donald Trump. This column previews the key stories that drive his radio/television show today.

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