Donald Trump presented his budget proposal for 2026 on Friday. Republicans in the House of Representatives are also preparing a draft on taxes, which is expected to be made public in the coming days.
Last week, Trump suggested on social media that the USA should not impose income tax on incomes below 200,000 dollars. Instead, one should rely on revenue from the extensive customs duties, reports The New York Times. This was news to Republicans who were already busy drafting tax relief into legislative proposals in other ways.
We haven't had that discussion at all – it has never been mentioned, says Republican Lloyd Smucker, about Trump's proposal.
Even if the latest proposal is not included, members of Congress are attempting to incorporate several of Trump's different tax proposals into legislation, for example by not taxing tips, overtime pay or social insurance benefits.
My problem with what is being proposed now is that there is no other guiding principle than that "this is what President Trump promised during the election campaign", says Republican Ron Johnson, to The New York Times.
According to The Washington Post, Republicans have also told officials within the Trump administration that it may be difficult to get Congress on board with the President's proposal on extensive cuts in the state apparatus.
