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Republicans forge their tax bill in Trump’s image, with ‘MAGA accounts’ and more

WASHINGTON (AP) 鈥 Days before Republicans their sweeping tax cut plan, the chairman of the powerful Ways and Means Committee had one last person to consult. He went to the White House, where he and President went over the legislation 鈥渓ine by line.鈥

鈥淗e was very happy with what we鈥檙e delivering,鈥 said Rep. Jason Smith, a Republican from Missouri.

Trump had every reason to be pleased. His imprint is all over on the bill making its way through the House, starting with its title 鈥 the 鈥 .鈥

The legislation many of Trump’s campaign promises, temporarily ending taxes on overtime and tips for many workers, creating a new $10,000 tax break on auto loan interest for American-made cars, and even creating a new tax-free 鈥淢AGA account鈥 鈥 a nod to his 鈥滿ake America Great Again” movement, but in this case, it means 鈥淢oney Accounts for Growth and Advancement.鈥 This would contribute $1,000 to children born in his second term.

The Trump-inspired contours of the legislative package, months if not years in the making, reflect not only the president’s considerable influence over the Republican Party, but also the hard political realities in the House, where Republicans have only the and often find it difficult to find consensus without Trump’s involvement.

Speaker Mike Johnson, R-La., his job to Trump and has kept in constant contact with him during the negotiations, including during his overseas trip this week.

鈥淗e鈥檚 excited about our forward progress,鈥 Johnson said. 鈥淵ou know, I keep him apprised of the developments, and he鈥檚 had a busy time over there in the Middle East, and it鈥檚 been good 鈥 he鈥檚 in good spirits and we鈥檙e in good spirits.鈥

The Republican bill runs a and includes more than $5 trillion in tax cuts, costs that are partially offset by spending cuts elsewhere and other changes in the tax code. The legislation would make permanent the tax cuts from Trump’s while reducing funding for programs involving food assistance, college financing and environmental protection.

As talks over the bill have progressed, divisions have emerged among Republicans, particularly between fiscal hawks most concerned about federal deficits and others more focused on the impact of cuts back home.

That’s where Trump usually comes in, playing the 鈥渃loser鈥 who turns no votes to yes.

鈥淧resident Trump has gone out of his way to ask us: 鈥楢re there any members you want me to call? Anybody that you want me to talk to?鈥 And he calls them right then,” said House Majority Leader Steve Scalise, R-La. “He鈥檚 been incredibly hands-on and incredibly helpful at getting the bill to where it is.鈥

Trump’s involvement seems certain to grow as Johnson labors to get the tax package through the House by a self-imposed Memorial Day deadline.

Conservatives slowed the process Friday, refusing to advance the tax package out of the House Budget Committee until it includes faster implementation of Medicaid changes and a more wholesale repeal of . They vowed to hold firm until their demands are met.

Trump took notice, applying pressure even before the gavel went down on the failed committee vote.

鈥淲e don鈥檛 need 鈥楪RANDSTANDERS鈥 in the Republican Party,” Trump wrote on social media. “STOP TALKING, AND GET IT DONE!鈥

Negotiations were expected to stretch through the weekend, with the Budget Committee reconvening late Sunday night in hopes of a breakthrough.

Rep. Mike Rogers, R-Ala., chairman of the House Armed Services Committee, predicted the tax package will ultimately get over the finish line once Trump 鈥 just returning from a tour of the Middle East 鈥 starts making calls to skeptical lawmakers.

鈥淵ou may have noticed he likes talking on the telephone,鈥 Rogers said.

Added Rep. Tim Burchett of Tennessee, 鈥淚 think the only way we鈥檙e going to get on track with it is with Trump.鈥

The close coordination with Republican leaders stands in stark contrast to Trump’s first term, when the party first enacted a slew of personal and corporate tax breaks. Republicans quickly cobbled that tax package together in late 2017 after a at fulfilling their central campaign promise — repealing and replacing the Affordable Care Act, often referred to as Obamacare.

This time, White House aides have been in regular contact with GOP lawmakers as the tax bill progresses through drafts and markups, highlighting programs they aim to overhaul and provisions they鈥檇 like to add or cut.

The president 鈥渋s much more engaged in directing what happens than the first time because he and the leadership of Congress in 2017 were not seeing eye-to-eye,” Scalise said. “He didn鈥檛 necessarily want health care to be the first thing that was done, and yet it was. This time around we talked a lot before he was sworn in to make sure we were all on the same page.鈥

Trump first began to set the course of the GOP’s current legislative strategy back in January, when he posted to social media that Republicans should pass 鈥渙ne powerful bill鈥 that would tackle all of the party鈥檚 priorities instead of splitting the agenda into two packages.

Senate Republicans argued for a different approach. They urged quick passage of a bill to provide billions for the Pentagon and Trump’s immigration clampdown, saying a second tax package could wait until later.

for a time, giving Republicans on Capitol Hill mixed signals over the best approach. But his original preference for one bill won out in the end, in part because House Republicans insisted their chamber could not do it any other way.

Democrats uniformly oppose the package but have little power to stop it from becoming law if Republicans remain unified. As they continue to grapple with the party’s losses in last year’s election, Democrats have worked to mobilize public opposition to the bill, decrying it as a giveaway to the rich paid for with cuts to healthcare and other social services.

Rep. Pramila Jayapal, D-Wash., called it 鈥渙ne big, beautiful betrayal.鈥

Republicans, meanwhile, are eager to press ahead and get the tax package to the Senate, with hopes of getting it on Trump’s desk by the Fourth of July.

Burchett said that while 鈥渆verybody rises up in righteous indignation鈥 over the details, Republicans will start 鈥渃oming to the table鈥 once Trump is fully engaged.

鈥淚t鈥檚 like an NBA basketball game right now,” Burchett said. “Don鈥檛 watch the game. Just wait till the last two minutes and then turn on the TV.鈥

___

Associated Press writer Kevin Freking contributed.

Copyright © 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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