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Reviewing the House Budget Committee Tax Options

by January 23, 2025
January 23, 2025

Adam N. Michel

Last week, a copy of House Budget Committee Republicans’ draft menu of reconciliation options leaked to the press. The document is impressive in its breadth and willingness to seriously consider the tough budgetary trade-offs Republicans have ahead of them. The 51-page document includes potential tax and spending changes across 11 committees.

Many of the options are versions of proposals included in the Cato Tax Plan and our lists of reconciliation-eligible spending cuts for 2025. Despite its length, the list is by no means comprehensive—it leaves out trillions of dollars in tax and spending savings options that should undoubtedly be part of the conversation. It also includes economically destructive proposals like new tariffs and other tariff-like border adjustment taxes.

No list or process is perfect, but the thankless work the Budget Committee is doing will be essential if Republicans want to pass a permanent, pro-growth tax package that takes seriously President Trump’s campaign promises to shrink the size and scope of government.

The table below includes tax items listed in the committee’s leaked document. The proposal titles and estimated budgetary effect are from the original document, which also includes in-depth descriptions. The three new columns include an assessment of the policy (good, bad, needs improvement), notes on the change, and suggested reading for more information about each change. Be sure to expand the chart to see the last 24 lines. 

This blog is intended to provide support, awareness, and feedback on the work that Chairman Jodey Arrington and his Budget Committee Staff are doing. Products like this options list will be key to ensuring the final reconciliation package(s) doesn’t only cut taxes but also shrinks the federal government. 

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