House Freedom Caucus Chair Andy Harris, a Maryland Republican, announced Tuesday that the group will introduce its own tax plan this week, aiming to advance President Donald Trump’s tax priorities. The move complicates House Speaker Mike Johnson’s efforts to unite Republicans around a single legislative approach.
Why It Matters
The House GOP is struggling to align on a broader legislative package that includes border security, energy policy and tax provisions. The Freedom Caucus’ decision to release a separate tax plan adds another layer of division, challenging the leadership-backed proposal from House Ways and Means Chair Jason Smith, a Republican from Missouri.
What To Know
Harris explained that the Freedom Caucus’ tax plan will be their “second step” after addressing border and defense issues. He stressed that it will include deficit reduction measures to reassure financial markets that Republicans are serious about fiscal responsibility. But he said that not all of Trump’s tax ideas will be incorporated.
One key point of contention is how much deficit spending will be allowed in the GOP tax plan. Johnson’s proposal is expected to include a budget reconciliation instruction for the House Ways and Means Committee that limits deficit spending to under $4.7 trillion. This would leave just enough room to extend the 2017 Trump tax cuts, which are set to expire at the end of the year and are estimated to cost approximately $4.6 trillion.
Roberto Schmidt
In contrast, the Freedom Caucus wants a higher range—from $5 trillion to $5.5 trillion—arguing that additional tax priorities, such as eliminating federal income tax on tips and overtime pay, should be included. The group also plans to offset costs through spending cuts, but whether these trims will be acceptable to the broader Republican conference remains uncertain.
Republican leaders are racing to finalize their legislative package, with Johnson’s plan potentially heading to the House Budget Committee as early as Thursday. Pressure is building from the Senate side, as Budget Committee Chair Lindsey Graham of South Carolina prepares to advance a plan that does not include Trump’s tax priorities, instead reserving them for future legislation.
Harris suggested that if GOP leadership cannot quickly resolve internal differences, they should consider passing a narrower bill focusing on border security and defense funding. The Freedom Caucus has already signaled a willingness to break from leadership, having released an alternative border and defense plan earlier this week.
What People Are Saying
Harris, about the bill: “The question is, if they can’t come up to a resolution quickly, then again the House Freedom Caucus feels that they should do what the Senate is doing, pass a much smaller bill, get the president the border funds and some of the defense funds that he needs to secure the nation.”
What Happens Next
Harris said the Freedom Caucus hopes to introduce a full budget blueprint within two weeks. The ongoing divide over tax policy underscores the challenges facing House Republicans as they attempt to push through their legislative agenda.
