Republicans brace for Trump's tax-cut demands
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President Trump addresses a joint session of Congress, as Vice President Vance and House Speaker Mike Johnson listen, on March 4, 2025. Photo: Jabin Botsford/The Washington Post via Getty Images
President Trump is signaling that tax cuts will be the centerpiece of his State of the Union address Tuesday night — and the cornerstone of his legislative agenda for the rest of the year.
Why it matters: In theory, House Republicans are enthusiastic about another round of tax cuts in a potential second reconciliation package.
- In practice, many of them want to see the specifics of Trump's tax-cut proposals before fully endorsing them.
- And looming over any discussion of tax cuts is Trump's commitment to tariffs.
- Trump loves tax cuts and tariffs equally. Congressional Republicans, meanwhile, have a clear favorite child. (Hint: It's not tariffs.)
What they're saying: "We always want to do things on tax cuts. We're Republicans," House Speaker Mike Johnson told Axios on Tuesday. "We've done a lot already, but if there's more to do, we'll find the path to get it done."
- Earlier in the day, Johnson was less enthusiastic about his party's ability to codify Trump's tariffs into law after the Supreme Court ruled last week that he lacked the authority to impose them as he had.
- "The president, you know, of course, was frustrated about the court's decision, but we're sorting out the fallout from that — what it means for us," Johnson said.
Zoom out: By focusing on tax cuts, Trump is trying to combine two slightly contradictory messages into a single speech: The economy has never been in better shape, he's expected to say.
- But more relief is on the way.
- Poll after poll gives Trump poor marks for his handling of the economy, a subject on which he held a clear advantage heading into the 2024 election. A recent CNN survey put Trump's overall approval rating at a mere 36%, far lower than what it was during his speech to Congress a year ago.
- In some ways, Trump faces the same problem that bedeviled his predecessor: voter frustration over rising prices.
- While inflation has slowed since the summer of 2022, prices remain elevated, and consumers remain frustrated, worrying some Republicans who want a greater focus on affordability.
Zoom in: Ahead of the speech, Republicans were adopting a wait-and-see approach to Trump's proposals. It will be interesting to see how much enthusiasm the president can generate.
- "I think tax cuts are good for the economy, put more money in people's pockets," said Rep. Carlos Giménez (R-Fla.). "I'd like to hear what he's got to say and then, you know, we'll see what happens after that."
- "I'm supportive of lowering income taxes if you're going to have tariffs alongside them," Rep. Chip Roy (R-Texas) said. "We need to see how the math works out."
The bottom line: GOP leaders want Trump to focus on his wins and remind voters of his first-year accomplishments.
- "I don't know if he's going to talk about more [tax cuts]. I think he's going to celebrate the ones we've done," said House Majority Whip Tom Emmer (R-Minn.).
