House Ways and Means Committee Chair Says Tariffs Won't Be in Tax Bill
House Ways and Means Committee Chairman Jason Smith, R-Mo., knocked down speculation that tariffs could be part of a tax-cut package in order to offset the costs of extending or expanding individual and business tax cuts passed eight years ago (see 2411120026).
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That package will move through a process called reconciliation, which would allow it to pass both chambers without any Democratic votes. (Typical bills have to garner 60 votes in the Senate, making bipartisan agreement a necessity.) Smith will lead the writing of the tax bill, which is necessary because many of the Trump tax cuts expired within the 10-year budget horizon, to make the cost more manageable.
During a Capitol hallway gaggle with reporters Jan. 9, Smith told International Trade Today that while tariffs won't be a formal pay-for in the new bill's 10-year horizon, they will be considered by lawmakers as they think about the nation's debt. "There's no question that the president campaigned on tariffs, and that will bring in hundreds [of billions], to maybe trillions of dollars of revenue," he said. "But tariffs will not be within the reconciliation bill."