New York Times: House Passes Budget Bill Teeing Up Enormous Tax and Spending Cuts

? BREAKING: The House Republican spending bill has passed.

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— Benny Johnson (@bennyjohnson) February 26, 2025

BREAKING: Every Democrat in the House of Representatives just voted against No tax on tips and No tax on overtime. pic.twitter.com/zaMXmefHbQ

— Greg Price (@greg_price11) February 26, 2025

I thought it was a slow news day yesterday.

There wasn’t much news until last night when the House passed its budget resolution.

New York Times:

“The House on Tuesday narrowly passed a Republican budget resolution that calls for $4.5 trillion in tax cuts and a $2 trillion reduction in federal spending over a decade, clearing the way for major elements of President Trump’s domestic agenda.

The nearly party-line vote of 217 to 215 teed up a bitter fight within the G.O.P. over which federal programs to slash to partially finance a huge tax cut that would provide its biggest benefits to rich Americans.

It came after a head-spinning hour in which Republican leaders tried to put down a revolt among conservatives who wanted deeper spending cuts, failed to do so, canceled the budget vote and then reversed course minutes later and summoned lawmakers to call the roll. …”

This is the first step in passing the big reconciliation bill.

CNN:

“Speaker Mike Johnson pulled off a stunning turnaround Tuesday night to rescue a critical vote to advance President Donald Trump’s agenda that had seemed doomed just moments earlier.

Surprising even some of his critics, Johnson and his leadership team capped hours of drama in the Capitol by successfully flipping multiple Republican holdouts to pass a budget blueprint that will mark the first step toward moving Trump’s ambitious agenda forward. With help from last-minute phone calls from Trump, GOP leaders spent all of Tuesday in a furious pressure campaign to win backing for their plan.

“The world didn’t end today. But I do see the edge,” Rep. Pat Fallon, a Texas Republican, said of the whiplash in the House. …”

Major tax cuts are coming.

Mike Johnson and John Thune are going to wrap Trump’s domestic agenda – tax cuts, energy, defense and immigration – into the “one big, beautiful bill” and pass it through reconciliation.

Note: Last year, I predicted that budget reconciliation would be used to renew the Trump tax cuts and to fund border security like Biden used it to pass the American Rescue Plan. Ignore the activists who are whining and spreading disinformation about the pace of deportations. Mass deportations aren’t possible yet because there are only like 6,000 ICE agents. This will be fixed in the reconciliation bill.