For the primary time in 17 years, and simply in time for the “Tremendous Bowl of Tax,” Senate Republicans can have a brand new chief in Sen. John Thune (R-S.D.). Thune received the assist of his colleagues final week after Sen. Mitch McConnell (R-Ky.) stepped down from the occasion’s helm. It’s robust to think about a lawmaker higher ready to hit the bottom working.
Thune has served because the chamber’s No. 2 Republican since 2019 and was among the many “core 4” tax writers who drafted the 2017 Tax Cuts and Jobs Act (TCJA) when Republicans managed each chambers of Congress and the White Home. Thune can have a possibility to instantly draw on his expertise in navigating the trivia of Senate process and getting GOP priorities throughout the end line.
The Structure requires tax policymaking to start within the Home. Nonetheless, beneath one-party authorities management, the Senate’s guidelines will play a necessary position in shaping tax laws subsequent 12 months.
That’s as a result of Republicans are making ready to bypass the chamber’s filibuster guidelines and keep away from having to strike a cope with Democrats by pursuing tax reform by way of the funds reconciliation course of. This plan mirrors how the GOP pursued tax reform in 2017, during which Thune had a front-row seat because the occasion’s quantity three. Thune’s background may make navigating the chamber’s arcane reconciliation guidelines simpler, doubtlessly permitting Congress to ship a tax invoice to President Trump’s desk extra shortly.
Setting the Senate’s schedule early subsequent 12 months may nonetheless show difficult. Thune may even be juggling nomination hearings and votes to employees up a second Trump Administration, and we’ve already seen the President-elect float names to fill cupboard positions who face a sophisticated path towards being confirmed.
Thune and President-elect Donald Trump have had a frosty relationship at occasions, with Trump going so far as calling for a main problem to Thune in 2020. How the following majority chief handles his relationship with the White Home, particularly if Trump makes an attempt to straight affect what’s and isn’t included in a giant tax invoice subsequent 12 months, may considerably pace up or decelerate the tax-writing course of.
Thune’s Priorities
As for his personal priorities, Thune has developed a fame as a measured negotiator who favors pro-growth tax insurance policies. He was the chief architect of the portion of TCJA that modified how pass-through entities are taxed and helps preserving insurance policies like stepped-up foundation at demise, taxing carried curiosity as capital beneficial properties and eliminating the property tax.
It stays unclear how aggressively Senate Republicans would possibly attempt to offset the price of extending or constructing upon their 2017 tax cuts. Thune may discover some income by limiting state and native tax deductions, however broadly talking, he and his Republican colleagues within the Senate appear much less than Home Republicans in offsetting as a lot of the price of extending and increasing on the TCJA.
Thune’s greatest problem may very nicely be a less-than-predictable White Home agenda, the place priorities generally enter and depart the dialog as quick as social media posts on a feed. Time will inform if Thune and his management staff can maintain their footing as a second Trump Administration steers our ship of state in 2025 and past.
Elias Vetter contributed to this text.
