GROVER NORQUIST: Ideas For The Next GOP Reconciliation Bill
President Trump’s One Big Beautiful Bill changed the future and delivered historic tax cuts for American households and businesses. Hold on to your hats because there will soon be two more reconciliation bills to reduce…
President Trump’s One Big Beautiful Bill changed the future and delivered historic tax cuts for American households and businesses. Hold on to your hats because there will soon be two more reconciliation bills to reduce and reform spending and reduce taxes on all Americans.
The Big Beautiful Bill was huge. Now families can plan decades into the future when they work, save, and invest. Businesses can hire, increase salaries and wages, and invest in new plants and equipment with certainty in the tax rules governing their decisions.
Life in America can and will get better for workers, families and job creators.
But there is more to come.
Speaker Mike Johnson and Senate Leader John Thune have both said reconciliation will be used by the Republican Congress and President Trump to further bring down overspending and to reduce job-killing taxes. This fall and probably again next spring.
What will those changes be? Here are some of the reforms that President Trump and Republican lawmakers have supported in the recent past and that have broad public support.
ONE: End the taxation of inflation. Today when you sell your home, farm, small business or stocks you pay taxes not just on the increased value you created but also on the inflation that Joe Biden attached to the “price” of your home/farm/investments. The Biden inflation made every dollar worth 20% less.
If you are old enough, you will also be paying capital gains taxes on the inflation given to us by Jimmy Carter.
Inflation is created by the government and then taxed by the government. Killing the inflation tax can be done by a Treasury rule but should be buttressed by being passed as a law in reconciliation.
TWO: Expansion of Health Savings Accounts. The GOP can expand health savings accounts (HSAs) to millions more Americans. HSAs introduce competition into healthcare since the dollars in the accounts are controlled by households. They are incentivized to shop around, putting downward pressure on prices.