Nickel and Diming

Which is why it’s so surprising that we haven’t yet had tax relief, almost at the halfway mark in 2025. Didn’t the Republicans just win the White House, Senate, and House of Representatives? Tick, tock. What’s taking so long to pass those exciting tax cuts that Trump promised and that most Americans voted for?

Imagine a ten-pound mason jar in your closet worth at least $150, full of dimes, pennies, and nickels. If this jar falls over, you have thousands of coins rolling everywhere. One by one you pick them up. Without this painstaking effort, you can’t take this jar to the bank. This is analogous to the tedious but necessary process of tax policy. Let’s take a quick look at what pennies, dimes, and nickels must be picked up to get you your tax relief.

Making Cents

There are so many pennies to collect, and the bank closes in 15 minutes! The biggest issue for the Republicans is tackling the practical reality of a ticking clock. Looming over their desire for tax relief is their thin majority in the House of Representatives. Midterm elections are in 18 months. Add to this that they are past the 100-day mark — when the initial momentum of the election victory delivers the major priorities — and they are simply running out of time.

What stays and what goes? Speaker Johnson has said that he wants a $4 trillion tax plan. Will this package include Trump’s removal of taxes on tips? Will it include the child tax credit? What expenditures will Republicans cut to pay for the tax bill? As the clock ticks, not every penny can be picked up off the floor, nor can every one of the thousands of ideas be included.