Business
Tax Cuts or the Border? Republicans Wrestle Over Trump’s Priorities.
Republicans are preparing to cut taxes, slash spending and slow immigration in a broad agenda that will require unifying an unruly party behind dozens of complicated policy choices.
For now, though, they are struggling with a more prosaic decision: whether to cram their policy goals into one bill or split them into two.
It is a seemingly technical question that reveals a fundamental divide among Republicans about whether to prioritize a wide-ranging crackdown on immigration or cutting taxes, previewing what could be months of intramural policy debate.
Some Republicans have argued that they should pass two bills in order to quickly push through legislation focused on immigration at the southern border, a key campaign promise for Mr. Trump and his party’s candidates. But Republicans devoted to lowering taxes have pressed for one mammoth bill to ensure that tax cuts are not left on the cutting-room floor.
President-elect Donald J. Trump met with Republican senators in Washington on Wednesday, as those lawmakers sought clarity on his preferred strategy. He has waffled between the two ideas, prolonging the dispute.
“Whether it’s one bill or two bills, it’s going to get done,” Mr. Trump told reporters after the meeting.
Republicans are planning to ram the partisan fiscal package through the Senate over the opposition of Democrats using a process called reconciliation, which allows them to steer clear of a filibuster and pass bills with a simple majority vote. But for much of this year, Republicans will be working with a one-seat majority in the House and a three-seat majority in the Senate, meaning they will need near unanimity to pass major legislation.
That has left some worried that it will be hard enough passing one bill, much less two.
“There’s serious risk in having multiple bills that have to pass to get your agenda through,” Representative Steve Scalise of Louisiana, the majority leader, said. “When you know you’ve got a lot of people that want this first package, if you only put certain things in the first package, they can vote no on the second and you lose the whole second package. That would be devastating.”
Adding to the urgency of achieving their policy goals, Republicans are facing a political disaster should they fail to deliver. Many of the tax cuts they put into place in 2017, the last time Mr. Trump was president, expire at the end of the year. That means that taxes on most Americans could go up if Congress does not pass a tax bill this year.
Passing tax cuts can take time, though. While much of the Republican tax agenda involves continuing measures the party passed in 2017, Mr. Trump and other Republicans have floated additional ideas, including no taxes on tips and new incentives for corporations to manufacture in the United States. Ideas like that could take months to formulate into workable policy.
Then there is the gigantic cost. The nonpartisan Congressional Budget Office estimates that simply extending the 2017 tax cuts would cost more than $4 trillion over a decade — a price tag that would grow if other tax cuts, like Mr. Trump’s proposal to not tax overtime pay, are included.
Further complicating support for the legislation is that Republicans plan to raise the debt limit through reconciliation, another sensitive issue for fiscal hawks.
Members of the ultraconservative House Freedom Caucus have said they would not support any legislation unless the costs it introduces are offset by spending cuts. While most Republicans support reining in federal spending, agreeing on which federal programs to slash always proves harder than expected. In an attempted workaround, Republicans have instead begun to explore ways to change Washington’s budget rules so the tax cuts are shown to cost less.
The complexity of pulling together a tax bill that can secure the necessary votes has some Republicans hoping to hold off until later in the year and first charge ahead with a smaller bill focused on immigration, energy and military issues. Republicans have not yet publicly sketched out what that bill would look like.
Proponents of that strategy argue it would deliver Mr. Trump an early political victory on immigration and treat a top Republican campaign issue with the urgency it deserves.
“The No. 1 priority is securing our border,” Representative Byron Donalds of Florida told reporters on Tuesday. “In my opinion it’s the top priority, and everything else is a close second.”
Senator Lindsey Graham of South Carolina, the chairman of the Budget Committee who will be overseeing the reconciliation process, has also pressed for a two-bill approach. “If you hold border security hostage to get tax cuts, you’re playing Russian roulette with our national security,” he said.
Republicans have looked to Mr. Trump to intervene and set a clear direction for the party. On Sunday, he wrote on social media that Congress should pass “one powerful Bill,” an apparent victory for lawmakers like Representative Jason Smith of Missouri, the chairman of the House Ways and Means Committee, who had championed that approach. Mr. Trump’s equivocation since then, though, has left Republicans still unsure of which strategy they should pursue.
Mr. Trump’s meeting with top Republican senators on Wednesday will be followed by a discussion with various House Republicans in Florida over the weekend.
In a sign of how politically complicated the tax cut discussion could get, one of the sessions is expected to focus on relaxing the $10,000 limit on the state and local tax deduction, known as SALT.
Republicans included the $10,000 limit in the 2017 tax law as a way to contain the cost of that legislation. But the move angered House Republicans from high-tax states like New York and New Jersey, many of whom voted against the entire 2017 tax bill as a result. Such defections are a luxury that Republican leaders can’t afford this year given their narrow majority.
G.O.P. lawmakers from New York, New Jersey and California could tank a tax bill if they are unsatisfied with how the provision is handled. They are now pushing to lift the cap as part of the party’s tax bill. Eliminating the cap entirely could add roughly $1 trillion to the price tag of the legislation.
Maneuvering ambitious policy agendas through Congress has often been a messy and time-consuming process for presidents. A Republican effort to repeal the Affordable Care Act during Mr. Trump’s first term collapsed after more than six months of discussion.
After quickly passing pandemic relief measures in 2021 under President Biden, much of Democrats’ broader agenda was stymied for almost two years before a second party-line measure passed that was far narrower than many in the party had hoped.
This time around, Republicans will be grappling not only with a historically slim margin in the House, but also a president prone to sudden changes of heart.
“You can argue the merits of both” strategies, said Representative Jodey Arrington, a Texas Republican who leads the House Budget Committee. “He has to tell us what he wants and what he needs.”
Business
China’s Exports and Imports Set Records in April Amid High Energy Costs
China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.
China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.
The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.
Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.
China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.
The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.
China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.
Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.
Overall exports of electronics and machinery were up 20 percent in April from a year earlier.
China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.
With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.
Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.
China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.
China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.
The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.
China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.
“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.
But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”
Business
Disney’s ABC challenges FCC, escalating fight over free speech
Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.
Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.
The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.
The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.
In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.
“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.
The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.
In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.
“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”
ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.
In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.
But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.
Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.
Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.
(Genaro Molina/Los Angeles Times)
Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.
“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”
The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.
ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.
“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”
ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.
The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.
The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.
“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.
On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.
In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.
The company has produced more than 11,000 pages of documents to comply with the request, Disney said.
The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.
Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.
Business
U.S. Targets Iran’s Missile and Drone Program With Sanctions
The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.
The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.
China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.
The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.
“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.
U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.
The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.
Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.
“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.
-
Wisconsin3 minutes agoWisconsin multi-county police chase, 2 people from Illinois arrested
-
West Virginia9 minutes agowvnews.com | WVNews | Trusted West Virginia News, Sports & Local Coverage
-
Wyoming15 minutes ago(LETTERS) Sun Bucks and Wyoming GOP endorsement
-
Crypto21 minutes agoLagarde Blocks Euro Stablecoin Push, Calls $300B Market a Stability Risk for ECB Policy
-
Finance27 minutes agoBofA revises Harley-Davidson stock price after latest announcement
-
Fitness33 minutes agoStrategic Exercise Techniques to Maximize Mood Elevation – The Boca Raton Tribune
-
Movie Reviews45 minutes ago1986 Movie Reviews – Dangerously Close, Fire with Fire, Last Resort, and Short Circuit | The Nerdy
-
World57 minutes agoTop 50 English-language news sites in the world in April: Just three newsbrands grow traffic in past month