Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Politics

Trump’s tax overhaul hits GOP turbulence over Biden-era green incentives

by May 2, 2025
May 2, 2025
Trump’s tax overhaul hits GOP turbulence over Biden-era green incentives

The House GOP’s standoff over the former Biden administration’s green energy subsides is colliding with Republicans’ plans for a massive bill advancing President Donald Trump’s agenda.

Thirty-eight House Republicans are writing to Ways & Means Chairman Jason Smith, R-Mo., the chamber’s top tax writer, urging a full repeal of the Inflation Reduction Act (IRA) in the coming budget reconciliation bill.

‘We are deeply concerned that President Trump’s commitment to restoring American energy dominance and ending what he calls the ‘green new scam’ is being undermined by parochial interests and short-sighted political calculations,’ the lawmakers wrote.

They argued the IRA subsidies would cost American taxpayers roughly $1 trillion over the next decade.

‘The IRA contains eight major energy subsidies, each of which burdens taxpayers, inflates energy costs, and threatens the reliability of our power grid. Each of these subsidies props up unreliable energy sources while displacing dependable, proven energy like coal and natural gas,’ the letter said.

The lawmakers then took direct aim at fellow Republicans who are pushing for some of the credits to remain intact.

‘Republicans ran—and won—on a promise to completely dismantle the IRA and end the left’s green welfare agenda. The first chapter of our 2024 platform reaffirms our commitment to ‘terminating the Socialist Green New Deal.’ Despite our previously unified stance, some Members of our conference now feel compelled to defend wind and biofuel credits, advocate for carbon capture and hydrogen subsidies, or protect solar and electric vehicle giveaways,’ the letter said. ‘Keeping even one of these subsidies opens the door to retaining all eight.’

‘How do we retain some of these credits and not operate in hypocrisy? The longstanding Republican position has been to allow the market to determine energy production. If every faction continues to defend their favored subsidies, we risk preserving the entire IRA because no clearly defined principle will dictate what is kept and what is culled.’

Republicans are working on a massive piece of legislation advancing Trump’s agenda on taxes, border security, national defense and energy, while also raising the debt limit.

The budget reconciliation process allows them to do that by lowering the Senate’s threshold for passage from 60 votes to 51, thereby allowing the party controlling Congress and the White House to pass sweeping legislation while sidelining the opposition, in this case Democrats.

Conservative fiscal hawks successfully got House GOP leaders to agree that the trillions of dollars of new spending in the bill – primarily for Trump’s tax policies – must be offset by at least $1.5 trillion in federal funding cuts.

Former President Joe Biden’s IRA subsidies have been a significant flash point in that fight.

In March, 21 House Republicans signed a letter urging their colleagues to preserve the green energy tax credit.

‘Countless American companies are utilizing sector-wide energy tax credits – many of which have enjoyed broad support in Congress – to make major investments in domestic energy production and infrastructure for traditional and renewable energy sources alike,’ they wrote.

That letter pointed out that investments have already been made in American entities with the understanding that those subsidies would have a 10-year window.

‘These timelines have been relied upon when it comes to capital allocation, planning, and project commitments, all of which would be jeopardized by premature credit phase outs or additional restrictive mechanisms such as limiting transferability,’ it said.

They argued that changing that now could lead to rising energy costs for American families.

The anti-IRA Republicans, however, said in their letter that the U.S.’ growing green energy sector was the product of government handouts rather than genuine sustainable growth.

‘Leaving IRA subsidies intact will actively undermine America’s return to energy dominance and national security,’ they said. ‘They are the result of government subsidies that distort the U.S. energy sector, displace reliable coal and natural gas and the domestic jobs they produce, and put the stability and independence of our electric grid in jeopardy.’

Meanwhile, House GOP leaders like House Speaker Mike Johnson, R-La., have made clear they have issues with the wider bill, but share concerns about ending measures in use under the current administration and risking political blowback in GOP districts that have seen investments by entities that have benefited from the subsidies.

Fox News Digital reached out to the Ways & Means Committee for comment but did not hear back by press time.

This post appeared first on FOX NEWS
previous post
Trump’s energy chief to unleash Gulf drilling with major rule change
next post
Former Trump official slams UN reform efforts as ‘eight and a half years late’

Related Posts

US-Ukraine inching toward mineral deal amid last-minute roadblocks

April 30, 2025

Claudia Sheinbaum elected as Mexico’s 1st female president

June 4, 2024

Rubio meets Saudi Arabian officials ahead of US-Russia...

February 17, 2025

Thom Tillis announces retirement from Senate after clash...

June 29, 2025

Pentagon challenged on notion US strikes are deterring...

February 24, 2024

Trump urges Biden to follow through with debate...

May 11, 2024

‘There’s always consequences’: GOP rebels plot mutiny against...

December 17, 2024

Trump to skip federal court hearing Thursday, plead...

September 5, 2024

Federal agencies control fates of employees who bucked...

February 25, 2025

Hospitals nationwide challenge Trump’s executive order on transgender...

February 13, 2025

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Ex-Trump prosecutor Jack Smith under investigation by government watchdog Office of Special Counsel

      August 3, 2025
    • Trump tells Schumer to ‘GO TO HELL’ over Senate nominee deal funding demands after negotiations collapse

      August 3, 2025
    • Pirro confirmed as D.C. U.S. Attorney amid partisan clash as Dem nominee blockade continues

      August 3, 2025
    • Dems dig in, Trump demands all: Nominee fight boils over in Senate as GOP looks for a deal

      August 2, 2025
    • Trump 1.0 alums share chilling Google message from before second-term return: ‘LAWFARE at its finest’

      August 2, 2025
    • Trump closes week with plans to reposition subs amid heightened Russia tension, new tariffs

      August 2, 2025

    Categories

    • Business (1,330)
    • Politics (6,644)
    • Stocks (904)
    • World News (461)
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved