SUMMARY
- Trump plans to spotlight tax cuts as the core of his State of the Union agenda.
- House Republicans broadly support tax cuts but want specifics before backing new legislation.
- Tariffs remain a point of tension following a recent Supreme Court ruling limiting presidential authority.
WASHINGTON — President Donald Trump will make tax cuts the centerpiece of his State of the Union address Tuesday night, positioning them as the foundation of his legislative agenda while navigating Republican divisions over tariffs and economic messaging.
The president is expected to argue that the economy is strong but that additional tax relief is needed to sustain growth and counter voter concerns about high prices.
The renewed push for tax cuts comes as House Republicans weigh a possible second reconciliation package. Speaker Mike Johnson said lawmakers are open to further reductions but require details.
“We always want to do things on tax cuts. We’re Republicans,” Johnson told reporters. “If there’s more to do, we’ll find the path to get it done.”
The speech follows a Supreme Court ruling that Trump lacked authority to impose certain tariffs without congressional approval, complicating his trade strategy.
Johnson acknowledged the fallout, saying lawmakers are assessing legislative options.
Trump enters the address facing weaker approval ratings on economic management.
A recent CNN survey placed his approval at 36 percent, down from a year earlier. Inflation has slowed since mid 2022 but consumer prices remain elevated, shaping debate over whether tax cuts or targeted affordability measures should take priority.
Rep. Carlos Giménez, R-Fla., said he supports additional tax cuts but wants details. “I’d like to hear what he’s got to say,” Giménez said.
Rep. Chip Roy, R-Texas, said lowering income taxes could work alongside tariffs but added, “We need to see how the math works out.”
Douglas Holtz-Eakin, president of the American Action Forum and former Congressional Budget Office director, said new tax cuts would need clear offsets to avoid expanding deficits.
“Markets will look closely at fiscal discipline,” he said. Meanwhile, Karen Dynan, professor at Harvard University and former Treasury official, said consumer sentiment remains fragile.
“Even with lower inflation, households feel cumulative price increases,” Dynan said. House Majority Whip Tom Emmer said the president may focus on prior legislative wins rather than unveiling sweeping new proposals.
The State of the Union address will test whether Trump can unify Republicans behind tax cuts while balancing legal constraints on tariffs and voter concerns about affordability issues likely to shape the economic debate for the remainder of the year.
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