Senate Majority Leader John Thune (R-SD) said he will work to cut the U.S.’s “fiscal mess,” but acknowledged that the upcoming GOP tax cuts may not be fully funded.
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Thune, who became the Senate majority leader on Friday, said he will work to address long-term issues, according to the New York Post.
“I would like to see us as a nation do things that affect the long-term stability, future of our kids and our grandkids,” Thune said during an interview on NBC’s “Meet the Press.”
“We’re in a fiscal mess, $3[6] trillion in debt,” he added.
Thune said one of his top priorities will be ensuring that the U.S. has a strong military.
“But I think first and foremost it’s protecting the country,” Thune added of issues facing the US. “Military readiness will be a big priority for me,” Thune said.
The New York Post reported that incoming President Donald Trump and Senate Republicans will face fiscal issues in 2025, given that they will have to deal with expiring provisions of the 2017 Trump tax cuts, the return of the debt ceiling and expiring expanded subsidies in the Affordable Care Act.
Trump and congressional Republicans have made it clear that they want to extend the 2017 tax cuts and add other reforms.
The Tax Foundation estimates that such tax cuts could up more than $3 trillion to the national debt from 2025-2034.
During the interview, Thune said it could be difficult for Republicans to fund all of the tax reforms.
“Well, not perhaps all of it,” Thune said when asked about paying for the potential bill. “What I’m telling you is a combination of growth, a combination of offsets, and an expectation, I think, that if you want to avoid a $4 trillion tax increase, you’re going to have to take some steps to extend the current tax policy.”
“I believe there will also be a robust conversation about whether we can find offsets and achieve reductions in spending that would help offset some of that,” Thune said.
“Many of the tax provisions that are in law today that will be extended will have a very positive impact on growth in the economy,” he went on. “With growth, you get better-paying jobs, but you also generate more tax revenue.”
To pass the tax cuts, House Republicans will use a process known as “reconciliation,” which requires a simple majority vote. In the Senate, however, there is a 60-vote threshold needed to overcome a filibuster, as reported by the New York Post.
Thune has expressed his willingness to pass two “reconciliation” bills in the Senate to help implement Trump’s agenda.
“First would be a bill to address the border, energy and national defense. The goal would be to bring that to Trump’s desk so that he could have an early win. Then later in the year, a second bill would push tax reform, which is generally seen as more complicated legislation,” the Post wrote.
Thune’s comments come after he endorsed South Carolina Sen. Tim Scott (R) in the 2024 presidential primaries.
