Trump's late push for huge new corporate tax cuts

Source: Axios

12 hours ago


The Trump administration is pressing Congress to dramatically expand the number of business-friendly tax cuts in a budget bill that's already complicated and costly.

Why it matters: New additions, such as full expensing to build new factories in the U.S., are leading to confusion among senators and staffers on what President Trump absolutely must have in his tax bill, and how much it will ultimately cost.

"Everything here comes down to, how do you pay for it and how does it fit into our other priorities?" Sen. Tom Tillis (R-N.C.) told Axios.

"When we're having such a difficult time getting 'pay fors' for the other policies in the bill. We've got to have that discussion about timing and priority."

"Members are concerned about the price tag for new items," said a Senate official.

Driving the news: Treasury Secretary Scott Bessent and White House National Economic Council director Kevin Hassett explained to House and Senate leaders — the Big Six — on Monday that Trump wanted the tax portions of the bill to focus on bringing manufacturing jobs back to the United States.

The administration wants "deductibility for auto loans for American-made cars, and immediate expensing, 100% expensing for equipment," Bessent told reporters afterward.

"And we are going to add factory structures for that also."

On Tuesday morning at the White House, Bessent doubled down. "Bring your factory back, you can fully expense the equipment and the building," he said.

Zoom in: Some of the provisions Bessent mentioned to senators — like auto loan deductions — have been raised by Trump before, but many senators didn't think they were part of his core goals.

Read more: https://www.axios.com/2025/04/30/trump-corporate-tax-cuts-expensing-factories