Republicans struggle to finalize tax cuts plan

Republicans are currently facing a challenge with their tax cut plans. They want to reduce several taxes, but they have set a limit of $4.5 trillion on how much money the federal budget can lose from these cuts over the next ten years. This amount isn’t enough to cover all their goals, which include ending taxes on tips and reducing corporate tax payments. Congress members are in negotiations to figure out what can be included in their tax cut bill. They need to decide what will stay and what will need to be left out. A key issue is that a significant part of the $4.5 trillion will be used to extend previous tax cuts from 2017. Those cuts, which lowered taxes for individuals and businesses, were scheduled to expire at the end of 2025. To keep the current tax rates, it will cost about $4 trillion over ten years. There are also some business tax breaks that are ending, which would require an extra $200 billion to restore. After accounting for these expenses, only about $300 billion would remain for new tax initiatives. This creates a complex situation for Republicans as they try to advance their tax policies.