House Republicans cautiously started a public relations campaign on Friday to persuade skeptics to support their party’s comprehensive domestic policy measure. They traveled to Las Vegas for a hearing that focused on tax cuts, which polls indicate are among the bill’s few popular features.
Republicans on the tax-writing House Ways and Means Committee gathered at the Las Vegas warehouse of an electronic sign company to highlight President Trump’s new policies to remove taxes on overtime pay and some tip income. They claimed that the legislation would benefit regular Americans and spur economic growth.
As the letters OT glowed in fire-engine red on a sign across the way, a nod to the newly favorable tax treatment of overtime wages, Republican committee chairman Representative Jason Smith of Missouri said, “The new tax cuts will put more money in people’s pockets, better jobs in their communities, and a strong and prosperous America.”
However, the incident highlighted the difficulties of introducing legislation that public polls indicate is extremely unpopular, even as Republicans emphasized the bill’s strong elements, which they supported nearly unanimously this month. It coincided with the beginning of the House’s five-week summer recess, which may present the G.O.P. with a great chance to highlight its most notable legislative accomplishment. Republicans, however, are also acutely aware of the potential dangers of hosting unstructured meetings with people that may turn into tirades about the legislation.
Republicans summoned a number of witnesses, including a food delivery driver and an Italian restaurant waiter, to testify about the measure’s potential benefits in order to highlight its positive aspects during the hearing.
The server, Patrick Wrona, expressed his gratitude for the bill’s modification of the taxation of tipped workers.
Republicans acknowledged near the beginning of the session that the legislation they had worked so hard to pass weeks earlier had flaws that needed to be fixed.
During his opening statement, Mr. Smith stated that he would work to revise a section of the measure that has generated criticism: a significant tax hike on gamblers that may disproportionately harm the casino sector in Nevada, a crucial battleground state.
Mr. Smith, who backed the bill, said, “I can assure you that members on both sides of the aisle have heard you if you are worried about this change.” Additionally, I am aware that a large number of members from both parties are willing to work toward resolving it.
Nevada Democrat Representative Dina Titus said she was happy to see this improvement. However, she placed the burden of solving a crisis that Republicans had caused on them.
She said, “Let’s make sure we know who’s responsible.” And let’s try to repair it together.
The conversation illustrated the difficulty Republicans may encounter when they go back to their districts and attempt to get public support for the package, which severely reduces Medicaid and food assistance programs in order to pay for its tax cuts.
Many Republicans brought attention to parts of the plan that they disapproved of during a drawn-out and chaotic parliamentary process, such as the cuts to social safety net programs, which Democrats have ruthlessly targeted. Republicans, who overwhelmingly supported the bill at Mr. Trump’s insistence, now find themselves in the unenviable position of defending a policy whose flaws they have admitted and, in some cases, sponsored legislation to fix.
In addition to additional provisions that Mr. Trump pledged during this campaign, the law extends tax cuts that were implemented in 2017 and were set to expire at the end of the year. Additionally, it slashes SNAP food assistance and Medicaid by almost $1 trillion over ten years.
The measure, which will allow workers to deduct their taxes on tips and overtime pay beginning in 2025 until 2028, has problems that Democrats were keen to highlight. Numerous corporate tax benefits in the package are permanent.
Additionally, the tipping deduction has a $25,000 ceiling, so some employees could not earn enough to fully benefit from the new rule. Many already earn less than what is automatically deductible.
Representative Steven Horsford of Nevada stated that the tipping deduction should be permanent and that this plan does not go far enough in eliminating tip taxes.
Mr. Smith rejected the reasoning after the hearing.
He stated in an interview that people would claim it was only for four years and that it was fleeting. But what do you know? It’s better to have it for four years than to never have it.
According to sources, the Ways and Means Committee will hold a similar hearing on Saturday at the Ronald Reagan Presidential Library in Simi Valley, California, with an emphasis on how the bill will affect farmers and small businesses.
Both sessions have drawn criticism from Democrats for being arranged to mislead the public into believing that the measure is widely supported. Republicans invited all but one of the witnesses on Friday. And just roughly three dozen people seemed to be present, aside from news media and congressional personnel.