EXCLUSIVE: The head of the largest Republican group in the House is using Tax Day as a platform to caution families about potential financial difficulties they may face next year if Republican plans for a significant policy overhaul do not succeed.
August Pfluger, the Chairman of the Republican Study Committee (RSC) from Texas, emphasizes that millions of American households could see tax increases of up to 20% if Congress allows the expiration of the 2017 Tax Cuts and Jobs Act (TCJA) initiated under President Trump. Pfluger stated, “If Democrats get their way and let these tax cuts expire, Americans will face the largest tax hike ever – with a 22% increase impacting 40 million families and 26 million small businesses.”
He believes it is crucial to make these historic tax cuts permanent to not only promote job growth but also to protect family finances against what he describes as the Left’s costly spending agenda.
The RSC, which serves as a conservative think tank for House Republicans, consists of over 175 members. Pfluger reiterated the committee’s commitment to making the tax cuts permanent so families can retain more of their hard-earned income instead of handing it over to the government.
Beth Van Duyne, a fellow Texas representative and head of the RSC budget task force, argues that extending the TCJA, along with implementing Trump’s other tax policies, would position the United States as a prime location for business investment and growth, benefiting both families and businesses.
“These essential tax reforms will work in parallel with our efforts to cut down federal regulations and bureaucratic red tape, enabling economic growth and financial security for the American people and our job creators,” she stated.
Tax reform is a central element of the Republicans’ plans regarding reconciliation—an approach that allows the ruling party to enact major fiscal changes with a simple majority in the Senate, changing the usual requirement from 60 votes to 51, as long as the bill pertains to taxes, spending, or national debt.
In addition to extending the TCJA cuts, there’s also a push to eliminate taxes on tips, overtime pay, and Social Security benefits for seniors.
Recently, House Republicans approved a budget framework to coordinate with the Senate’s reconciliation efforts, permitting congressional committees to start drafting policies. However, passing a bill in both chambers remains a significant challenge given the slim majority held by Republicans, with just three seats in each chamber.
The House’s proposal includes at least $1.5 trillion in cutting expenses, whereas the Senate’s baseline is $4 billion, with aspirations for even greater reductions. Extending the TCJA could decrease federal revenues by $4.5 trillion, prompting House conservatives to insist on major budget cuts to compensate.
The RSC leadership has insisted that any reconciliation plan should be deficit-neutral. Still, failing to extend Trump’s tax cuts ahead of the midterm elections in 2026 could present serious political repercussions and raise alarms about an economic downturn, especially given the added expenses of Trump’s tariffs.
Experts indicate that allowing these tax cuts to lapse could be a financial blow for families. One estimate suggests the median family could lose about $1,000, while a disruption caused by ongoing tariffs could cost households an average of $3,800, according to projections from various economic institutions.
The House Ways and Means Committee, responsible for tax legislation, issued a memo last year echoing Pfluger’s concerns about a potential tax hike if the TCJA is not extended. The memo stated, “Congress must act quickly to eliminate the risk of a tax increase and reassure the American people that the relief they seek has been delivered.”
