Trump Reportedly Fails To Convince GOP Holdouts On Tax Bill

While some holdouts want more drastic spending cuts, others think Trump’s deduction caps for individuals making $400,000 or less are not sufficient.

U.S. President Donald Trump speaks during a press conference in the Roosevelt Room of the White House on May 12, 2025, in Washington, DC. (Photo by Andrew Harnik/Getty Images)

Rounak Jain·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

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President Donald Trump has reportedly failed to convince a few Republican holdouts who want changes to his “One Big Beautiful Bill.”

According to a Reuters report, Trump pitched his tax bill to Republican lawmakers in a closed-door Capitol Hill meeting. However, he failed to convince two cohorts of Republicans—conservatives and moderates—who want changes to the bill.

While some holdouts want more drastic spending cuts, including tighter norms for the Medicaid health program, others are against Trump’s deduction caps for individuals making $400,000 or less.

Rep. Andy Harris (R-Md.), the chair of the conservative House Freedom Caucus, said he cannot support Trump’s tax bill the way it is right now.

“The President, I don’t think, convinced enough people that the bill is adequate the way it is,” Harris added.

On the other hand, blue state Republicans of the SALT (state and local tax) caucus find Trump’s deduction caps to be insufficient.

The President’s tax bill proposes a $30,000 deduction cap for individuals making $400,000 or less. Moderate Republicans are not in favor of this.

“While I respect the President, I’m not budging on it,” Rep. Mike Lawler (R-N.Y.) said.

Rep. Nick LaLota (R-N.Y.) hopes the discussion will result in a number that the SALT caucus could actually say yes to.

Trump’s tax bill would extend the President’s tax cuts from 2017 and provide tax breaks on income from tips and overtime pay. This was part of Trump’s campaign agenda.

The bill would also add new work requirements for some Medicaid recipients, which is expected to push 8.6 million people off the healthcare program and result in savings of $715 billion over 10 years.

Republicans have a 220-213 majority in Congress, and a 53-47 majority in the Senate. The Congress vote is planned for the end of this week.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, was down 0.34% at the time of writing.

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