Republican’s Next Task: Tax Reform
WASHINGTON D.C. - After the ObamaCare fail, the Republicans are pushing very hard to pass the tax reform. Republicans have failed to get a major legislative win this year despite having the first unified GOP government in a decade. Not much time after the health care repeal the Republicans released a framework for the new tax plan.
The GOP’s push for tax-reform is showing some early signs of trouble. So far Democrats and 18 Republicans have voted against it. The fiscal blueprint will allow Republicans to bypass a filibuster and pass tax legislation through the Senate with 51 votes. With a 52-seat majority, they need to win over at least 50 senators. That would allow Vice President Pence to break a tie.
The tax plan would cost the government $1.5 trillion in revenue over the next decade but advocates believe it would be made up by the tax cuts. The deduction benefits individuals who live in high-tax areas. Republican leaders are open to the idea of not immediately paying for the tax cuts but instead relying on economic growth. There are doubts that economic growth will create enough money to pay for the tax cuts within 10 years. Republican Ted Cruz have called for a 20 or 30 year window to allow the economy to grow and make up for the tax cuts. Some are hesitant about raising the deficit longer like Republican Bob Corker.
Republicans Bob Corker and Rand Paul are the most vocal skeptics on the tax plan. Rand Paul has mentioned that the tax cuts would raise taxes on the middle classes and he wouldn’t want that to happen. Bob Corker said that the tax reform is a much more difficult bill then the health care repeal. If the republicans can’t change the minds of Rand Paul and Bob Corker, they have to work very hard to keep every other member who is with them. Republicans are also pushing very hard to get Democrats on their side.
Some Republicans like John McCain, who voted no on the ObamaCare repeal has said he wants the tax reform to be a bipartisan which is a compromise between the Democrats and Republicans. Others have not commented on the tax plan because they want to see the whole and final plan. A core band of moderates that helped tank the ObamaCare repeal effort are keeping quiet as they wait for the whole thing.
Over in the House, GOP leaders are trying to figure out how to address the concerns of lawmakers from high-tax states who are worried about the possible repeal of the state and local tax deduction. A final solution has not yet been ready yet.
There is still much to do before we will know if the tax reform is going to be passed or not. Washington hasn’t had a success in a reform since 1986. Republicans do know that there’s a universal agreement that the tax plan needs a change.
