On May 30, White House Press Secretary Sean Spicer explained that President Trump’s “plan for the most significant tax reform in decades continues to progress.” However, that may not reflect reality as there appears to be significant pushback from House Republicans alone. So much so, that there appears to be a divide amongst the party between what Trump’s plans are for tax reform and the House Republicans’ plans derived from a “blueprint” released in June of 2016.
It should come as no surprise that following 8 years of the Obama Administration with now with Trump in the White House, both House and Senate Republicans seek to bring their own spin to tax reform into Congress. The biggest point of contention? Tax cuts. Since the start of his campaign, Trump has promised to repeal and replace the Affordable Care Act and with it the elimination of ACA-mandated taxes. When his first attempt at the American Health Care Act hit the House floor, it ultimately died there.
By the second go ‘round, the amended version passed the House and is now sitting in the Senate. This amended version appears to be picked apart, due partially from the Congressional Budget Office report highlighting significant debt plus 23 million uninsured Americans that would result from the passing of the amended AHCA. Now, the idea of removing all ACA-related taxes remains uncertain, along with other possible tax cuts. Add to that the shaky future of the Border Adjustment Tax (BAT) on certain imports and the implementation of temporary tax cuts, and Republicans are scattered across both sides of the fence when it comes to tax reform.
This appears to be a key opportunity for Senate Democrats to continue their stated goal of a more bipartisan approach to both tax reform and the healthcare of this nation. However, both Trump and his Administration are speaking confidently in favor of Republican plans, despite having only half the support of the room.
