Even if they lick the wounds of a repeal of the Medical Care Act’s repeal, Republican leaders in Washington are seeing the next battle – in taxes.
“I would say we will probably start very difficult for the big tax cuts and tax reform,” Trump’s president Friday told reporters. “It’s going to be next.”
Republican House Speaker Paul Ryan, agreed, although he acknowledged that the defeat in health care was a failure.
“This makes tax reform more difficult,” Ryan said. “But that’s not impossible.”
Republicans were hoping to succeed in their goal of repealing the Affordable Care Act, also known as Obamacare, to generate momentum and team spirit that addresses other fights.
Instead, they carry an embarrassing failure – and disputes between factions that have torpedoed Obamacare repeal and are not likely to settle soon.
“If Trump can not align support for health care, it’s hard to see how it could lead to tax reform,” said William Gale, a senior fellow at the Brookings Institution and co-director of the Tax Policy Center.
Fiscal policy is probably as difficult or more difficult than health care, in terms of juggling interest groups, Gale said.
“It takes a president to be able to talk to people and provide coverage to individual legislators to be besieged by voters and lobbyists who lose benefits,” he said.
More conservative lawmakers, including members of the Liberty Group, were frustrated by the fact that the bill did not fully compensate for the Affordable Care Act before building something new.
The move would also give a significant tax cut for people earning more than $ 200,000 per year. The Blue House magicians insist that the collapse of health care does not spread to other parts of the president’s agenda.
“I think you can not tie these items together,” White House spokesman Sean Spicer told reporters on Friday. “Whether it’s immigration or tax reform, there’s still a big appetite out there.”
The resolution on the budget for the current budget year establishes that any conciliation measure should reduce the deficit, which derogation Obamacare GOP was designed to do.
Republicans could then draft a new budget resolution for the fiscal year ahead, with the easier deficit targets, allowing for more aggressive tax cuts.
Technically, the tax reform approved by the reconciliation can not yet add to the deficit. However, there are ways for legislators to circumvent this rule, for example by adopting other baselines.
The Trump tax plan proposed during the presidential campaign will swell the billion-dollar deficit, according to analysts, both in central centrist fiscal policy and Conservative Tax Foundation.
Both groups found that the largest economies in the context of this plan would go to the wealthiest taxpayers, the first percent of employees would receive a 10 to 20 percent increase in their income, while middle-income families would make smaller profits From 1 to 10 percent.