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A principal reason changing the tax code is so difficult is that interest groups flood Washington looking for tax cuts but fight vigorously against any measure that would increase their bills.“It’s very, very hard to get done,” said Doug Holtz-Eakin, a former director of the Congressional Budget Office who served as economic adviser to Sen.Democrats are wary of that approach and prefer more direct government spending.Many Democrats and Republicans have tried — but failed — to pull off tax revisions in recent years.
“We’re going to roll our sleeves up, and we’re going to cut taxes across the board for working families, small businesses and family farms,” Vice President Pence said Saturday at an appearance in Scott Depot, W. A senior White House official, however, said it was unlikely that Trump would ramp up a major sales effort on retooling taxes immediately, given that his team had been planning on using the coming days to push for Senate action on the health-care bill.
Many Republicans have long vowed that an overhaul of the tax code must be “revenue neutral,” which means they need to find new revenue to offset the reduction in rates.
Trump’s advisers have not identified specific tax breaks they would eliminate to raise new revenue, and Trump himself often waved away debt concerns during the campaign. His plan: ‘Let Obamacare explode’] Meanwhile, House and Senate Republicans are at odds over the wisdom of a key component of tax restructuring. C.), argue that the scheme would drive up prices on consumer goods, and many large retailers are strongly opposed.
The lone exception for near-term victory could come with the confirmation of Supreme Court nominee Neil Gorsuch — but even that faces the prospect of a threatened filibuster by Democrats. “The fact is that, you know, you came out of the gate and you stumbled.” Doug Heye, a GOP consultant and former congressional staffer, said Republicans, having achieved control of both chambers of Congress and the White House, were left with a lot to prove.
Trump and Republican leaders continued Saturday in their attempts to put a brave face on the health-care debacle. The inside story of how Trump tried — and failed — to get a deal on health care] But others in the party acknowledged the political damage sustained by pulling the House bill, particularly for a president who had touted his own dealmaking prowess. “It sends a troubling sign to a lot of folks about the broader issue of whether Republicans will be able to govern,” he said.