Trump and taxes: Back to drawing board, seeks GOP consensus

Apr 14, 2017, 10:35
Trump and taxes: Back to drawing board, seeks GOP consensus

The Obama administration filed an appeal, and the subsidies continue to be paid while GOP lawmakers and Trump officials work out a settlement. "Now they're dealing with the realities of a closely divided Congress and a president who wants a win on this key, signature issue", said one business lobbyist, who spoke on condition of anonymity.

ATLANTA (AP) — President Donald Trump is a unifying force for Democrats, bringing together disparate factions in opposition to almost every presidential move.

Democratic lawmakers and activists plan to hit the streets Saturday at Tax Day protests around the country and demand President Donald Trump release his tax returns. Condemning Trump's comments, Schumer called the attempt to negotiate a "cynical strategy". Afterward, Trump threatened to let Obamacare collapse on his watch, as a way to force Democrats to come to him with offers to make changes to the law.

Trump also wants to streamline the income tax system, cut federal regulations, reduce corporate income tax and add new taxes to prod companies to keep or move production to the United States. President Donald Trump has sometimes said tax changes should result in a cut in taxes while House Republican leaders have said a tax overhaul should raise the same amount of money, though their definition of the same amount includes factoring in forecasts of faster economic growth and ignoring the costs of letting taxes now slated to come into effect instead being eliminated. This may foil efforts by Republicans to score legislative victories for President Trump within August.

"Whenever you start talking major tax reform, whatever else you're tying it to becomes secondary", Scribner said. Except, the Associated Press reported Monday, Trump has "scrapped" his tax plan from the campaign and has gone "back to the drawing board" for a new plan.

"The White House is going to need its own clear direction, or it's going to need to defer to Congress, but saying that your plan is forthcoming and then not producing a plan kind of puts everything in stasis", said economist Alan Cole. But at a minimum, it could draw increased attention to the fact that congressional Republicans continue to look the other way while Trump continues shredding basic norms of ethics and transparency.

"You will have a White House-Donald Trump tax plan that we are going to take down to the Hill and try and sell", he said.

Mark Mulvaney, the budget director of the White House, minced no words when he said that the House can do whatever it can.

Without the subsidies, the letter on Wednesday said, more insurers could leave the Obamacare exchanges, premiums for 2018 and beyond would rise, and providers would have additional uncompensated care costs, because they would not receive payments that help cover the costs of low-income patients.

Another sticking point involves the diverse ideologies at play inside the Trump White House.

Advocates of Ryan's plan say it would generate revenues that would help Congress avoid paying for tax cuts by expanding the national deficit. "People, when they make purchases, will see the real cost of government at the time of a retail good or a retail service".

Trump said he believed that withholding the payments for insurers would bring Democrats to the table on negotiations. It later sent out a statement calling the report "inaccurate". On the House side, no decisions have been made either on timing. However, one of the major reasons for tackling the health care issue first was because of the procedural reasons that would be fixed. "No", Trump told Fox Business News in an interview that aired Wednesday.

Trump said, "when I saw that, I said we have to do something".

On a Monday conference call, members of the caucus discussed a pair of tweaks to the bill that they concluded could possibly win their support: One would slightly modify a previous proposal to allow states to apply for waivers from Affordable Care Act insurance mandates, making clear that insurers could not price their products based on a person's health but could use other factors not now allowed under the ACA.

Trump and House Republicans already endured one defeat when many Congressional Republicans would not vote for their healthcare plan.