Republicans block Trump tax-cut bill over spending demands

REUTERS/LOREN ELLIOTT

The U.S. Capitol building is pictured at sunset on Capitol Hill in Washington, in November 2019. President Donald Trump’s sweeping tax bill failed in a procedural vote in a key congressional committee today, as five Republicans rejected the package amid calls for deeper spending cuts, potentially delaying its passage in the House of Representatives.

WASHINGTON >> President Donald Trump’s sweeping tax bill failed in a procedural vote in a key congressional committee today, as five Republicans rejected the package amid calls for deeper spending cuts, potentially delaying its passage in the House of Representatives.

The vote came despite Trump calling for Republicans to “UNITE behind” the legislation, saying on social media: “We don’t need ‘GRANDSTANDERS’ in the Republican Party.

STOP TALKING, AND GET IT DONE!”

Five of 21 Republicans on the House Budget Committee voted to block the measure, saying they would continue to withhold support unless Speaker Mike Johnson agreed to further cuts to the Medicaid healthcare program for lower-income Americans and the full repeal of green energy tax cuts implemented by Democrats.

The vote is likely a temporary setback for the measure in a Congress that is controlled by Trump’s Republicans and so far has not rejected any of his legislative requests. But it could delay plans for a vote by the full House next week.

The measure would add trillions of dollars to the federal government’s $36.2 trillion in debt.

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House Budget Committee Chairman Jodey Arrington convened the panel by stressing the legislation’s importance to voters who elected Trump to the White House and gave the party full control of Congress last November.

“They want common sense policies. And they want from all of us a commitment to putting America and Americans first. Let’s give the people what they voted for,” the Texas Republican said.

‘WRITING CHECKS WE CANNOT CASH’

Republican Representatives Chip Roy, Ralph Norman, Andrew Clyde, Josh Brecheen and Lloyd Smucker joined all 16 Democrats on the committee in voting against the measure.

“We are writing checks we cannot cash and our children are going to pay the price. So, I am a ‘no’ on this bill unless serious reforms are made,” Roy, of Texas, told the committee.

The lawmakers said they hoped to reach a deal with Johnson to amend the bill and enact Trump’s tax cuts.

The legislation would extend tax cuts passed during Trump’s first term. Congress’ bipartisan Joint Tax Committee estimates the tax cuts would cost $3.72 trillion over a decade. Trump has highlighted measures, including lifting taxes on tips and overtime that Republicans say would boost working-class Americans, while critics say the bill will offer more benefits to the wealthy.

Democrats condemned the legislation as a vehicle for giving billionaires tax cuts, while citing a projection from nonpartisan congressional researchers that proposed spending cuts to Medicaid and federally subsidized private health insurance available through the Affordable Care Act could lead to 8.6 million Americans losing health coverage.

“No other previous bill, no other previous law, no other previous event caused so many millions of Americans to lose their healthcare. Not even the Great Depression,” said Representative Brendan Boyle, the committee’s top Democrat.

The Republicans are split between three factions: moderates from Democratic-led states who want to raise a federal deduction for state and local taxes; hardliners demanding that a bigger SALT deduction be offset by deeper cuts to Medicaid and the full repeal of green energy tax credits; and other moderates determined to minimize Medicaid cuts.

The proposed legislation would impose work requirements on Medicaid beginning in 2029. Hardliners want those to begin immediately and have called for a sharp reduction in federal contributions to Medicaid benefits available to working-class people through the Affordable Care Act – an option vehemently opposed by Republican moderates.

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