1st GOP senator opposes tax bill
WASHINGTON — Wisconsin’s Ron Johnson on Wednesday became the first Republican senator to say he opposes his party’s tax bill, signaling potential problems for GOP leaders. Passage of a similar package seemed certain Thursday in the House, where a handful of dissidents conceded they expected to be steamrolled by a GOP frantic to claim its first major legislative victory of the year.
Eager to act before opposition groups could sow doubts among the rank-and-file, Republican leaders were anxious to hand Donald Trump the first crowning bill of his presidency by Christmas. The two chambers’ plans would slash the 35 percent corporate tax rate to 20 percent, trim personal income tax rates and diminish some deductions and credits — while adding nearly $1.5 trillion
to the coming decade’s federal deficits.
Republicans touted their legislation as providing tax breaks for millions of families and leaving companies with more money to produce more jobs.
“It represents a bold path forward that will allow us as a nation to break out of the slowgrowth status quo once and for all,” said House Ways and Means Committee Chairman Kevin Brady, R-Texas, as his chamber debated the bill.
Democrats said the measures would deliver the bulk of their benefits to higher earners and corporations. In the Senate Finance Committee, they focused their attacks on two provisions designed by Republicans to save money.
One would repeal President Barack Obama’s requirement that people buy health coverage or pay a fine, a move the nonpartisan Congressional Budget Office projects would result in 13 million more uninsured people by 2027. The other would end the personal income tax cuts in 2026 while keeping the corporate reductions permanent.
“We should be working together to find ways to cut taxes for hardworking middle-class families, not taking health care away from millions of people just to give huge tax cuts to the largest corporations,” said Sen. Bill Nelson, D-Fla.
The Finance panel was on track to approve its proposal by the end of the week. But with GOP leaders hoping for full Senate passage early next month, concerns by Johnson — and perhaps others — would have to be addressed.
Using special procedures, Republicans controlling the Senate 52-48 can approve the legislation with just 50 votes, plus tie-breaking support from Vice President Mike Pence. With solid Democratic opposition likely, they can lose just two GOP votes.
Besides Johnson, Republican Sens. Susan Collins of Maine, Jeff Flake of Arizona and Bob Corker of Tennessee have yet to commit to backing the tax measure.
Johnson complained the bills were more generous to publicly traded corporations than to so-called pass-through entities. Those are millions of partnerships and specially organized corporations whose owners pay levies using individual, not corporate, tax rates. While details of the House and Senate bills differ, many pass-through owners would owe more than 20 percent in taxes for much of their income.
“These businesses truly are the engines of innovation and job creation throughout our economy, and they should not be left behind,” Johnson said in a written statement. But he left the door open to changes “so I can support the final version.”