Republican senator rejects tax plan

Wisconsin’s Ron Johnson becomes the first Republican senator to say he opposes his party’s tax bill, signaling potential problems for GOP leaders.

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 crown- ing 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.

Democrats on the Senate Finance Committee 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.

Repealing the “Obamacare” individual mandate would save $338 billion over the coming decade because fewer people would be pressured into getting government-paid coverage like Medicaid. Senate Finance Committee Chairman Orrin Hatch, R-Utah, used the savings to make his bill’s personal tax reductions modestly more generous.

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 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.

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 socalled 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 muchof their income.

In the House, a small group of Republicans largely from New York and New Jersey was rebelling because the House plan would erase tax deductions for state and local income and sales taxes and limit property tax deductions to $10,000.