Moderate GOP group warns of trouble for tax reform

WASHINGTON — Twenty moderate Republicans in the House of Representatives have warned that efforts to overhaul the federal tax code could be jeopardized by demands for including major spending cuts in a fiscal 2018 budget resolution.

In a Friday letter to House Speaker Paul Ryan, lawmakers from the moderate Tuesday Group said that including hundreds of billions of dollars in cuts to mandatory programs could be “extremely problematic” for tax reform and asked for a budget delay until Senate Republicans finish their debate on health care legislation.

“We fear that if the House persists on pursuing this course, it could imperil tax reform,” wrote the lawmakers, who were led by Rep. Charlie Dent of Pennsylvania.

Republicans must pass a 2018 budget resolution to unlock a key legislative tool known as reconciliation, which the party needs to move a tax bill forward without support from Democrats.

But members of the conservative House Freedom Caucus say they will back a spending plan if it cuts mandatory programs including Medicaid and food stamps, reductions that moderates oppose.

“House Republicans have made significant progress on budget decisions, and these family discussions will continue amongst the conference,” Ryan spokeswoman Ashlee Strong said in a statement.

The Freedom Caucus and Tuesday Group each represents enough House Republicans to stymie legislation on its own.