Health bill failure hurts prospects for tax overhaul

WASHINGTON (AP) – House Republicans’ failure to repeal Barack Obama’s health care law deals a serious blow to another big part of President Donald Trump’s agenda: tax reform.

Trump and House Speaker Paul Ryan, R-Wis., say they will soon turn their attention to the first major rewrite of the tax code in more than 30 years. But they will have to do it without the momentum of victory on health care.

Just as important, the loss on health care will deprive Republicans of $1 trillion in tax cuts.

The GOP health plan would have repealed nearly $1 trillion in taxes enacted under Obama’s Affordable Care Act. The bill coupled the tax cuts with spending cuts for Medicaid, so it wouldn’t add to the budget deficit.

Without the spending cuts, it will be much harder for Republicans to cut taxes without adding to the federal government’s red ink.

“Yes this does make tax reform more difficult,” said Ryan. “But it does not in any way make it impossible.”

“That just means the Obamacare taxes stay with Obamacare. We’re going to go fix the rest of the tax code,” he added.

House Republicans couldn’t round up enough votes Friday to repeal and replace a law they despise, raising questions about their ability to tackle other tough issues.

“Doing big things is hard,” Ryan conceded as he vowed to press on.

Rep. Jodey Arrington, R-Texas, acknowledged that Friday’s turn of events made him doubtful about the Republicans’ ability to tackle major legislation.

“This was my first big vote and our first big initiative in the line of things to come like tax reform,” said the freshman. “I think this would have given us tremendous momentum and I think this hurts that momentum.”