House backs budget, faces challenges on tax plan

Party divisions, other problems could derail GOP’s top agenda item

Washington — Republicans powered a $4 trillion budget through the House on Thursday by a razor-thin margin, a close vote underscoring the difficulties that lie ahead in delivering President Donald Trump’s promise to cut taxes.

For now, Republicans sidestepped divisions within the party by voting 216-212 to permit them to begin work on a $1.5 trillion tax cut without fear of blocking tactics by Democrats. The legislative landscape is strewn with land mines, however, as GOP tax-writers pick winners and losers among interest groups, business sectors and rank-and-file voters.

The tax bill is the top item on the GOP agenda and would be Trump’s first big win in Congress. Republicans hope it would provide a much-needed jolt for the party’s political fortunes in advance of next year’s midterm elections. Republicans view passage of the upcoming tax measure as a once-in-a-generation opportunity, and its importance has only grown since the party’s debacle on health care.

The goal is a full rewrite of the inefficient, loophole-laden tax code in hopes of lower rates for corporations and other businesses and a burst of economic growth. But evidence is growing that some of their hoped-for bold steps — such as eliminating the deduction for state and local taxes — will be replaced by half-measures dictated by politics and a narrow margin for error.

GOP leaders scrambled in recent days to overcome resistance from House conservatives unhappy about deficits and debt, as well as opposition by lawmakers from high-tax states upset about plans to eliminate the state and local tax deduction. That could mean higher taxes for many middle-class earners, and top Republicans like Speaker Paul Ryan of Wisconsin promise a compromise that won’t be as costly to middle-class taxpayers.

Joining all Democrats in opposing the measure were 20 Republicans, a mix of spending hawks and centrists. More than half come from New York and New Jersey and vehemently reject any effort to roll back the state and local tax deduction.