1st GOP senator opposes tax bill in early sign of problems

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 aGOP frantic to claimits firstmajor legislative victory of the year.

Eager to act before opposition groups could sow doubts among the rank-and-file, Republicanleaderswere anxious to hand Donald Trump the first crowning bill of his presidency by Christmas. Trump planned to visit House GOP lawmakers Thursday at the Capitol in what seemed likely to be a pep rally, not a rescue mission.

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 promised tax breaks for millions of families and companies left withmoremoney to produce more jobs.

“It represents a bold path forward that will allow us as a nation to break out of the slow-growth 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 bestow the bulk of their benefits on higher earners and corporations. In the Senate Finance Committee, they focused their attacks ontwoprovisionsdesignedby Republicans to save money.

One would repeal President Barack Obama’s health law requirement that people buy coverage or pay a fine, a move the nonpartisan CongressionalBudgetOffice projects would result in 13 million more uninsured people by 2027. The other would end the personal income tax cuts in2026while 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 would erase tax deductions corporations,” said Sen. Bill for state and local income and Nelson, D-Fla. sales taxes and limit property

The Republican-led Finance tax deductions to $10,000. panel was on track to Their numbers seemed approve itsproposalbyweek’s insufficient to derail the bill. end. It shut downDemocrats’ Asked if they could stop it, initial efforts Wednesday to Rep. PeterKing, R-N.Y., shook modify the Senate bill, voting his head and said, “I don’t along party lines against think so.” amendments aimed at protecting Repealing the “Obamacare” health care coverage individual mandate for veterans or people with would save $338 billion disabilities, mental illness or over the coming decade because opioid addition if the insurancemandate fewer people would be is ended. pressured into getting government

ButwithGOP leaders hopingpaid coverage like for full Senate passage Medicaid. Senate Finance early next month, concerns Committee Chairman Orrin by Johnson and perhaps Hatch, R-Utah, used the savings others would have to be addressed. to make his bill’s personal tax reductions modestlymore

Republicans controlling generous. the Senate 52-48 can approve Ending the bill’s personal the legislation with income tax cuts in 2026, derided just 50 votes, plus tie-breaking byDemocrats as a gimmick, support from Vice President was designed to pare Mike Pence. With solid the bill’s long-termcosts. Legislation Democratic opposition likely, cannot boost budget they can lose just two GOP deficits after 10 years if it is votes. to qualify for Senate procedures

Besides Johnson, Republican barring bill-killing filibusters. Sens. Susan Collins of Those delays take 60 Maine, Jeff Flake of Arizona votes to block, numbers Republicans and Bob Corker of Tennessee lack. have yet to commit to backing “To pay for these handouts the taxmeasure. to multinational corporations,

Johnson complained the millions of Americans bills were more generous to are going to lose their health publicly traded corporations care,” said Sen. RonWydenof thantoso-calledpass-through Oregon, topDemocrat on the entities. Those are millions of Finance panel. partnerships and specially organized Hatch said voiding the individual corporations whose mandate “means owners pay levies using individual, we have a chance to provide notcorporate, taxrates. greater tax relief to middleclass Whiledetailsof theHouseand families, through both Senate bills differ, many passthrough reduced penalties and lower owners would owe overall rates.” more than 20 percent in taxes TheHousemeasurewould formuchof their income. collapse today’s seven personal

“These businesses truly income tax rates into are the engines of innovation four: 12, 25, 35 and 39.6 percent. and job creation throughout The Senate would have our economy, and they should seven rates: 10, 12, 23, 24, 32, not be left behind,” Johnson 35 and 38.5 percent. said. But he left the door open Both bills would nearly to changes “so I can support double the standard deduction the final version.” to around $12,000 for individuals

AsmallgroupofHouseRepublicans and about $24,000 largely from New formarried couples and dramatically York and New Jersey was rebellingbecausetheHouseplan boost the current $1,000 per child tax credit.