Senate Republican tax plan clears key hurdle, but final vote uncertain

WASHINGTON — President Donald Trump went to Capitol Hill on Tuesday searching for votes for a massive $1.4 trillion tax-cut package as GOP leaders scrambled to sway a dozen lawmakers who remained on the fence, threatening passage of the much-ballyhooed bill.

The tax bill cleared a critical hurdle when it was passed out of the Senate Budget Committee on a party-line vote, 12-11.

But obstacles continue to mount for the legislation as several GOP lawmakers held out for last-minute changes and Democrats boycotted a White House meeting with the president.

Trump sought to build support for the bill in a closed-door meeting with Republican senators on Capitol Hill. Later, at the White House, he predicted the tax-cut package would pass.

“I think we’re going to get it passed. I think it’s going to pass. And it’s going to be very popular,” Trump said.

The president, and Republicans facing midterm elections in 2018, desperately need a legislative victory following a year of defeats and missteps despite controlling the House, Senate and White House.

Senate Majority Leader Mitch McConnell, R-Ky., acknowledged the challenge of building a majority to pass the legislation.

“Big, complicated bills like this are challenging,” McConnell said, adding, “some members are still weighing in.”

Democrats are united in their opposition to the tax-cut plan, saying corporations and the wealthy will reap benefits partly paid for by middle-class families.

“We all know this is not a great product,” said Senate Minority Whip Richard Durbin, D-Ill., who said the bill would force working families to bankroll benefits for wealthy Americans and corporations that are currently posting historic profits.

Nevada’s two senators, Dean Heller, a Republican, and Catherine Cortez Masto, a Democrat, are split along party lines on the tax package, which could reach the Senate floor as early as Thursday.

The Senate tax-cut plan would lower the corporate tax rate from 35 percent to 20 percent and eliminate the alternative minimum tax to foster economic growth, jobs and improve wages, Republicans claim.

It would also eliminate the individual mandate in the Affordable Care Act, known as Obamacare, which would defund the system to provide federal subsidies for low-income people who purchase health insurance on public exchanges.

The Congressional Budget Office updated an analysis that found eliminating the individual mandate would cause insurance premiums for people on the exchanges to increase by 10 percent, and reduce the number of those insured by 4 million by 2027.

A House version of the tax cut package, passed earlier this month, would not eliminate the individual mandate, but would cut deductions for medical expenses, interest on student loans and cap the home mortgage interest deduction at $500,000.

Despite the differences, both bills would increase the debt by as much as $1.5 trillion over the next 10 years.

The increase in deficit spending prompted some GOP senators to seek a trigger mechanism that would reinstate current rates if spending soared past the mark. Sen. Bob Corker, R-Tenn., and Sen. Jeff Flake, R-Ariz., were two of those lawmakers seeking a concession on deficit spending.

Corker’s vote was needed to pass the bill out of the Budget Committee.

Sen. Ron Johnson, R-Wis., also a committee member, agreed to move the bill to the full Senate saying progress is being made on his request to increase tax cuts to smaller businesses, which he said were the economic drivers in states.

Other GOP senators have raised other concerns. Sen. John McCain, R-Ariz., complained about the process, but remained undecided on how he would vote. Sen. Susan Collins, R-Maine, has questioned the elimination of the individual mandate in the ACA, as well as tax breaks for those making over $1 million.

Sen. Lisa Murkowski, R-Alaska, had expressed concerns about the bill. But the Budget Committee’s inclusion of a provision to open wildlife areas in her state to oil drilling was largely seen as a move to win her support.

Republicans plan to muscle the bill through the Senate under special budget reconciliation rules that allow for a simple majority.

Since they hold a slim 52-48 majority, Republicans can afford to lose no more than two votes to pass the bill.

Legislation to repeal the ACA died on the Senate floor earlier this year when Collins, Murkowski and McCain voted against the legislation.

Contact Gary Martin at gmartin@reviewjournal.com or 202-662-7390. Follow @garymartindc on Twitter.