House Republicans are divided over President Trump's $4.5 trillion tax-cut bill. While the bill seeks to make existing tax rates permanent and add new tax breaks, moderate Republicans fear Medicaid cuts, and fiscal conservatives question the plan's long-term sustainability.
Senate Republicans on Tuesday passed a major tax and spending bill demanded by Donald Trump, ending weeks of negotiations over the comprehensive legislation and putting it another step closer to enactment.
But it remains unclear whether changes made by the chamber will be accepted by the House of Representatives, which approved an initial draft of the legislation last month by a single vote. While Republicans control both houses of Congress, factionalism in the lower chamber is particularly intense, with rightwing fiscal hardliners demanding deep spending cuts, moderates wary of dismantling safety-net programs and Republicans from Democratic-led states expected to make a stand on a contentious tax provision. Any one of these groups could potentially derail the bill’s passage through a chamber where the GOP can lose no more than three votes.
The idea of quickly convening to for a vote on the more than 800-page bill was a risky gambit, one designed to meet Trump’s demand for a holiday finish. Republicans have struggled mightily with the bill nearly every step of the way, often succeeding by the narrowest of margins — just one vote. Their slim 220-212 majority leaves little room for defections.
Several Republicans are balking at being asked to rubber-stamp the Senate version less than 24 hours after passage. A number of moderate Republicans from competitive districts have objected to the Senate bill’s cuts to Medicaid, while conservatives have lambasted the legislation as straying from their fiscal goals.
Compounding these divisions is the discrepancy between the House and Senate versions of the bill. The Senate Finance Committee's alterations address crucial issues like Medicaid and clean energy tax credits, diverging from the House’s approach that emphasizes a more aggressive fiscal agenda . Furthermore, disagreements over state and local tax deductions (SALT) complicate negotiations and threaten the bill's passage . As GOP leaders strive for a swift resolution to meet Trump's demands, they must navigate these contentious dynamics to unify their caucus.
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