U.S. President Donald Trump and his congressional allies face perhaps their biggest obstacle yet. Hard-line Republicans are pushing for even deeper spending cuts, complicating the potential for a broadly supported tax and spending package. The legislation as a whole aims to address the nation’s growing budget deficit, currently at approximately $36.2 trillion. In fact, Trump made this case a centerpiece of his campaign to win the presidency. Despite administration efforts, even a well-timed and oriented recent visit to Congress to speak with Republican lawmakers has seen this important bill still stuck in the mud.
Democrats have decried the stalemate. First, their claim that these cuts will disproportionately benefit wealthy Americans at the expense of lower-income citizens. Democratic Representative Gwen Moore of Wisconsin voiced strong opposition, stating, “We’re going to ask Americans to finance tax cuts for billionaires on the national debt – on the credit card.” Democrats are rightly concerned that the bill doesn’t do enough to protect these vulnerable populations. In fact, their primary concerns focus on healthcare investments.
As negotiations continued into the early hours of Wednesday, a House committee meeting commenced at 1:00 AM local time (5:00 AM GMT). Even so, committee members and negotiators burned the midnight oil in hopes of achieving agreement. Republican Congressman Andy Harris of Maryland heading House Freedom Caucus. He cast doubt on the likelihood of ultimately getting to a successful agreement. “I think actually we’re further away from a deal,” he remarked, highlighting the divisions within the Republican Party.
Despite these challenges, some Republicans representing districts in Democratic-leaning states are advocating for larger tax cuts to appeal to their constituents. To help pay for these tax benefits, they suggest that the credits be increased for payments made to state and local governments. It looked like, according to a last minute deal reported, that the supplemental was going to further fortify these tax cuts. To most Republican constituencies, whose reaction was immediate and hostile.
On Tuesday, that was the same day that Trump’s movement came to Congress. His intention was to bring budget hawks and tax cut supporters together in support of the proposed legislation. He implored lawmakers to look at the still-pending bill as a first step toward fiscal accountability. Republican Congressman Jason Smith of Missouri emphasized the urgency of the situation, asserting, “Failure is not an option in getting this done.”
The latest impasse underscores the difficulty of maintaining fiscal conservatism while still appeasing appearances to party members and constituents. Our colleagues in Congress are addressing their needs directly. Both sides are deeply entrenched in their positions leaving the bill’s fate very much up in the air.