Senate Republicans are encountering early pushback over a crucial aspect of their tax plan shortly after its unveiling, highlighting the hurdles ahead to bring the bill to the Senate floor next week.
Signs of Discontent
The discontent within the Republican Conference surfaced as Senate Finance Chair Mike Crapo briefed his colleagues on his segment of the bill on Monday night. This megabill plays a pivotal role in implementing key parts of President Donald Trump’s domestic agenda.
While the briefing aimed to clarify the committee’s rationale and address concerns, the immediate responses from lawmakers of various ideologies indicated that there is considerable work to be done. This is especially critical as Republicans strive to meet their self-imposed deadline of clearing the bill for the President’s approval by July Fourth.
Senator Ron Johnson (R-Wis.) expressed his reservations, stating that the current Senate Finance proposal falls short of addressing the nation’s financial future adequately. He indicated that he would oppose the bill in its current form if it were put to a vote.
Senator Josh Hawley (R-Mo.), known for his firm stance on Medicaid benefits, voiced alarm at the committee’s new plan, which goes beyond the House bill in reforming the health care safety net program.
Senator Hawley emphasized the need for significant revisions, expressing surprise and concern over the proposed changes. He highlighted the importance of understanding President Trump’s perspective on the matter, especially given the President’s previous stance against cutting Medicaid benefits.
Ongoing Negotiations
Despite the concerns raised during the Monday night meeting, Senate Republicans did not reach any agreements. Senate Majority Leader John Thune and Chair Crapo emphasized that negotiations are ongoing, both internally and with their House counterparts who passed their version of the bill a month earlier.
Senator John Hoeven (R-N.D.) noted the patience of Crapo and Thune during the briefing, highlighting their receptiveness to ideas from all members. He described the bill as a work in progress, indicating that discussions are still underway to refine its provisions.
Crapo’s bill aims to modify some of the tax breaks promised by Trump’s campaign, including adjustments to the endowment tax hike and the Child Tax Credit increase proposed in the House bill.
During the meeting, senators shared their suggestions with Crapo and Thune on what they believe should be included in the final bill. Senator James Lankford (R-Okla.) mentioned that while the atmosphere was not hostile, lawmakers raised pertinent questions and expressed their expectations.
Whip Count Challenges
Senator Thune intends to bring the bill to the floor next week, where only three GOP senators can vote against it while still ensuring its passage. Senator Rand Paul (R-Ky.) is anticipated to oppose the bill, underscoring the challenges facing Thune in securing support for the legislation.
Senator Rick Scott (R-Fla.) shares Senator Johnson’s concerns about excessive spending and inadequate deficit reduction. He believes that the proposed framework falls short in addressing Medicaid adequately.
Scott proposed reconsidering a provision that would reduce the federal government’s coverage of 90% of Medicaid expansion costs, presenting substantial savings to offset the bill’s considerable cost. However, this suggestion was deemed politically unfeasible in the House.
Senator Susan Collins of Maine refrained from commenting extensively after the meeting but reiterated her reservations about the provider tax. She acknowledged the leadership’s efforts to consult with her during the bill’s drafting but noted that not all her requests were accommodated.
Key Changes and Concerns
The Senate Finance Committee’s text, released on Monday, proposes adjustments to clean-energy tax credits and the state-and-local tax deduction cap. These changes have drawn mixed reactions from Senate Republicans and House counterparts.
Complications have arisen as both Senate and House Republicans scrutinize different aspects of the bill. While negotiations are ongoing to address concerns and align on critical issues, significant work lies ahead to reconcile differences between the two chambers and advance the bill for the President’s approval.
House Ways and Means Chair Jason Smith commended the Senate’s efforts to collaborate on key provisions, emphasizing the importance of reaching consensus between both chambers to finalize the bill successfully.
