This coming week is expected to be a busy week for U.S. President Donald Trump who will unveil a new tax reform plan on Wednesday and work with politicians on Capitol Hill to avert a government shutdown before Friday’s deadline and attempt to gain Republican support for a 2nd effort to repeal and replace Obamacare.
U.S. stock indexes received a 10 percent boost after Trump’s presidential win in November, largely based on the expectation that he would deliver on his pledge to cut taxes for corporations and individual Americans, lower regulations, and usher in a new era of stronger U.S. economic growth and more job creation during a period of time when the U.S. Federal Reserve is tightening monetary policy and interest rates are climbing.
President Trump initially said that his new tax plans would take a backseat to his healthcare plans to repeal and replace Obamacare.
However, House Republicans were unable to come together in late March to support the American Health Care Act, the proposed replacement healthcare legislation for Obamacare which lost steam and was never brought to the House floor for a vote after a March 23, 2017 Congressional Budget Office (CBO) report showed the proposed legislation would result in 14 million more Americans being uninsured by 2018 and average premiums in the nongroup market would increase before 2020.
In 2018 and 2019, according to estimates, average premiums for single policyholders in the nongroup market would be 15 percent to 20 percent higher.
Contained in a March 23rd letter addressed to House Speaker Paul Ryan, the Congressional Budget Office admitted that their revised estimate of the American Healthcare Act shows it would lead to less of a reduction with the federal deficit compared to their first estimate on March 13th.
Mick Mulvaney, Director of the Office of Management and Budget, said on Fox News Sunday that there are efforts underway to work on the language for new healthcare legislation written by the Senate Budget Committee after it was delivered to the House in a detailed form over the week-end.
“Regarding whether or not it gets done this week, I think what you saw Mr. Ryan say is if they have the votes this week, they’ll vote this week. And that’s what we expect” Mulvaney said on Fox News Sunday.
Averting A Government Shutdown
Democrats in Congress are unhappy that the president’s budget proposal to avert a government shutdown before Friday night contains a $1 billion down payment to fund the construction of a southern border wall which President Trump promised earlier during his presidential campaign would be paid for by Mexico.
Democratic House Leader Nancy Pelosi explained on NBC’s Meet the Press that Democrats don’t support the border wall, nor do Republicans on the border states.
“The wall is, in my view, immoral, expensive, unwise, and when the president says ‘well I promised a wall during my campaign,’ I don’t think he said he was going to pass billions of dollars of cost of the wall on to the taxpayer” Pelosi said.
It is possible that a short-term funding extension could be worked out in Congress before the end of the week that averts a government shutdown with lawmakers “kicking the can down the road” until a more comprehensive budget proposal is agreed upon.
Trump’s Tax Reduction And Reform Plan
After telling reporters on Friday and tweeting on Saturday about his upcoming plans to unveil a new tax reform plan on Wednesday, President Trump will be expected to provide some further details about the size and scope of his tax overhaul plans that are intended to generate more economic growth but could also lead to a larger federal deficit and ultimately lack enough Congressional support for implementation.
Mick Mulvaney, Director of the Office of Management and Budget, told Fox News Sunday that on Wednesday when Trump’s tax reform plans are unveiled on Wednesday there will likely be some type of outline provided about the type of tax rates that the president is introducing.
Previously, Trump said that he wants to lower the corporate rate from 35 percent to 15 percent, which is even lower than House Leader Ryan’s 20 percent proposal.
“I think what you’re going to see on Wednesday is some specific governing principles, some guidance. Also some indication of what the rates are going to be” Mulvaney said.
Mulvaney explained that Trump’s tax plans on Wednesday won’t be ready to be rolled out and ready for it to be voted on in Congress.
“I don’t think you’re going to see something and I don’t think anybody expects us to rollout bill language on Wednesday. In fact, we don’t want to do that” Mulvaney admitted.
Mulvaney said that on Wednesday for the first time they will outline what their principles are and ideas that they like.
Asked by Fox News Sunday host Chris Wallace about whether Trump’s tax overhaul plans will be revenue neutral or add to the national debt, Mulvaney said, “I don’t think we’ve decided that part yet.”
“Keep in mind, we have it’s a balancing act in that, Chris. You can either have a small tax cut that’s permanent or a large tax cut that is short-term. I don’t think we decided that. But you’ll know more on Wednesday” Mulvaney added.
Mulvaney said they have already started working with committees in the House and the Senate to build some momentum for the new tax plan.
Written and Edited By: