Why Targeting the Obamacare Mandate Could Kill Tax Reform in the Senate
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House Republicans have delivered on their promise to reform taxes. On Thursday, they approved landmark tax legislation on a vote of 227-205.
Similar legislation has been approved by the Senate Finance Committee, but gaining approval from the full Senate, even from Republicans is expected to be much more difficult.
House Republicans were all smiles Thursday after they delivered on their promise to pass tax reform. They see it as a big win for President Trump who did some last minute lobbying on Capitol Hill.
"This country has not rewritten its tax code since 1986. The powers of the status quo in this town are so strong, yet 227 men and women of this Congress broke through that today. That is powerful," said Speaker of the House Paul Ryan, R-Wisc.
"Today is a great win for the American people. Now the Senate gets to do their job," said Rep. Steve Scalise, R-Louisiana.
In the Senate, Republicans can only afford to lose two party votes, because all Democrats are expected to oppose the tax bill.
So far, Republican Sen. Ron Johnson of Wisconsin says he opposes the current bill under consideration in the Senate. He wants to see small business owners get the same tax reduction proposed for big corporations.
Sen. Susan Collins of Maine is once again concerned about changes in Obamacare. She opposes a portion of the tax bill that eliminates the Obamcare insurance mandate. The bill approved by the House does not eliminate the mandate.
Democrat Sen. Ron Wyden says the Senate tax bill is now officially a health care bill because it eliminates the Obamacare mandate.
"This is not just another garden variety attack on the Affordable Care Act. This is repeal of that law," the Oregon senator said.
Current law requires Americans to have health insurance or they must pay a fine. More than 6.5-million Americans paid the fine last year.
Republicans say, in reality, the mandate is a forced tax on the poorest Americans. Doing away with it will save the country about $300 billion.
Senate Finance Committee Chairman Orin Hatch, R-Utah, explained, "The individual mandate isn't just any tax. It's a terribly regressive tax that imposes harsh burdens on low and middle-income taxpayers. According to the IRS, roughly 80 percent of Americans who have paid the individual mandate tax in 2015 made less than $50,000 a year."
Now that the House has approved tax reform, Republicans in the Senate are expected to make some adjustments to their proposal to win support from party opponents.
Congressional Republicans remain confident they can send a final bill to the president's desk by the end of the year.
LINKS:
House Passes Tax Reform Bill in First Step Toward Tax Cuts for Americans
1 GOP Senator Throws Monkey-Wrench in Tax Plan, Another Tells CBN News No Problem
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