Over Trump's tax, divided Republicans seek unity

 

Despite bitter disagreements among the majority Republicans regarding the savings that will be required to fund the sweeping tax cuts that President Donald Trump has promised, US senators were scheduled to vote on unlocking trillions of dollars for them on Saturday. The row comes with Wall Street leading a global markets bloodbath as countries around the world reel from Trump’s trade war, and Democrats argue that now is not the time to be entertaining significantly reduced government spending.

 However, as it prepared for the crucial vote on a Trump-backed "budget resolution" that kicks off negotiations on how to implement the president's domestic agenda, the Senate's Republican leadership was just as concerned about friendly fire from its own disgruntled constituents. Republicans in the Senate and House have disagreed about how much power to wield, and lawmakers are already wary of public outrage over Elon Musk's unprecedented reduction of the federal bureaucracy. Before they can draft Trump's massive bill to extend his first-term tax cuts, boost border security, and increase energy production, both chambers must adopt identical versions of the budget blueprint, a task that has proven beyond them during months of contentious discussions. John Thune, the Republican leader in the Senate, stated that "this resolution is the first step toward a final bill to make permanent the tax relief we implemented in 2017 and deliver a transformational investment in our border, national, and energy security – all accompanied by substantial savings." The senators were locked in a session that lasted all night to vote on dozens of proposed changes to the plan. Some of the changes were meant to force Republicans to talk about Trump's tariffs on imports from other countries. They hoped to move to a vote on final passage later Saturday morning, although the timetable depends on how quickly the upper chamber of Congress can get through its marathon so-called “vote-a-rama” on the amendments.

 If the plan gets through the Senate, it will still need approval by the House, with Republican leaders desperate to get it to Trump’s desk before Congress begins a two-week Easter break next Friday.

 Democrats have slammed the framework, claiming it will trigger further major cuts to essential services.

 To prevent a debt default this summer, the proposal would increase the country's borrowing limit by $5 trillion, delaying a subsequent increase until after the midterm elections in 2026. Experts say the tax cuts — which would greatly expand the relief agreed in 2017 — could add in excess of $5 trillion to national debt over the next decade.

 The resolution, according to the libertarian Cato Institute, is a "fiscal train wreck" that "actively worsens our nation's debt trajectory." At a White House event on Wednesday, Trump, who has been praising the plan on social media, expressed his "complete and total support" for the text. However, the Republican leadership in the House wants to cut spending by $1.5 trillion, while the Senate Republicans are looking for $4 billion in modest savings. When asked if he would support the Senate resolution, South Carolina Republican Congressman Ralph Norman responded, "To me, it's dead on arrival."