The next fights of Republicans to be tough


After entangling the plan of GOP to revamp the health system of America, leaders of the Republican are now turning their attention to other matters of legislation. This failure has put forth warring factions in the Republican party and signals that the upcoming fights may become similar or more than the health care act. During the AHCA debate, members of the conservative Republican in the House Freedom Caucus held and blocked this bill for it did have ideological muster in replacing Obamacare.

Trump administration has been attempting to appease conservatives, and this has made the moderate Republicans withdraw the support they had for the bill. The president has now picked tax reforms agenda after the failure of the healthcare bill. The real battles are raising the ceiling room of the national debt and government funding. These conflicts will increase the division in the GOP and show techniques Trump will use in leading the political party.

Shutting down fights and growing debt

The presidency has said that tax reform will be the next agenda. However, another battle over legislation will present deeper and immediate implications to the government. In the summer, according to estimates, the Congress will raise the limits of the nation’s borrowing or face defaults in several federal debts.

Defaulting will be a disaster for the US and a worldwide economy. GOP members raised the debt limits in 2013, and it caused the federal government to get shut for two weeks making the Congress increase debt increase. Greg Valerie, a Horizon Investments political analyst, says that a default or another shutdown would reflect the fight over affordable healthcare.

In spite of the prediction of the tax reforms moving quickly, they overlook a certainty of fighting over spending. These fights will be amongst the Republicans and the Freedom Caucus who will be seeking to broad spending and moderate the battle of Republicans to soften spending reductions of Trump.

The aim of moderate Republicans is at avoiding a shutdown and would not want debt increase or pass a deadline for spending without cuts. This means that Trump will not have an option but to bring Democrats on board, which would mean pushing for provisions that will keep government funding or raise the debts.

Tax reforms

Both Trump and Republican leaders suggest that achieving tax changes will be difficult. The president says that he will be slashing federal corporate tax by about 20% from 35% and lower personal taxes. He stated that he would be unveiling something phenomenal on tax within three weeks. Valliere says that neither Trump nor the GOP teams have a ready plan.

He says that the reforms will be moving before summer on the floor of the house. Most congressional Republicans and Treasury Secretary are not up to speed regarding the complicated tax issues to be resolved.

Pedro da Costa of the business insider wrote that Trump’s team says that the current tax system had remained stagnant since 1986 when President Ronald Raegan was in power. Gluskin Sheff noted that Raegan took five years to craft a tax reform system that got through the Congress and Trump does not have a plan for this initiative. He continues to say that Trump, who has a less than 40% approval and spent government money on ‘repeal and replace’ failed bill, is unlikely to get a tax bill using the Republican Party.