Published: Fri, April 14, 2017
U.S. | By Eddie Scott

How Corporate Tax Reforms Could Impact the US Economy

How Corporate Tax Reforms Could Impact the US Economy

Here's the key Trump quote as far as investors are concerned: "The tax reform and the tax cuts are better if I can do healthcare first", he said. He held out hope that Republicans could forge a new health-care law despite the failed previous effort and subsequent talks that didn't yield a deal between the Freedom Caucus group of lawmakers and centrist Republicans.

In an interview with the Wall Street Journal Wednesday, Trump suggested the Obamacare would explode soon. The White House has made clear in recent days that it is grasping for a way to pay for tax cuts amid strong opposition to a 20% border-adjusted tax on imports that was supposed to offset the cost of a $1 trillion cut in corporate taxes. House Republicans sued to block the payments in 2014, but the Obama administration, and now the Trump White House, have defended against the challenge as it goes through the courts. Trump's administration has threatened to stop making the payments.

"It wasn't authorised by Congress", Trump told the Journal. "And those decisions will be made in the next month (or) two months".

"They have to make it work, because their standing in the House is in jeopardy, and Trump's standing to do things after the midterms is as well", GOP strategist Ford O'Connell said.

Democratic leaders also faulted Mr. Trump for leaving insurers and their customers on tenterhooks regarding Obamacare payments that are critical to the stability of the insurance market, as Republicans struggle to plot out their next steps.

It doesn't matter that going right would yield a completely different healthcare system than moving to the center. Trump's health care blackmail will also have the unintended effect of costing dozens of moderate Republicans their seats in the House. But Trump - in an interview with Fox Business that aired Wednesday - said the tax effort would now have to wait.

Walden wants Congress to appropriate more funding for the payments in a government funding resolution Congress has to pass by the end of the month, though the administration has the authority to continue the payments as the legal battle continues.

The president added, "I'm my own strategist and it wasn't like I was going to change strategies because I was facing crooked Hillary", referring to general election opponent Hillary Clinton.

President Trump is again reshuffling his congressional agenda, saying Congress should first pass a repeal of the Affordable Care Act before measures such as an overhaul of the tax code can be considered.

The president's remarks come weeks after the GOP's American Health Care Act was pulled from the House floor due to lack of support.

But Democrats won't support any effort to link infrastructure with health care if it includes repealing Obamacare, said Drew Hammill, a spokesman for House Democratic Leader Nancy Pelosi.

Without health care reform, the White House is looking at a scaled back tax cut proposal, White House aides tell FOX Business. Condemning Trump's comments, Schumer called the attempt to negotiate a "cynical strategy".

"Without funding of the (cost-sharing reductions) by Congress and the administration, there could be a ripple effect in the individual insurance market raising coverage costs for everyone", said a statement by Chip Kahn, President and CEO of the Federation of American Hospitals.

Like this: