Signs of trouble may loom ahead for the Trump administration’s promise to deliver on passing the largest tax cuts in 30 years, after the Republican-controlled Congress just narrowly voted to approve its budget early Thursday afternoon.
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The House of Representatives voted to clear the Senate’s $4 trillion budget -- which paves the way for the House Ways and Means Committee to introduce tax reform legislation -- with a vote of 216-212. Twenty Republicans, including conservatives unhappy about deficits and debt, voted no. If the GOP lost two more votes, the budget would not have passed.
Resistance to the budget came from New Jersey, New York and California representatives upset by the effort to roll back state and local tax deductions, which could mean higher taxes for many middle-class earners.
During an interview with FOX Business’ Charles Payne on “Making Money with Charles Payne,” Rep. John Faso (R-N.Y.) defended his decision to vote no on the budget so long as the effort to eliminate state and local tax deductions stands.
“The vote today,” he said, “I wasn’t about to vote for this because it was in essence saying ‘Trust me,’ and I trust what Ronald Reagan used to say to the Russians during missile negotiations: ‘Trust, but verify.’ So we need verification.”
Republicans, facing mounting pressure after failing to deliver on their seven-year promise to repeal and replace the Affordable Care Act, are negotiating with the party members who voted no in hopes of reaching a compromise, Faso said. That includes party leaders like Speaker Paul Ryan (R-Wis.) and Chair of the House Ways and Means Committee Rep. Kevin Brady (R-Texas).
Brady told reporters immediately after the vote that he’ll unveil the tax measure on Nov. 1. So far, the tax plan includes $1.5 trillion in cuts, which Republicans have said will benefit primarily the middle class and small businesses.
“We need to shape this final tax code so it doesn’t penalize people in states like mine and in districts like mine,” Faso said Thursday.