9 hours Ago By Emel Akan
WASHINGTON—President Donald Trump met with Republicans from the Senate Finance Committee at the White House on March 13 to discuss a budget proposal that outlines the president’s policy priorities, including extensions of tax cuts. The meeting took place against the backdrop of an ongoing government shutdown threat from Senate Democrats and rising disagreements over a budget plan with House Republicans. Although the meeting was not publicly announced, the White House confirmed that Trump met with committee members in the afternoon following his meeting with NATO Secretary General Mark Rutte in the Oval Office.
Congress is facing the possibility of a government shutdown, if lawmakers fail to pass a funding bill by March 14. On March 11, the House of Representatives passed a bill to fund the government through Sept. 30.
The bill increases defense spending by about $6 billion while cutting non-defense spending by some $13 billion. The measure, known as a continuing resolution, passed in a near party-line vote of 217-213. Senate Republicans now require Democratic votes to advance the bill.
However, some Democrats have opposed the measure, stating that they prefer a clean 30-day government spending bill that will fund the government at the existing level rather than a six-month funding measure. On March 12, Senate Minority Leader Chuck Schumer stated that Democrats wouldn’t vote for the bill passed by the House and that the GOP, with its slim majority, wouldn’t have the 60 votes needed to overcome a filibuster in the upper chamber. However, just a day later, Schumer reversed his position, announcing he would support the bill to keep the government open.
More Democrats are expected to align with his decision. “While the CR bill is very bad, the potential for a shutdown has consequences for America that are much, much worse,” Schumer said in a floor speech. “I believe allowing Donald Trump to take even much more power via a government shutdown is a far worse option.
” Before Schumer’s remarks, Trump said that a government shutdown would undermine discussions around passing his agenda, primarily extending 2017 tax cuts. “Well, if they do a shutdown, then ultimately that might lead to very, very high taxes,” Trump told reporters during his meeting with Rutte. “Because we’re talking about a shutdown—we’re talking about getting to work immediately on the greatest tax bill ever passed.
” The House plan includes some spending cuts to partially offset the deficit impact of the tax cuts, whereas the Senate is pursuing a creative accounting approach by adding a “current policy baseline” that allows them to change the baseline used to measure the budgetary impact of legislation from current law to current policy. This will dramatically reduce the amount of revenue increases or spending cuts needed to offset the extension of tax cuts. One provision of the House blueprint instructed the House Energy and Commerce Committee to reduce the deficit by $880 billion—which could require cuts to the Medicaid entitlement program.
Trump has opposed cuts to Medicaid, and some Senate Republicans have already voiced concerns about the proposal, making it likely to remain a topic of contention. In addition, the Senate budget plan contains an additional $150 billion for the Pentagon, while the House version includes $100 billion. House Republicans’ budget proposal would increase the debt ceiling by $4 trillion.
In contrast, the Senate’s budget framework doesn’t allow raising the debt limit. As the tax portion of the bill will require time to negotiate, Senate Republicans are moving forward with a two-part plan, while House Republicans prefer an all-in-one package. A key element of Trump’s economic plan is to extend the 2017 tax cuts, which passed during his first term.
A new U.S. Chamber of Commerce survey shows strong support for permanently extending the tax cuts, with 64 percent of voters in favor.
“We’re seeking permanent income tax cuts all across the board,” Trump said on March 4 during his address to a joint session of Congress. He told Democrats that American voters want the tax cuts extended, and they must act on it. “I’m sure you’re going to vote for those tax cuts, because otherwise I don’t believe the people will ever vote you into office,” he said.
“So, I’m doing you a big favor by telling you that.” Trump also reiterated his call for tax cuts for companies that manufacture in the United States, as well as eliminating taxes on tips, overtime pay, and Social Security benefits. “I also want to make interest payments on car loans tax deductible, but only if the car is made in America,” he said on March 4.
Trump further announced plans to introduce special tax incentives for shipbuilders to bring the industry back to the United States. He also vowed to restore the 100 percent bonus depreciation deduction for companies purchasing assets like equipment and machinery, retroactive to Jan. 20 of this year.
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