GOP senators Bob Corker (Tenn.) and Ron Johnson (Wis.) are threatening to vote against their party’s tax bill in the Senate Budget Committee on Tuesday unless changes are made to address their concerns, a vote that would effectively kill it before it ever makes it on to the Senate floor.
Johnson is reportedly worried that the bill does not do enough to help small businesses, while Corker fears predicted deficit increases if the measure is passed.
The nonpartisan Congressional Budget Office (CBO) found that the proposed Senate GOP tax legislation would give substantial tax cuts and benefits to Americans earning more than $100,000 a year, while the nation’s poorest would be worse off. The CBO also said the bill would add $1.4 trillion to the deficit over the next decade.
Americans earning less than $30,000 would see their taxes go up under the Senate GOP tax bill by 2019, the CBO said, while most of those making under $75,000 would be negatively affected by 2027.
Republicans are aiming to have the full Senate vote on the tax plan as early as this Thursday. The House passed its own version of the tax-reform bill earlier this month, which differs from the upper chamber’s legislation.
Republican, Sen. Steve Daines (Mont.) has also said he cannot support the legislation in its current form because he fears the bill will leave “pass-through businesses,” whose income is taxed through the individual tax code, with a higher rate than other firms.
The Hill notes: “Republicans have a narrow 12-11 majority on the Budget Committee, so they can’t afford any defections from the panel’s GOP members.”
“I’m not exactly sure what’s going to happen in committee, we’re working diligently to fix the problem. If we develop a fix prior to committee, I’ll probably support it, but if we don’t, I’ll vote against it,” Johnson told Wisconsin reporters Monday afternoon.