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A New GOP Battle Begins as Republicans Look to Pass a Budget – New York Times

Thats a long way from talk about a large deficit-increasing tax cut, said Ed Lorenzen, of the Committee for a Responsible Federal Budget, a nonpartisan group committed to educating the public on fiscal issues. Im very curious to see how the White House and conservatives who have been advocating for a tax cut react to this.

The budget calls for a $621.5 billion national defense budget for 2018 and $511 billon for nondefense spending. It also calls for at least $203 billion in cuts over a decade in mandatory spending on programs such as Medicare and Social Security.

In that regard, the proposal is a direct rebuke of Mr. Trump, who promised not to touch those entitlement plans.

The budget also recommends repealing parts of the 2010 Dodd-Frank act that ushered in financial regulations after the last recession. And it suggested consolidation of federal work force development programs as a way to generate savings.

House Republicans were optimistic that the plan could become reality. In past years, our proposals had little chance of becoming a reality because we faced a Democratic White House, said Representative Diane Black, Republican of Tennessee and chairwoman of the House Budget Committee. But now with a Republican Congress and a Republican administration, now is the time to put forward a governing document with real solutions to address our biggest challenges.

Despite the differences with Mr. Trumps fiscal vision, Mick Mulvaney, the White House budget director, praised the outline. The administration urges the House Budget Committee, the full House and the Senate to move forward on a pro-growth budget resolution that supports the administrations goals of a strong national defense, fiscal responsibility and sustained economic growth, Mr. Mulvaney said.

But significant challenges await the House budget effort, and the infighting over health care has shown that Republicans are unlikely to reach an agreement easily on difficult pieces of legislation.

On Monday, Representative Mark Meadows, Republican of North Carolina, who leads the conservative House Freedom Caucus, said he did not think the proposed budget could win full House approval. He said he first wanted it to include deeper spending cuts and more details on the principles of tax reform.

The House budget proposal calls for more military spending than the budget produced by the White House. That proposed increase would break the caps imposed by the 2011 Budget Control Act. Changing that would require the support of Democrats.

The House Budget Committee is scheduled to hold a markup on the resolution on Wednesday, and any bill will have to be reconciled with the budget that the Senate eventually passes.

The Senate also turned its attention to overhauling the tax code on Tuesday, when the Senate Finance Committee held its first tax hearing and questioned a bipartisan panel of former Treasury officials. It also held a separate nomination hearing for David J. Kautter, the nominee for assistant Treasury secretary for tax policy.

The challenges that Republicans face in getting tax reform done were also on display in the Senate.

Democrats assailed Republicans for trying to go around them and urged them to learn the lessons of the health care legislation experience, and work together.

Whats needed is bipartisan tax reform that focuses on progressivity, helping the middle class, cleaning out flagrant tax loopholes, fiscal responsibility, and giving everybody in America the chance to get ahead, said Senator Ron Wyden, of Oregon, the ranking Democrat on the Finance Committee.

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A New GOP Battle Begins as Republicans Look to Pass a Budget - New York Times

Mitch McConnell’s Obamacare repeal plan stalled – CNN

Three Republican senators said Tuesday that they would oppose a procedural vote to advance the Senate's efforts to overhaul Obamacare, once again plunging into chaos Senate Majority Leader Mitch McConnell's latest efforts to make good on the GOP's seven-year campaign promise to gut the Affordable Care Act.

Sens. Lisa Murkowski of Alaska, Shelley Moore Capito of West Virginia and Susan Collins of Maine announced that they could not support any plan that would roll back significant parts of Obamacare without a replacement plan in place.

McConnell told reporters at a news conference that it is "pretty clear there are not 50 Republicans at the moment for a replacement", saying he still wants to hold a repeal-only vote "in the very near future." McConnell did not specify when that vote would be but Senate GOP whip John Cornyn told reporters a vote is expected some time this week.

That legislation was approved by a GOP-controlled Congress in 2015 and vetoed by then-President Barack Obama.

And the opposition that trickled out into the public Tuesday reinforced a painful reality for many Republicans to swallow -- that after years of railing against Obamacare, there is now not enough will within the party to pursue wholesale repeal of the law.

"My position on this issue is driven by its impact on West Virginians," Capito said in a statement. "With that in mind, I cannot vote to repeal Obamacare without a replacement plan that addresses my concerns and the needs of West Virginians."

She later tweeted she would not vote to move forward on a motion to proceed to repeal Obamacare without a replacement.

Murkowski called for Republicans to develop a new proposal in committees, a step that has thus far been skipped by GOP leadership in the chamber.

"I think what has to happen is the Republicans have to admit that some of the things in the ACA, we actually liked, and the Democrats have to admit that some of the things they voted for in the ACA are broken and need to be fixed," Murkowski told reporters.

White House deputy press secretary Sarah Huckabee Sanders said Tuesday that the White House's message to Congress is "do their job."

"At this point, inaction is not a workable solution so they need to come to the table and figure out how to reform the system and fix it," she said.

The weight of the most recent development quickly cast a shadow over Republicans on Capitol Hill Tuesday afternoon.

Sen. Ron Johnson, a Wisconsin Republican and a key vote, reflected that it might be time for Republicans to move on from repealing and replacing Obamacare "pretty quickly."

"I think we need to move on probably pretty quickly," Johnson said. "I mean, we've been at this. It did not, unfortunately, end in success."

Meanwhile, with some GOP lawmakers' key priorities like boosting funding for the opioid crisis now also stalled, Republicans who were planning to vote for the Senate health care bill are looking at their colleagues bewildered by the latest state of play.

"It was not the best possible bill, but it was the best bill possible," said Sen. Pat Roberts of Kansas. "When you can't even get to a motion to proceed, you're in pretty bad shape."

Asked what it said about the Republican Party's ability to govern, Roberts candidly replied "not much."

Amid the news of McConnell's latest defeat, President Donald Trump told reporters during a luncheon with Afghanistan veterans at the White House that he was "very disappointed" by Senate Republican's inability to pass health care. He added that his new plan is to "let Obamacare fail and then the Democrats are going to come to us."

Even still, Trump said Tuesday that he doesn't think the Republican plan "is dead" but it "may not be as quick as we had hoped but it is going to happen."

CNN's Ted Barrett, Daniella Diaz and Dan Merica contributed to this report.

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Mitch McConnell's Obamacare repeal plan stalled - CNN

Republicans Aren’t Turning on TrumpThey’re Turning on Each Other – The Atlantic

The House is mad at the Senate. The Senate is mad at the House. Various factions in the House and Senate are mad at each other or mad at their leaders.

Republican lawmakers have yet to turn on President Trump in any meaningful way. But theyre starting to turn on each other.

Obamacare Repeal-Only Effort Falters

On Monday, the Republicans tortured health-care effort hit a seemingly permanent snag. But that was only the latest blow; after half a year of consolidated GOP control, not a single major piece of legislation has been enacted. With other priorities similarly stalled, legislators frustration is mounting.

Were in charge, right? We have the House, the Senate, and the White House, one GOP member of Congress told me. Everyones still committed to making progress on big issues, but the more time goes by, the more difficult that becomes. And then the blame game starts.

The House blames the Senate: At a press conference last week, Kevin McCarthy, the majority leader, waved a chart of 226 House-passed bills that the Senate hasnt taken up. We will continue to do our work here, and we hope the Senate continues to do their work as we move forward, McCarthy said pointedly.

Some new members blame their elders. A freshman congressman from Michigan, Paul Mitchell, got a dozen of his fellow newbies to co-sign an op-ed that urges the Senate to get moving, implicitly calling out their senior colleagues for forgetting what they were sent to Washington to do. Failure to do so is a failure to follow the will of our voters, the freshmen wrote in their article published Tuesday.

For its part, the Senate blames the House. A Russia sanctions bill passed the upper chamber with 98 votes a month ago, but it has yet to come to the floor in the House. That prompted Senator Bob Corker, the chairman of the Senate Foreign Relations Committee, to accuse the House of dilly dallying and a ridiculous waste of time.

House leaders say procedural issues and Democrats have tied up the legislation, which the White House opposes. Some members, however, suspect that House leadership is purposely slow-walking the bill to avoid embarrassing the president. A spokesman for House Speaker Paul Ryan denied that was the case, telling me the White Houses position on the issue was not a factor in the bills fate.

Though little heralded, the sanctions bill could mark a moment of truth for White House-congressional relations. If sent to President Trumps desk, the bill would amount to a rebuke of the presidents Russia policy, one he would surely be loath to sign. But given the Russia scandal swirling around Trump, a veto would be explosive. And if the GOP Congress overrode such a veto, the presidents clout would be severely diminished.

Meanwhile, many senators are annoyed with Majority Leader Mitch McConnell for the rushed, secretive process that produced the health-care bill, and for threatening to cancel their August vacation for a potentially fruitless legislative session. And everyone is annoyed with the House Freedom Caucus, which has also demanded that lawmakers spend next month in D.C.

But everyone is always mad at the Freedom Caucus. Divisions between Republican factions are nothing new; nor is friction between the House and Senate. In an oft-repeated fable, a new Republican member of Congress, eager to go after the enemy Democrats, is corrected by an old bull: The Democrats are the opposition, he says. The Senate is the enemy.

Still, some wonder whether the current sniping isnt better directed to Pennsylvania Avenue, where the scandal-mired president creates new headaches with every passing day. Were a big-tent party, so of course there are divisions, the member of Congress told me. But the only thing that could unite the clans is consistent and engaged leadership from the president. And its fair to say weve gotten mixed signals.

A House Republican staffer described the fractious mood on Capitol Hill as Republican-on-Republican violence. As for why lawmakers dont train their ire on the real root of their problems, the staffer shrugged: Maybe its just easier to attack people without 13 million Twitter followers.

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Republicans Aren't Turning on TrumpThey're Turning on Each Other - The Atlantic

How the Republicans Can Get Health Care Passed – Slate Magazine

Sen. Ted Cruz is surrounded by members of the media after viewing the details of a new health care bill on Thursday at the Capitol in Washington.

Alex Wong/Getty Images

To Democrats, the case against the Republican health care bill is simple. The Congressional Budget Office has found, on more than one occasion in assessing more than one version of the proposal, that it will leave far fewer Americans with insurance coverage than under the Obamacare status quo. Republicans have countered that the CBO has been wrong before and that its assessment of the bill is way too harsh, mostly because it greatly overstates the effectiveness of Obamacares individual mandate. Lets assume for the moment that Republicans are right and that the Better Care Reconciliation Act will cover more people than the CBO projects. In that hypothetical world, we would know one thing for certain: The GOP effort to replace Obamacare would also cost far more than the CBO projects.

Consider that Obamacare wound up costing considerably less than the CBO assumed when it was first proposed, mostly because it wound up covering fewer people than expected. Obamacares true believers werent exactly thrilled that the Supreme Court stepped in to make it easier for states to refuse to accept the Obamacare Medicaid expansion or that large numbers of healthy young people chose not to sign up for coverage on the exchanges. Nevertheless, both developments meant the federal government wound up spending fewer dollars subsidizing health coverage than would have been the case otherwise. If you care first and foremost about expanding coverage, this is small comfort.

As a general rule, most Republicans are not primarily motivated by a desire to expand coverage partly because conservatives are more skeptical about the benefits of doing so. The problem with Obamacare is that it made big government bigger. If it turns out the GOPs Obamacare replacement doesnt lead to a steep drop in federal spending, well, what was the point?

This underscores the problem facing Senate Majority Leader Mitch McConnell as he tries to corral 50 votes for the BCRA. Faced with moderate and conservative senators who are inches away from jumping ship, hes being forced to plow the budgetary savings scored by the CBO into sweeteners like extra funding to combat opioid abuse or to help low-income households afford their coverage. Again, if the CBO is underestimating the number of people the BCRA will cover, the savings the BCRA will supposedly bring are already illusory. The more sweeteners McConnell throws in, the more likely it is that the bill will actually increase the deficit.

I see two ways forward for the GOP. The first would be to go all-in on Texas Sen. Ted Cruzs consumer freedom option. The basic idea behind Cruzs proposal is that as long as insurers sell Obamacare-compliant insurance policies, theyd also be free to sell non-Obamacare-compliant policies. McConnell has incorporated a version of Cruzs proposal in the latest version of the BCRA, but its caused more confusion than anything else. The fear is that Cruzs approach would lead younger healthier consumers to flee Obamacare-compliant policies for cheaper non-Obamacare-compliant policies, which would drive premiums on those non-Obamacare-compliant policies through the roof. Cruz is trying to allay the fears of GOP senators by telling them this isnt sothat everyone would be included in a single risk pool. But its not clear how this would work in practice.

Republicans could just accept that Cruzs consumer freedom option would fragment the risk pool. Over time, Obamacare-compliant plans sold on the exchanges would be a safety net for the poor and the sick, whod receive the subsidies they need to afford their (expensive) coverage, while the rich and the healthy would buy unsubsidized non-Obamacare-compliant plans. Theres only one problem here, which is that the subsidies for the poor and the sick on the exchanges would have to be very large to ensure their coverage is affordable. The BCRAs cuts to cost-sharing subsidies would have to be reversed. Short of that, Cruzs safety net wouldnt be much of a safety net at all. Over the long run, this safety net approach might save money, especially if the unsubsidized market succeeds in lowering costs and winning over a growing share of consumers. But its also possible this approach will cost just as much money, if not more. Either way, a deregulatory approach wedded to a reasonably strong safety net could bridge the gap between GOP conservatives and moderates.

The second way forward would be to give up on uniting Senate Republicans and instead try to woo Senate Democrats.

The second way forward would be to give up on uniting Senate Republicans to pass a bill through reconciliation and instead try to woo enough Senate Democrats to win a filibuster-proof majority. Over the past few days, South Carolina Sen. Lindsey Graham and Louisiana Sen. Bill Cassidy have been touting their GrahamCassidy amendment, which would preserve almost all of Obamacares taxes and then block grant the money to the 50 states to expand insurance coverage and otherwise shore up their insurance markets. In theory, liberal states could push further in the direction of single-payer while conservative states could embrace more market-friendly approaches.

Its hard to imagine that GrahamCassidy would pass muster under the rules of budget reconciliation, as it does much more than just tweak how the federal government spends money. Moreover, GrahamCassidy is exceedingly vague in its current form, and its not at all clear what it would do to federal Medicaid spending, which is one of the most contentious aspects of the current health policy debate. It is, however, a politically palatable approach that dovetails with the conservative fondness for federalism. And its vagueness on Medicaid might help peel off a handful of red-state Democrats. For example, Republicans could adopt the blended rate approach to Medicaid spending first proposed by the Obama White Housethis would be less effective at reining in federal Medicaid spending than the per-capita caps proposed in the BCRA, but it would also be less polarizing.

Honestly, neither of these ways forward are all that promising. It just so happens that McConnell is running out of options.

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How the Republicans Can Get Health Care Passed - Slate Magazine

Why Can’t Republicans Get Anything Done? – National Review

Editors Note: This piece originally appeared in the July 31, 2017 issue of National Review.

Republicans dont have many legislative wins to show for their control of the House, Senate, and White House. They have, it is true, confirmed Justice Neil Gorsuch to the Supreme Court. His confirmation, along with the thought of how Hillary Clinton would have used executive power, is enough to make a lot of conservatives happy about voting for President Trump last fall.

But Republicans hoped to have enacted major conservative changes in government policy by now. Congressional Republicans have complained over the years that their grassroots supporters have exaggerated expectations of what they can achieve. This time, though, the congressmen themselves have been disappointed. After the election, they too believed that Congress would quickly repeal Obamacare and then move ahead on tax reform.

That didnt happen. Action on health care has been repeatedly delayed, and the current betting in Washington, D.C., is that no major change to Obamacare will pass. Congress has barely begun to take up taxes. Legislation on infrastructure, which the president has consistently described as a priority, does not exist.

Republicans have been productive, at least, in coming up with competing explanations for their failure to change the laws. Many Republicans, especially those outside the capital and those who strongly support Trump, blame the congressional party for being weak and disloyal to the president. (A smaller number of strong Trump supporters insist that a few deregulatory moves by Congress, the Gorsuch confirmation, and Trumps executive actions, especially his planned withdrawal from the Paris climate-change accord, mean that everything is going well.) Often this criticism is couched as a defense of the president: If hes not signing laws, its the fault of Congress for not sending them for his signature.

Those Republicans who are more sympathetic to Speaker of the House Paul Ryan than to Trump most Republicans in D.C., in other words tend to blame Trump. In particular, they blame his tweets. When one of them becomes a big news story, it drowns out any other Republican message. Many Republicans in Congress complain that this White House is better at providing drama than direction.

Speaker Ryan has not himself pointed a finger at Trump: not in public, and not, to my knowledge, in private, either. He has noted that congressional Republicans spent ten years in opposition, first to Harry Reid and Nancy Pelosi in the last two years of the George W. Bush presidency, then to President Obama. Many members of his conference therefore have no experience of passing federal laws. The partys stumbles, he suggests, are part of its transition to being a governing party.

Yet Ryans own ambitious schedule for 2017 underestimated the difficulties. Congressional Republicans arent just out of practice at governing: They face a fundamentally new situation. From 2001 to 2007, they were very largely pursuing the agenda set by a Republican White House. The last time they were setting an agenda themselves, as they are now doing by necessity, was during the Clinton administration. They have not set an agenda that they had a responsibility to turn into law with the assistance of a Republican president since before the Great Depression.

At one tricky moment in the Houses consideration of health care, Trump tweeted a few attacks on members of the House Freedom Caucus. The controversy that ensued might obscure the fact that he has generally taken a very hands-off approach to the Congress. He has said that congressional Republicans, not he, decided to tackle health care first. Ryan has pushed for tax reform to include a border-adjusted tax to offset some of the revenue losses other portions of the reform will cause. Trumps aides have not taken a unified line on the matter, pro or con.

Trumps management style, unusual in a president, does not require public unity from his subordinates. Budget director Mick Mulvaney and Treasury secretary Steve Mnuchin have taken opposing views in interviews about how much revenue a reformed tax code should raise. Mulvaney has also said that the administrations budget does not reflect its policy proposals which left some observers a bit flummoxed, since putting its proposals into budgetary form has historically been considered the point of the document.

The president does not engage or seem familiar with the details of policy, either. Many jobs in his administration remain unfilled, in many cases with no nominees yet submitted. For these and other reasons, his administration has provided his congressional allies with much less guidance than is typical.

Usually, a presidential candidate runs on a fairly detailed list of proposals and communicates to his party, the public, and relevant interest groups that he intends to achieve something close to its top items. That list reflects, adjusts, and solidifies the partys existing consensus. When the candidate comes from the party that controls Congress but not the White House, the list includes many of the priorities that the incumbent president beat back. If the candidate wins, his party defers to his list.

In the run-up to 2016, congressional Republicans decided to rely even more than before on their presidential nominees policy preferences. Senate Republicans made a conscious decision not to put forward a comprehensive agenda, so as to leave the nominee free to develop his own plans. Ryan tried to supply some content, devising a list of policies that he called A Better Way. But the lack of Senate buy-in, and the expectation that the presidential nominee would have a more authoritative platform, limited the seriousness with which House Republicans took it.

When Trump won, though, congressional Republicans could not defer to his proposals, even if they had been inclined to do so for a man many of them regarded as an interloper, because his campaign was so light on policy. His health plan consisted of a few pages of boilerplate, much of it dated. (The plan endorsed health savings accounts, for example, without taking any notice of the fact that President Bush had already gotten them enacted.) His own administration has not drawn on those pages. He ran on one tax plan during the primaries and another during the general election; reportedly instructed his White House staff to come up with a new plan that mimicked a New York Times op-ed he had read; and then oversaw the release of a plan that could fit on a 35 card.

During the last few decades our political system has come to rely ever more heavily on strong presidential leadership, and a shift away from this model of an overbearing executive may be salutary. It has, however, also been abrupt. Congressional Republicans have been left scrambling to figure out their own role.

Perhaps theyre blaming his tweets for their travails as a form of displaced anger over their new obligations. The proposition that the tweets are undermining congressional work does not really hold up. Nobody in Congress is going to vote against a tax bill because of something Trump tweeted about Mika Brzezinski. And its not as though the president would make a compelling case for Republican health-care legislation whether to the public or to holdout senators if only he could keep himself from using social media to boast and settle scores.

Whether anyone could make a compelling case for that legislation is a contested question. The health-care bill is hated by many and loved by almost no one, in part because it does not reflect any coherent understanding of what our health policy should be. That may be the kind of legislation one should expect when neither the Congress nor the president has thought through a policy agenda. The health debate has shown that moderate Republicans, especially, never worked out the implications of the partys loud opposition to Obamacare, which they joined with gusto. If they had, they might have realized that it was impossible to repeal Obamacare while also refusing to modify in any way its protections for people with preexisting conditions.

The same lack of forethought is already undermining tax reform. Republicans think they have a clear idea of tax reform because they share certain goals, such as lower tax rates and better treatment of investment. But those goals can be pursued in many different ways. How large should tax cuts be? Is it more important to cut corporate or individual tax rates? Or would the economy be better served by changing the definition of the corporate tax base? Should concerns about the trade deficit affect our tax policy? How should Trumps promises about child care be integrated with tax reform, if they should be at all?

Passing tax legislation will not require starting out with a consensus on all these questions, let alone on the more detailed ones that have to be answered after them. But Republican lawmakers are quite far away from a consensus on them, and the vast majority of individual congressmen do not yet have a strong sense of their own answers.

It is a mistake, then, to ask why Trump, Ryan, and the rest are not making more rapid progress on the Republican agenda. That question assumes that Republicans have a clear sense of what they want and are confronting an obstacle to the realization of their desires: that theyre not getting their way because [blank], which could be filled in with Trump is being a maniac on Twitter or Ryan is a weakling. But the problem is more basic. The main reason theyre not doing much is that they havent figured out what they want to do.

Ramesh Ponnuru is a senior editor of National Review.

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Why Can't Republicans Get Anything Done? - National Review