As Republicans cope with their recent realization that repealing and replacing the Affordable Care Act (ACA) is easier said than done they move onward to their next big ticket item, which is Tax reform. President Donald Trump states, “I would say that we will probably start going very, very strongly for the big tax cuts and tax reform” (NPR). However, House Speaker Paul Ryan who is Republican did state that since the repeal and replacement of the ACA failed tax reform does become a bit difficult but he assured that it does not make tax reform impossible. Likewise, the challenges for Taxation reform are both partisan and bureaucratic in nature. Furthermore, because of the recent failure Republicans must deal with their devastating lost and “squabbling factions that torpedoed the Obamacare repeal and aren’t likely to settle down anytime soon” (NPR).
Many scholars in Political Science and Government have voiced their concerns that President Trump will meet a similar stalemate with the issue of Tax reform since he was unable to get the ACA repealed and replaced. One such scholar, William Gale, senior fellow at the Brookings Institution and co-director of the Tax Policy Center states that if Trump was unable to garner support for the repeal and replacement of health care, then he is most likely going to be revisiting the same outcome with taxation reform. Taxation is another juggernaut issue that is either as tough or tougher than health care reform because of all the significant interest groups that tend to swarm around you when you deal with their concern. One of the most prominent reasons for the failure of the health care repeal and replacement was that many nonpartisan groups predicted that by repealing the ACA the republicans would have left approximately 24 million more Americans uninsured after a decade and would have increased insurance expenses for individuals in their 50s and 60s. The repeal and replacement bill did not fully roll back the ACA prior to the construction of a replacement. Additionally, many in the White house have been positively stating that the repeal and replacement catastrophe won’t spread into other parts of the President’s Agenda. However, one of the major reasons for tackling the health care issue first was because of the procedural reasons that would be fixed. The Republican’s game plan for both healthcare and taxation reform is the legislative approach known as “budget reconciliation”, which ultimately would help the Republicans circumvent Democratic filibusters.
President Trump’s proposal that he introduced during his campaign was found to be increasing the deficit by (x) trillion dollars by both a moderate and conservative think tank. Likewise, that same plan basically gave the biggest savings to that of the richest taxpayers. This is because the top 1 percent of earners would see roughly a 10-20 percent increase in their incomes. While most moderate -income families and individuals would see a modest 1-10 percent boost in their income.