With Obamacare vote, House Republicans free to turn to tax reform

May 5, 2017

Washington, May 5: The Republican-controlled U.S. House of Representatives plans to turn to tax reform in earnest, after concluding a lengthy healthcare debate this week with a vote to repeal and replace Obamacare.

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But even as Republicans predicted that tax reform would succeed before year-end, lawmakers encountered new uncertainties about what a final tax package might contain, as well as doubts about whether Republicans will be able to enact reforms without Democratic help.

President Donald Trump and Republicans in Congress have pledged to complete the biggest tax reform since 1986, when President Ronald Reagan was in office, before the end of 2017. But they face an uphill battle, mainly over policy differences within their own ranks.

Thursday's 217-213 House vote on healthcare legislation raised confidence in the Republican-controlled chamber's ability to move major legislation after two earlier pushes ended in failure.

But to move forward on tax reform, the House, Senate and Trump administration must agree on where to set tax rates, how to pay for cuts and whether the final package should add to the deficit or pay for itself, all areas where common ground may be hard to find.

A plan to enact reforms without Democratic support will also require Republicans to pass a 2018 budget authorizing the parliamentary process known as reconciliation. But a new budget agreement poses a daunting task given Republican opposition to Trump demands for deep domestic spending cuts.

"That may prove to be one, if not the most difficult votes of the tax reform process," Jonathan Traub, a managing principal at the consulting firm Deloitte Tax LLP.

Meanwhile, the need to reach agreement between the House, Senate and White House will likely delay introduction of a tax reform bill, which had been expected in early June.

But Republicans say it will ultimately make it easier to enact reforms before the end of the year.

The House Ways and Means Committee, which will unveil the initial tax bill, is still aiming for a revenue-neutral package that raises $2.4 trillion for tax cuts through a new border adjustment tax and elimination of business deductions for net interest payments, both controversial measures.

Panel chairman Kevin Brady told reporters that revenue neutrality is necessary to ensure bold, permanent changes to tax policy that can drive economic growth.

"That's the argument and the case we're going to make to the Senate and the Trump administration," he said.

But Representative Mark Meadows, who chairs the conservative Freedom Caucus that helped block Trump's first healthcare bill, voiced opposition to a revenue neutral approach.

"If it's revenue neutral, you're not really lowering taxes. You're shifting the burden," Meadows told reporters.

The Trump tax plan unveiled last week calls for steep tax cuts financed by government revenues that officials say will result from higher growth. Some fear the plan could add trillions of dollars to the deficit if growth does not materialize.

Meadows said tax cuts should be offset by cuts to entitlement programs including Social Security and Medicare, which Trump has promised not to touch.

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Agencies
March 15,2020

Tehran, Mar 15: Two hundred and thirty-four Indians stranded in coronavirus-hit Iran have arrived in India, External Affairs Minister S Jaishankar said on Sunday.

The batch comprises 131 students and 103 pilgrims, he said.

“234 Indians stranded in Iran have arrived in India; including 131 students and 103 pilgrims. Thank you Ambassador Dhamu Gaddam and @India_in_Iran team for your efforts. Thank Iranian authorities,” Jaishankar tweeted.

The third batch of Indians from Iran arrived early Sunday. A second batch of 44 Indian pilgrims had arrived from Iran on Friday.

Iran is one of the worst-affected countries by the coronavirus outbreak and the government has been working on plans to bring back Indians stranded there.

The first batch of 58 Indian pilgrims were brought back from Iran on Tuesday.

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News Network
April 29,2020

Apr 29: US President Donald Trump doubled down on China for failing to tame the coronavirus at its very origin, saying it has led to 184 countries "going through hell", as several American lawmakers demanded steps to reduce dependence on Beijing for manufacturing and minerals.

Trump has been publicly blaming China for the global spread of the "invisible enemy" and launched an investigation against it. He has also indicated that the US may be looking at "a lot more money" in damages from China than the USD 140 billion being sought by Germany from Beijing for the pandemic.

Leaders of the US, the UK and Germany believe that the deaths and the destruction of the global economy could have been avoided, had China shared the information about the virus in its early phases.

"It's in 184 countries, as you hear me say often. It's hard to believe. It's inconceivable," Trump told reporters at White House Tuesday. "It should have been stopped at the source, which was China. It should have been stopped very much at the source, but it wasn't. And now we have 184 countries going through hell.”

The virus, which originated in China's Wuhan city in mid-November, has killed more than two lakh people and infected over three million globally. The largest number of them are in the US: nearly 59,000 deaths and over one million infections.

The massive outbreak in the US has put Trump under increasing pressure from American lawmakers to decrease US dependence on Beijing and they have also sought compensation from China.

Senator Ted Cruz and his colleagues have urged Defence Secretary Mark Esper and Interior Secretary David Bernhardt to support the development of a fully domestic supply chain of rare earths and other minerals that are critical for manufacturing defence technologies and supporting national security.

“It is clear that our dependence on China for vital rare earths threatens our US manufacturing and defence-industrial base. As the October 2018 Defence Industrial Base Report states: ‘China represents a significant and growing risk to the supply of materials deemed strategic and critical to US national security.' [...] Ensuring a US supply of domestically sourced rare earths will reduce our vulnerability to supply disruptions that poses a grave risk to our military readiness," the Senators wrote.

The US is 100 percent import-dependent for rare earths as well as 13 other metals and minerals on the US Government Critical Minerals List and more than 75 percent import reliant for an additional 10 minerals.

Congressman Brian Mast on Tuesday introduced a legislation to hold China accountable for its "coronavirus deception". The resolution would empower the US to withhold payments on debts owed to China equal to the costs incurred by the US in response to COVID-19.

“China's total lack of transparency and mishandling of the coronavirus outbreak has cost tens of thousands of lives, millions of jobs and left untold economic destruction. Congress must hold China accountable for their cover-up and force them to pay back the taxpayer dollars that have been spent as a result,” Mast said.

Cruz, member of the Senate Foreign Relations Committee, announced his intention to introduce a legislation to cut off Hollywood studios from assistance they receive from the Department of Defence if those studios censor their films for screening in China.

This legislation is part of Sen. Cruz's comprehensive push to combat China's growing influence over what Americans see and hear, which includes legislation targeting information warfare from the Chinese Communist Party across higher education, sports, films, radio broadcasts, and more.

Indian-American Congressman Ami Bera and Congressman Ted S. Yoho, both members of the House Foreign Affairs Committee, will lead a bipartisan virtual Special Order to highlight the importance of US global leadership during the COVID-19 pandemic.

“If we abdicate our place as a leader in global health, there is another country eager to take the reins. China has not been subtle in asserting itself on global health issues, and often not for the benefit of other nations. China's recent coronavirus debacle should be evidence enough that their communist regime cannot be trusted to lead with accountability, transparency, or pragmatism, traits that are essential when fighting widespread disease,” Yoho said.

“As for how China would fare as a global health leader, look no further than the disastrous initial response by the WHO to coronavirus, one that was clearly influenced by Beijing. Information was slow-walked, warnings from nations like Taiwan were ignored at crucial turning points, and cooperation with outside health experts was spurned until it was too late. And it has resulted in the largest public health disaster the world has seen in over a century,” he said.

In an interview to Fox News, Senator Marco Rubio alleged that if China had acted when those warnings were being made, instead of silencing the people that were talking about it, they could have limited the spread.

“So there was no doubt that that was a deliberate decision made on their part. The one way to hold them accountable is to do what we should be doing anyway. That is moving the means of production to become less and less dependent upon them. What you're going to see after this pandemic is that more and more countries are going to prioritize their healthcare manufacturing capabilities and other industries,” he said.

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News Network
June 26,2020

Washington, Jun 26: The United States reported more than 39,000 new coronavirus cases on Thursday, its highest-ever single-day count as the government relaxed restrictions and is downplaying the threat of the deadly virus.

According to the Washington Post, experts believe there is a troubling lack of consistent, unified messaging from President Donald Trump and Vice President Mike Pence. They have downplayed the danger and denigrated effective disease defences such as mask-wearing, testing, and social distancing.

Churches, beaches, and bars are filling up with people and so are hospital beds, the report said.

The counties home to Dallas, Phoenix, and Tampa all reported record-high averages on at least 15 straight days in June.

The hardest-hit states are California, Texas, Florida and those that thought they had the virus under control, like Utah and Oregon.

"I think the politicians are in denial," said Kami Kim, director of the Division of Infectious Disease and International Medicine at the University of South Florida.

The chief of the Division of Pediatric Infectious Diseases at the University of Utah Health, Andrew T. Pavia, is of the view that the push to reopen quickly even as cases climb sends a dangerous and inaccurate message.

"On the one hand, you get messages from politicians and the business community that we have to go, go, go and open up," he said. "On the other hand, you're seeing epidemiological indicators that we still have to be very careful."

"It's cognitive dissonance," he added.

The Trump administration has tried to downplay the rising number. Pence called concerns about another surge of infections "overblown," the product of media "fearmongering."

Some governors have followed the administration's lead, blaming rising caseloads on more testing.

Testifying before a congressional committee this week, Anthony S. Fauci, the nation's top infectious-diseases expert, said the new cases were "a disturbing surge" spurred by community transmission rather than testing.

"That's something I'm really quite concerned about," Fauci said. "A couple of days ago, there were 30,000 new infections. That's very disturbing to me."

Several states like Arizona, Arkansas, the Carolinas, Mississippi, Tennessee, Texas and Utah have recently reported new highs in the number of coronavirus patients hospitalized.

"We're seeing a 40 per cent increase in the last two weeks in hospitalizations," said Dallas County Judge Clay Jenkins (D), the jurisdiction's top elected official. "We're by far at our record numbers, and we're at record numbers in north Texas. Houston is at a record, the state is at a record." The Texas Medical Center in Houston, a massive medical complex, reported Thursday that 100 per cent of the beds in its intensive care unit are occupied.

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