By Siobhan Hughes, Kristina Peterson and Richard Rubin
WASHINGTON -- Several Republican senators expressed last-minute
doubts about the tax-overhaul plan in Congress, possibly an attempt
to strengthen their negotiating positions before a compromise plan
set to be released on Friday and final votes planned for early next
week.
The presence of the wavering senators, plus concerns about the
health of two others, underscored the fragile position of
Republicans as they try to pass a sweeping $1.4 trillion overhaul
of the tax code through a Congress with narrow majorities and no
Democratic support expected.
On Thursday, Sen. Marco Rubio (R., Fla.) said he would vote
against the bill if the final measure doesn't expand child tax
credits for low-income households beyond what is currently
envisioned. Sen. Mike Lee (R., Utah), who has also wanted a more
generous child tax credit, is also undecided on the tax bill in its
current form, a spokesman said.
Senate Republicans passed their tax bill 51-49 earlier this
month, leaving them little margin on the final version that will
emerge from a House-Senate conference committee. Mr. Rubio and Mr.
Lee both voted for the bill that passed the Senate.
Others say they are wavering. Sen. Bob Corker (R., Tenn.), the
lone GOP no vote earlier this month, says he is undecided on the
final version. Sens. Susan Collins (R., Maine) and Jeff Flake (R.,
Ariz.) also say they are waiting to read the final version.
Further complicating matters, Sens. John McCain (R., Ariz.) and
Thad Cochran (R., Miss.) have had health issues and missed votes
this week. Party leaders are counting on their votes next week.
Mr. Rubio objects to some of the priorities Republican leaders
have set in compromise talks between the House and Senate. For
example, they decided to set the corporate tax rate at 21% rather
than 20%, but didn't use those extra funds to expand the child
credit. They also lowered the top individual tax rate to 37%, below
the top rates set in House and Senate plans.
"If you've found the money to lower the top rate...you can't
find at least a little bit to at least somewhat increase the
refundable portion of it?" Mr. Rubio told reporters on Thursday. "I
can't in good conscience support it unless we are able to increase
the refundable portion of it, and there's ways to do it."
In a series of tweets, he defended his push. "Tax negotiators
didn't have much trouble finding a way to lower the top tax bracket
and to start the corporate tax cut a year early," he said. "Adding
at least a few hundred $'s in refundable cuts for working families
who seem to always be forgotten isn't hard to do either."
Lawmakers on the conference committee are aiming to sign an
agreement Friday morning, unveil it later Friday and then vote on
that bill next week. President Donald Trump would then be able sign
it into law and have most of it take effect in January.
Senate Finance Committee Chairman Orrin Hatch (R., Utah) told
reporters he was concerned about Mr. Rubio's stance but hadn't
spoken to him.
"Sen. Rubio would like to see us do a little more, and we're
trying to work with him to get there," said Sen. John Cornyn (R.,
Texas), a member of the tax negotiating team. "We're trying to
figure out what we can do. I can't give the current state of play
on that since it's in flux, but the goal is to give a
$2,000-per-child tax credit, with a significant portion of that to
be refundable."
Under current law, the $1,000 credit is refundable, which means
taxpayers get money back even if they don't pay income taxes. But
the current credit is limited for some very low-income families.
The Senate plan would double the credit to $2,000 per child and
make $1,100 of it refundable. Mr. Rubio wants to increase that
$1,100 and change the income levels so more low-income families
qualify for the whole credit.
"I think we're making progress," said Sen. Tim Scott (R., S.C.),
a conference committee member who also supports a larger child
credit. He added that having a larger amount refundable would be
his definition of progress.
Mr. Scott didn't say how lawmakers would offset any fiscal cost.
One idea is to make the credit available to fewer people than
planned.
The Senate bill sets the child tax credit to start expiring for
households making $500,000; under current law, it begins phasing
out at $75,000 for individuals and $110,000 for married couples.
Making those thresholds closer to current law could pay for some of
the change Mr. Rubio seeks.
Messrs. Rubio and Lee pushed an amendment during the Senate's
tax debate that would have made more of the child tax credit
refundable and paid for it by setting the corporate tax rate at
20.94% instead of the 20% the Senate passed. That attempt failed on
a 29-71 vote.
Asked about Mr. Rubio's position, White House Press Secretary
Sarah Huckabee Sanders said the administration was "extremely
excited about the progress we've already made to double the tax
credit" but said it would continue working with the senator.
Asked whether there was "more room to move" for the White House
on the child tax credit, Ms. Sanders said, "Right now, we're going
to focus on letting some of the Senate move forward in the
progression of their conversations."
"Sen. Rubio will get there," Mr. Trump said Thursday when asked
about his former campaign rival. "We will get there. It will be in
a very short period of time."
Because of the narrow margin of support for the bill, the
ultimate timing of the tax vote may also depend on the health of
Mr. McCain and Mr. Cochran.
An original plan had called for the Senate to vote on Monday,
with the House following on Tuesday. Now, the sequence of those
votes is up in the air.
Mr. McCain has been receiving treatment at Walter Reed Medical
Center related to side effects from his cancer treatment, according
to his office. "He's just resting up," Mr. Cornyn said, adding that
Mr. McCain would be at the vote next week. An aide for Mr. Cochran
said he is expected to vote for the tax plan in the Senate next
week.
Republicans are mindful of these and other factors in scheduling
the vote. "It's all about timing and managing absences in the
Senate," House Speaker Paul Ryan (R., Wis.) told reporters about
which chamber would vote first. The House, he said, is "basically
being flexible."
Republican leaders are working to build in as much of a cushion
as possible to protect against the risk of any lost votes. On
Wednesday, Senate Majority Leader Mitch McConnell (R., Ky.) sought
to bring Mr. Corker on board, agreeing to make some changes the
Tennessee senator sought, even though Mr. Corker said his concerns
about tax bill adding to the federal budget deficit still haven't
been alleviated. Mr. Corker declined to specify the changes.
Vice President Mike Pence was supposed to leave for the Mideast
Saturday, but will delay departing until Tuesday. He breaks tied
Senate votes.
Republicans have long planned to finish the tax bill in
December, but they have extra incentive now after Tuesday's Alabama
election. Sen.-elect Doug Jones (D., Ala.) won't be seated until
after Christmas because the results aren't certified. That will
make the party split in the chamber 51-49, and then any two GOP
senators could make the difference.
Democrats have called on Republicans to wait on the tax vote
until Mr. Jones is seated. Republicans have refused.
Republicans also want to pass the tax bill in the early part of
next week so they have time to work on separate legislation to keep
the government funded beyond next Friday, when a temporary spending
measure expires.
Write to Siobhan Hughes at siobhan.hughes@wsj.com, Kristina
Peterson at kristina.peterson@wsj.com and Richard Rubin at
richard.rubin@wsj.com
(END) Dow Jones Newswires
December 14, 2017 19:19 ET (00:19 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.