Trump’s Changes Tax Code Will Be Slower Than Expected, Democrats Rally To Protect Obamacare
January 04, 2017
Changes to the federal tax code during the 115th Congress, a key part of President-elect Donald Trump’s early agenda, are anticipated to be slower-than-anticipated; President Obama is meeting with Congressional Democrats on Wednesday to discuss protecting the Affordable Care Act; Consumer prices in the Eurozone rose at the fastest annual pace in more than three years.
- Changes to the federal tax code during the 115th Congress, a key part of President-elect Donald Trump’s early agenda, are anticipated to be slower-than-anticipated, as other procedural and legislative hurdles may delay any fiscal reforms. Notably, the Senate must confirm President-elect Trump’s cabinet nominees at the same time as Democrats prepare to block Republican efforts to repeal and replace the Affordable Care Act. Senate Finance Committee Chairman Orrin Hatch (R-UT) said on Tuesday that meaningful reforms could take considerable time in pursuing measures that will be approved by the future administration. House Ways and Means Committee Chairman Kevin Brady (R-TX) said that there is only 20% divergence from the tax plans of Congressional Republicans and those of Mr. Trump and that notable areas of commonality include reforms to import and export tariffs. The non-partisan Tax Policy Center has estimated that GOP tax proposals could cost $3 trillion over a decade. [Bloomberg]
- President Obama is meeting with Congressional Democrats on Wednesday to discuss protecting the Affordable Care Act, a signature accomplishment of his administration, amid Republican plans to swiftly dismantle the bill. Democratic leaders Chuck Schumer (D-NY) and Nancy Pelosi (D-CA) are set to hold a news conference following the meeting. Vice President-elect Mike Pence, meanwhile, will join with Congressional Republicans on Wednesday to discuss legislative priorities that include repealing the ACA, setting the stage for what could be a significant political battle at the onset of the Trump administration. Republicans have said that it could take years following the repeal of the ACA to develop a suitable replacement, an approach toward which President Obama has expressed deep concern as it may jeopardize health insurance access for millions of Americans. Senate Budget Committee Chairman Mike Enzi (R-WY) introduced a resolution on Tuesday to establish a special process that would allow an ACA repeal to pass with just 50 votes, which would eliminate both potential for a Democratic filibuster and need for Democratic support. [The Hill]
Economic Indicators & News
- Consumer prices in the Eurozone rose at the fastest annual pace in more than three years, as the EU’s statistics agency announced that inflation in the monetary was 1.1% higher in December of the prior year period. The pickup in overall prices was largely due to moderate recovery in the energy sector following OPEC and non-OPEC agreements to limit 2017 oil production, contributing to a 2.5% gain in the component following a 1.1% decline in November. Inflation rose a sequential 0.6% from the previous month. Core inflation, meanwhile, edged up a weaker 0.9% in December, only marginally above the 0.8% rate of growth in June 2014 recorded at the time the European Central Bank embarked on its quantitative easing program. The broader economic outlook for the Eurozone is anticipated to remain unstable through 2017 on uncertainty around critical elections in the Netherlands, France, and Germany. [WSJ]