Backlash fears mar Trump win

Tax overhaul passed but only 1 in 3 voters backed bill in recent days, polls show

WASHINGTON - A triumphant US President Donald Trump and jubilant fellow Republicans celebrated the passage of their $1.5 trillion tax overhaul on Wednesday as a "historic victory for the American people". But people in the United States will need some convincing.

As Trump and GOP lawmakers gathered at the White House to cheer their first major legislative achievement and the biggest tax changes in a generation, some Republicans warned that the party could face a painful political backlash against an overhaul that offers corporations and wealthy taxpayers the biggest benefits and was projected to trigger the loss of healthcare coverage for millions of US citizens.

There was no hint of anxiety at the White House, though, as the president and congressional Republicans reveled in a much-needed win at the end of a year marked by GOP infighting and political stumbles.

"We are making America great again," Trump said, personally thanking his "little team" of Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan, before lawmakers lavished praise upon a president they have often openly criticized.

The tax package provides a deep cut in the corporate rate, from 35 percent to 21 percent. On the individual side, about 80 percent of US households will get tax cuts next year, while about 5 percent will pay more, according to the nonpartisan Tax Policy Center.

People who make less than $25,000 will see an average tax cut of $60; those who earn between $49,000 and $86,000 will get about $900, and those in the top 1 percent of income earning more than $733,000 will receive around $51,000 in tax savings, the policy center said.

The White House said the legislation will boost investments by giving companies more favorable tax rates, which will result in more hiring as companies grow and require more manpower.

But experts say that will not necessarily help the GOP in the lead up to the 2018 congressional elections, while according to recent polls, only about 1 in 3 voters have supported the legislation in recent days.

"The bill shifts the bulk of tax savings to the ultrawealthy, leaving little for the middle class. It adds at least 1 trillion dollars to the national debt and likely will not produce much in the way of economic growth," said Darrell West, a senior fellow with the Brookings Institution.

Gregory R. Valliere, chief strategist at Horizon Investments, said that if the economy is solid next November - with unemployment below 4 percent and GDP (gross domestic product) around 3 percent - this could help Republicans in the midterm elections.

But Trump is so deeply unpopular that the Republicans have to expect steep losses in the House, maybe close to the 24 seats the Democrats need to recapture the House. And with only a 51-49 majority in the Senate, the Republicans could lose control there also, he said.

Dan Mahaffee, senior vice-president and director of policy at the Center for the Study of Congress and the Presidency, said that the bill gives the GOP an accomplishment in 2017, which was much needed after the party's earlier legislative efforts were stymied.

"The GOP donor base will be thrilled by reduction in corporate and individual rates, but the public is a little more skeptical given the temporary nature of the cuts," Mahaffee said.

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(China Daily 12/22/2017 page12)