Suddenly, Both Obamacare Repeal And Trump Tax Reform Are Dead

Tyler Durden's picture

It was a one-two knockout punch for anyone still holding out hope that Trump's domestic economic policies will take place in the near, or not even so near, future.

First, Rep. Patrick McHenry, a member of House Republican leadership, said on Wednesday afternoon that conservatives' proposals to reach a compromise on healthcare are a "bridge too far" to win support from colleagues.  McHenry, the chief deputy whip, told reporters that calls from the conservative House Freedom Caucus to allow states to apply for waivers to repeal ObamaCare protections for people with pre-existing conditions are a "bridge too far for our members" and can't get enough votes to pass.

The comments come after a late-night meeting among House GOP groups on Tuesday fell flat, and lawmakers appear to be heading home at the end of the week for a recess without any tangible progress toward a deal to revive their healthcare bill.

McHenry said lawmakers need a "cooling off period" over the two-week break. "We need people to stop, take a deep breath, and think through the way to yes," he said.

As McClathy sums it up, "conservative interest groups are on the warpath, charging the new ideas don’t go far enough to destroy the 7-year-old Affordable Care Act. On the other end of the GOP political divide, moderate House Republicans are withholding support for the new White House-backed changes. They fear the revisions would jeopardize the health law’s requirement that individual insurers cover people with pre-existing medical conditions."

Conservative activists Wednesday blamed at least five members of the centrist House Tuesday Group for the impasse. Conservatives complained the moderates were not eager to allow states to opt out of two popular ACA provisions: One would require all plans to cover 10 “essential health benefits” and another would bar insurers from charging sick people more for coverage than healthy people. Although both rules increase the cost of individual insurance, patient advocates say they ensure that coverage is standardized, thorough and accessible to those who need it.

 

Michael Needham, chief executive officer of Heritage Action, a leading conservative group, was sharply critical Wednesday of GOP centrists Reps. David Joyce of Ohio, Leonard Lance of New Jersey and Patrick Meehan of Pennsylvania. They “were standing in the way of legislative compromise that is being pushed by the White House and which would get overwhelming support in the Republican conference.”

 

“They’re opposed because they don’t want to repeal Obamacare,” Needham told reporters on a conference call. He said lawmakers should begin their congressional recess, scheduled to start Thursday afternoon, and vote on the legislation when they return.

 

The conservative Club for Growth piled on, accusing Republican moderates of torpedoing a potential deal. “The left wing among House Republicans doesn’t want to compromise or keep their pledge to voters to repeal Obamacare,” said Club for Growth President David McIntosh.

 

Moderates, in turn, blamed conservatives for constantly altering their demands. “Repeal and replace,” said Lance. “I have never campaigned on a mere repeal, ever.”

 

Rep. Chris Collins, R-N.Y., one of President Donald Trump’s closest House allies, said Heritage “is about one thing: raising money. They raise money on controversy. The more controversy, they blast out an email, they gin up their supporters. They cash the checks and they move on.

And so on, as the blame game has resumed. In other words, despite the White House's stated desire to get a vote off by Friday, Obamacare repeal is dead for the foreseeable future.

* * *

And then it weas Ryan's turn: the House Speaker, also on Wednesday afternoon, said that tax reform will take longer to accomplish than repealing and replacing Obamacare would, saying Congress and the White House were initially closer to agreement on healthcare legislation than on tax policy.

"The House has a (tax reform) plan but the Senate doesn't quite have one yet. They're working on one. The White House hasn't nailed it down," Ryan told an audience in Washington.

"So even the three entities aren't on the same page yet on tax reform," he added.

Translation: both healthcare and tax reform are now indefinitely dead, which means that a suddenly pivoting Trump, who earlier today said he had "changed his mind" on Syria, may have no choice but to begin war with Assad to distract from everything else that is going on in the US.

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toady's picture

Where's Tom "the hammer" Delay when you need him?

American Psycho's picture

tomorrow DOW 21k, because why the hell not.

Luc X. Ifer's picture

Trump bowed to the shadow emperor, so long it lasted, same as Obozo

WernerHeisenberg's picture

MAGA - Make America Grovel Again!

hedgeless_horseman's picture

 

Speaking of tax reform...

http://www.zerohedge.com/news/2017-03-21/marfa-2017-project-mayhem-homew...

We are considering an additional aspect of the symposium.  It is a work shop to discuss and develop a year-long Project Mayhem homework assignment.  We are looking for hip tax lawyers and edgy tax accountants that want to come to Marfa and hang out with us and all of the beautiful, single, and very lonely cowgirls looking for tax advice.  If you are an expert in IRS withholding, grass-roots campaigning, or floating bills to legislatures, then we need your help! To paraphrase Dave Ramsey:

If Americans could only feel the pain of paying taxes, counting out the cash to the tax collector each and every paycheck, instead of the invisible hand withholding electronic funds, then there would soon be a revolution.

Please contact me if you are interested in disintermediating the taxman, and helping with this aspect of the symposium:  hedgeless@protonmail.ch

Or, feel free to wait, do nothing but complain, and rely on Big Government and Donald Trump to fix things for you.

Perimetr's picture

Trump has been neutered by the deep state, the neocons retain full control.

http://thesaker.is/the-trump-administration-goes-neocon-crazy/

The CIA runs the media, they run the narrative, the American people do not have a government, they are ruled by the deep state:

http://thedailycoin.org/2017/04/03/paul-craig-roberts-cia-controls-ameri...

World War approaches

beemasters's picture

The witches have finally succeeded in putting a hex on Trump. He is losing focus and looking to start wars instead.

The Management's picture

Agreed.

If he doesnt bash at ACA and tax reform the truly Fuck Trump.

Im a huge fan but leave the fighting to the Pentagon.

His only priorities should be domestic.

The battles there are 100X larger than some bunch of assholes in the sand.

SafelyGraze's picture

"Both Obamacare Repeal And Trump Tax Reform Are Dead"

excellent

now for some warz

with syria n russia n korea.north n yemen n stuff

jobs for everybody, watching drone-screens. pressing buttons on the joystick. 

anarchitect's picture

I hold out one hope, namely that Trump will let the government shut down when there isn't agreement on raising the debt ceiling.

And I mean TRULY SHUT THE SUCKER DOWN.  All the three-letter agencies that are violating the Constitution.  Keep the national parks open, and nothing else.  No checks going out, NONE.  And none going out retroactively, especially for bureaucrats' salaries.

Manthong's picture

I was an enthusiastic Trump supporter until the ACA remove and replace fail and the naiveté I see on the real causes of the Syrian chemical attack incident (it’s the terrorists, stupid).

I am starting to think of him as “President Not Hillary” now.

..and Nikki Haley… just we need, a talking head at the UN.

JamesBond's picture

Repeal and flat tax system (% federal or national sales tax).

 

Cut and paste, cut and paste, cut and paste.

 

jb

paizan's picture
paizan (not verified) JamesBond Apr 5, 2017 10:37 PM

Flat tax? Won't happen. Nothing good will happen. The country is cursed.

http://biblicisminstitute.wordpress.com/2014/07/17/is-america-cursed/

caconhma's picture

Any war comes with very many unpredictable consequences. However, when we in America have very dysfunctional government, the consequences could be just catastrophic. Just look at out latest failures:

  • Who could expect that Vietnam would go for a very long time with and ended with the American defeat. 
  • Who could expect that that Iraq and Afghan wars will go with no any end insight
  • The Korean war has never ended and is ready to be restarted again with China supporting and fighting side-by-side with NK aganst the USA
new game's picture

2 party tyranny presenting a clear and present danger...

chiquita's picture

His only priorities should be domestic.

 

I really liked it when Trump said he was the President of the United States, not the president of the world.  I really hope he stands by that.

VinceFostersGhost's picture

 

 

These Illuminate assholes.......are really starting to piss me off.

Zorba's idea's picture

IF TRUMP BETRAYS HIS BASE, HE'S FIRED

space shitle's picture
space shitle (not verified) Zorba's idea Apr 6, 2017 6:24 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

FrozenGoodz's picture

Don't buy that market trades at 20 PE solely based on hopes Trump will recreate the wheel ... the more he sits on his hands the longer it gives us to have Twitter wars

JRobby's picture

Don't work W2

Avoid 1099's as much as possible.

Set up an S corp.

QuantumEasing's picture

Nope.

Bad advice.

S-Corp is legally dissolved as soon as it is formed outside of the Domestic US (which is *ONLY* DC, Puerto Rico, Guam, Territories).

An S-Corp claims to be a Federal Enterprise, which unless you are contracting exclusively with the Feds, is going to get you nailed to the wall for fraudulently claiming a status you are not entitled to. Set up an LLC if you must incorporate.

W2s and 1099s?

Just file a form 4852 for every W2, and a corrected 1099-MISC for every one you received, along with your 1040 or 1040EZ stipulating any amounts of Federal Income were incorrectly reported. Unless you had legitimate Federally connected income, in which case you MUST pay the excise on it.

It's not rocket science.

Disclaimer: Not an attorney, accountant, nor do I play one on TV. This is based on personal experience. Your milage may vary, not responsible for incontinence, impotence, or restless leg.

But as usual, expecting a deluge of downvotes from the shills and those suffering from FUD.

AGuy's picture

"An S-Corp claims to be a Federal Enterprise, which unless you are contracting exclusively with the Feds, is going to get you nailed to the wall for fraudulently claiming a status you are not entitled to. Set up an LLC if you must incorporate."

S-Corp is C-Corp lite (Small Business Corp). an S-Corp cannot retain a profit and and the end of the year all remaining funds have to be paided out (Salaries, expenses). S-Corp has less tax filings (no need to file Quarter reports ie 941).

Not Real answer which is better but:

1 S/C-Corp: you have more Deductible options like Health-Insurance. You cannot deduct Health Ins. with an LLC. S/C-Corps can set up Retirement plans (SEP, 401K, etc), LLC cannot.

2. LLC: You can reduce Payroll taxes by taking a lower salary and pay yourself with Dividends (that excludes Capital Gains) but subject to Fed\State Income tax. You cannot do this with an S/C-Corp. (dividend subject to Capital Gains + Fed\State Income Tax). But there are limits for avoiding the payroll. You cannot pay yourself $1 in income and Pay the rest out as dividends. Your salary must be relative the levels of other people performing the same type of service. LLC likely have less liability protection than an S/C-Corp since its not a corporation. If you get sued there is the possiblity that the plaintiff can target personal assets. S/C-Corp is a seperate entity and retains full personal liability protection. If your S/C-Corp gets sued, only the assets of the company are subject for liability. Of course this does not protect you from going to jail if you commit a crime unless you're a Wall street Banker :)

3. Some companies will not do business with LLCs over concerns of payroll/tax fraud problems that can bounce back on them. For instance if you run a janitorial service company and pay the workers under the table. the State/Fed can go after the company that hired the LLC too. LLC are consider as fly-by-night business and are avoided. if your doing retail/consumer work (ie repair, Plumber, electrician) and LLC is an option. if you working for the Fortune-400, then its unlikely they will permit an LLC to do business directly.

4. You make have difficulty obtaining Liability insurance as an LLC. It depends on the type of business your LLC does and the how the Insurance company feels about LLCs since they are generally riskier & less stable.

FWIW: I own a C-Corp for my consulting business but use a LLC for property protection. If I am personally sued my property in the LLC is exempt (well makes it harder to seize)

Ideally if you want to start a business It would best to meet with an accountant, and also an business attorney. Different business have different rules and Liabilities.

In this day and age it really isn't work trying to use tax-loopholes unless you have several business tax and business attorneys on staff. State/Fed/IRS will chew up small businesses like a meat grinder if you try to use loopholes, especially if you don't understand all of the little details. One small error can cost you big $$$ and easily whip out an tax savings. Best option is to use reasonable business tax deductions, and avoid getting in a fight with the Fed/State IRS.

Anteater's picture

A clever way is to vacation in Guam, get a mail box and a driver's license, then set up your LLC HQ there. You'll use the same tax forms, but you pay to GovGuam, not to the IRS. GovGuam could not care less what you write off, as long as they don't owe you anything. They're $2B into Goldman to borrow for tax rebates on over-withholding they looted and can't refund. Goldman owns Guam. An ancillary benefit is not one penny of your taxes goes to the Pentagon $6,000 billion MIA at MIC Fund. Another ancillary benefit is you can write off your twice-yearly 'board meeting' expenses to go pick up your 'vacation' mail and lay on the beach.

AGuy's picture

"You'll use the same tax forms, but you pay to GovGuam, not to the IRS. GovGuam could not care less what you write off, as long as they don't owe you anything."

I am certain whatever state you live and work will definately pay very close attention. And so will the Federal IRS.

"They're $2B into Goldman to borrow"

Again, if you read my original post the rules for Wall Street bankers do not apply to Joe Six Pack. You don't have a room full of hired attorneys and lobbyists protecting you.

Sorry man, but you don't know WTF your talking about.

QuantumEasing's picture

Again, all of what you just said is only relevant if you are the holder of a public office, or contract with the Federal Government. The tax on Federal Income only applies to Federally privileged behavior. Nothing else.

I have no interest in holding public office, nor sucking off the Federal teat, so I avoid all of that.

"Loopholes" are asking for trouble. Pay your taxes if you owe them.

99% of the populace does not.

AGuy's picture

"Again, all of what you just said is only relevant if you are the holder of a public office, or contract with the Federal Government."

No, your wrong. it does not apply to Federal workers or Federal contractors. It applies to any person or group that wants to set up a Corporation. Go read the Wiki S-Corp.

QuantumEasing's picture

26 USC 1361:

(a) S corporation defined

(1) In general For purposes of this title, the term “S corporation” means, with respect to any taxable year, a small business corporation for which an election under section 1362(a) is in effect for such year.

(b) Small business corporation

(1) In general For purposes of this subchapter, the term “small business corporation” means a domestic corporation…

26 USC 7701:

(4) Domestic

The term “domestic” when applied to a corporation or partnership means created or organized in the United States or under the laws of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.

United States is ONLY: DC, Guam, Puerto Rico, Territories. An S-Corp CANNOT legally be incorporated outside of the Domestic US.

I would also recommend familiarizing yourself with Title 26 Section 7701(a)(26), regarding what a Trade/Business entails:

https://www.law.cornell.edu/uscode/text/26/7701

Ignorance of the law will come back to bite ya in the ass if you are claiming to be a public official and are not.

JRobby's picture

You are either in a deferral (legal) strategy or you are in an avoidance (illegal) strategy. "They" will define your strategy for you and unless you have the resources to fight them in court, delay siezure, you lose.

JRobby's picture

Should have specified: LCC electing S - corp. Aguy touches on some basis issues that are the things that trip alot of people up because they do not have the mindset to understand the rules of basis.

How many years have you been running that game? Fine for 3 to 5 years depending on the $$$. Hope you have an offshore exit strategy and a passport they don't know about? Although a boat can make it from Key West to Belize with some extra fuel on board.

QuantumEasing's picture

If you have Federally connected income, or hold public office, that would be a good strategy.

If you are like the vast majority of people in the private sector, just learn the rules:

losthorizons.com

QuantumEasing's picture

Hedgeless, a simpler option would be to just realize you don't legally owe excise unless you are a public official or Federally Privileged Person.

Been this way since 1862.

JRobby's picture

Folks without a fortune at hand to argue this in tax court sit in jail after they have had assets siezed. Resources to fight do not guarantee victory in a corrupt judicial system.

QuantumEasing's picture

All the more reason to stop claiming to be something you are not. Perjury is a serious matter. Making ludicrous or specious arguments will get you nailed to the wall (look at Schiff).

Nobody has gone to jail applying CtC.

If you have Federal Income, you owe the tax. If you don't, you don't. It's not Rocket Surgery.

Onehundredpercentofnuthin...'s picture

I would start here, do as he suggests and spread the word.

http://www.taxhonestyprimer.com/

 

338's picture

Brought to you by the "emergency ' measure known as the withholding act of 1943.

 

Temporary in nature, I'm sure, move on little tax cattle, nuttin to see here.

 

Your leash holders are in charge now, hope you get some small limited government, right up your ass good and hard.

 

Run out and vote hard, and they'll return the favor.

 

S

detached.amusement's picture

HH, if you're going there, I hope you've read Barbuto's "Its Not the Law"

vato poco's picture

...in other news, today on 10 July 2016, a career politician has once again declared Trump and his campaign to be "dead in the water; it's clear he'll never win".

making this roughly the 200th such proclamation.

my god, y'all are a bunch of candyass dilettante ightweight pussymen. do you cry when you and your galpals watch the kardashians together?

truthseeker47's picture

Kartrashians?  Are they still around?  Where's my barf bag.

JRobby's picture

Funny that people thought there would be any major legislation passed before an incumbent blood bath in November 2018?

Why is that? Because people are stupid.  Those that aren't have an agenda. Others are impatient. Others have to complain 24/7. Others get paid to write about this shit show.

Just pathetic if you don't know that our legislative branch is wholly owned and controlled (blackmailed) by the elite. 

 

crossroaddemon's picture

Your "incumbet blood bath" is probably gonna look a lot like Democrat majorities in both house and senate... you know tha, right?

AGuy's picture

"probably gonna look a lot like Democrat majorities in both house and senate"

Very likely. The Pendulium quickly swings the other way when the RNC fails to fix anything and ends up starting a bunch of wars. As it stands that exactly the direction we are headed. More work and nothing fixed with the economy. Probably the only way out is a true independant third part that is able to sweep up at least two branchs of the federal gov't. Which seems far fetched in my opinion.

JRobby's picture

I know with certainty that you know nothing with certainty 

Alok's picture

it's over...  the neocons from deep state just take over the US presidency...  Trump will be an worsened Obama...  if it is possible, but trust me...    the whole planet is under a huge danger...

BarkingCat's picture

What The Fuck????

I don't want to spend another 4 years looking up to Putin.

With Obama in the White House it was understandable as any other leader that actually cared for his own country was to be admired.

I don't ask for much from Trump; just peace, so no more Obama's stealth wars.

Carl Spackler's picture

Mis-leading headline from the Tylers.

Is the author joining the mainstream media?!

In reality, nothing is dead, right now. It hasn't got the votes, yet, so a House vote is not planned for this week.

If accurate journalism were the goal, title would read, " No Obamacare repeal before the recess"

"Dead" means it will never get passed.

Tax reform has not even been written as a bill, yet.

How can that "bill" be "dead?"

So, the main Congressional story before the recess will be the Gorsuch approval.

earleflorida's picture

it's not meant to be misleading!

it gives life to discourse... and a much needed dialogue of political adrenaline here at ZH on the realities of the Obama messpots!!!

think, and think hard about your negative reaction?!?

100 days isn't set in stone to prove ones mettle, last i looked it takes fortitude and brains... with alittle gifted acumen, aptly a unique 'Trumpism`sine`qua-non vulpinism...[!]

vato poco's picture

what "discourse"? all I see is a greek chorus of marshmallow soft metrosexuals whining "it's totally OVERRRR!" "I KNEW this would happen!" "this is just too HARRRRRD!!" "Trump hasn't turned the whole stinking system around in his 70 days in office, so I totally QUIIIIIITTT!"

a country made of ice cream; men without chests; and everyone squats to pee so no one will feel left out