Balanced News Blog

Republican leaders return to the Capitol this week determined to cut both taxes and spending, a combination that is fraying party unity as the GOP prepares for next year’s elections.

While tax-cut packages in both the House and Senate skew toward investors and other middle- and upper-income taxpayers, the spending cuts fall partly on programs aimed at lower-income Americans, such as student loans, food stamps and Medicaid.

The House of Representatives and the Senate Finance Committee postponed action last week when rebellions by GOP moderates left leaders short of votes for two packages. The Senate panel stalled on a bill to cut taxes by almost $70 billion over five years. The House put off action on a package to cut spending in the same period by more than $50 billion. Both chambers must eventually agree on some version of both bills.

Republican leaders are caught between party loyalty to tax cuts and growing pressure to cut spending. During the past four years, Republicans, with limited Democratic support, have been able to enact large tax cuts without making offsetting reductions in spending.

Source: USA Today