Failure on health bill hurts prospects for tax overhaul - KWWL - Eastern Iowa Breaking News, Weather, Closings

Failure on health bill hurts prospects for tax overhaul

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(AP) -

  WASHINGTON -- House Republicans' failure to repeal Barack Obama's health law deals a serious blow to another big part of President Donald Trump's agenda: tax reform.
   Republican leaders say they will soon turn to the first major re-write of the tax code in more than 30 years. But they will have to do it without the momentum of victory on health care.
   The loss on health care will also deprive Republicans of $1 trillion in tax cuts.
   The GOP health plan would have repealed nearly $1 trillion in taxes enacted under Obama's health law. The bill also included spending cuts to Medicaid, so it wouldn't add to the budget deficit.
   Without the spending cuts, it will be much harder for Republicans to cut taxes without adding to the federal government's red ink.

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