Trump's tax reform sparks a battle between Republicans in Congress

The promised fiscal reform of US President Donald Trump, the deepest since the 1980s, faces the first legislative obstacles due to differences within the the Republican majority in Congress.

Washington, Nov 11 (EFE) .- The promised fiscal reform of US President Donald Trump, the deepest since the 1980s, faces the first legislative obstacles the differences within the Republican majority in Congress.

Both the House of Representatives and the Senate have submitted parallel proposals for tax reform, which although agree in general on the sharp tax cuts for companies and workers, they differ enough in times and tax brackets to make foresee a battle in the Congress.

After the grandiloquent words of Trump, who pointed out that the reform implies the biggest tax cuts since the 1980s and will be effective for all contributors, the paper on the legislative proposals has generated the first realism.

On the one hand, the president of the House of Representatives, Paul Ryan, has insisted that his proposal implies a "real relief" for the middle class and stressed that the savings for the typical American family would be $ 1,182 per year.

For its part, Senate Republican majority leader Mitch McConnell said in an interview in the New York Times that "it can not be guaranteed that absolutely nobody will see their taxes. "

McConnell's statements come after the Senate proposal that delays one year until 2019 Trump's flagship initiative, the decline of the corporation tax paid by companies from 35% to 20%, and that had been accepted in the House of Representatives plan.

Trump and his Treasury Secretary, Steven Mnuchin, have insisted that this reduction is key to accelerate economic growth up to about 4% per year, one of the president's electoral promises.

Likewise, the Senate maintains the seven tax sections compared to the simplification made by Trump and the House of Representatives, which reduced them to only three.

To this, it is added that the US president is looking square the circle on fiscal matters, since it ensures that the tax cuts will pay themselves thanks to the immediate economic rebound.

However, the calculations of the Office Budgetary Congress (CBO), a non-partisan body, estimated the cost of these plans about $ 1.7 trillion in the next decade, which has generated anger among the hawks Republican prosecutors, opposed to any increase in federal indebtedness.

"Negotiations will continue until we reach a consensus, this is a conversation in progress," he said. Republican Senator Ted Cruz, on the future of the proposal.

Uncertainty has begun to reflect in the markets, which after weeks of continuously recording records, and the Dow Jones de Industriales, the main indicator of the New York Stock Exchange, closed on Thursday and Friday with consecutive declines for the first time in weeks.

Wall Street knows what there is for in front of several weeks or months of negotiations in Congress until this reform is approved, but the discrepancies between the two legislative texts generated doubts, even more so after the Previous legislative stumble of Trump and the Republicans with his attempt to revoke the official health program known as "Obamacare".

Then, it became clear that despite the fact that Republicans have a majority in both houses of Congress, the internal fissures are too evident to achieve an ambitious pact.

Trump, who is on tour in Asia, has Both proposals were assessed as "a step in the right direction", although he acknowledged that there is still a lot of work to be done.

Before leaving on a trip, the president assured that he wants his tax reform plan is ready to be signed at Christmas, and again insisted on the superlatives: "It will be the largest fiscal event in the history" of the country.

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