What the hell....

Trump White House fed up with the Senate

With tax cuts on the line, 'We look at the Senate and go: "What the hell is going on?"' said White House budget director Mick Mulvaney.

By BURGESS EVERETT and JOSH DAWSEY

President Donald Trump and Mitch McConnell stood side by side at the White House Monday afternoon to declare they’re “together totally” and “very united” heading into this fall’s tax reform battle.

But behind the scenes, Trump, his administration and even some senators are increasingly worried that taxes will go the way of Obamacare repeal in the Senate: Months of bickering ending in extreme embarrassment.

The debate hasn’t even started on the GOP’s plan, yet some senators are pushing their own tax proposals, while others are increasingly emboldened to defy the Republican president. It’s a dangerous mix considering that McConnell can lose only two votes assuming Democrats band together in opposition.

“We look at the Senate and go: ‘What the hell is going on?’” White House budget director Mick Mulvaney said in an interview Friday.

“The House passed health care, the House has already passed its budget, which is the first step of tax reform. The Senate hasn't done any of that. Hell, the Senate can’t pass any of our confirmations,” Mulvaney fumed in an interview, slapping a table for emphasis. “You ask me if the Republican-controlled Senate is an impediment to the administration’s agenda: All I can tell you is so far, the answer’s yes.”

The revulsion for the Senate’s age-old traditions and byzantine procedure boiled over in public repeatedly on Monday. Trump complained in front of TV cameras that the Senate is “not getting the job done” and said he sees where Steve Bannon — his former chief strategist now planning to run primary challengers against incumbent Republican senators — “is coming from.”

And House Speaker Paul Ryan (R-Wis.), when asked Monday to name the biggest impediment to tax reform, replied: “You ever heard of the United States Senate before?"

Shortly after, Trump and McConnell held an unusual 40-minute unity news conference intended to sooth a jittery party that’s watched Trump attack “Mitch M” for failing on health care reform and McConnell assert that Trump had “excessive expectations” for Congress. Trump suggested he would try to get Bannon to back off on some of McConnell’s incumbents, and McConnell sought to keep the tax reform critics at bay after Trump said he wants it done this year.

“We’re gonna get this job done and the goal is to get it done by the end of the year,” McConnell said after lunching with the president. The meeting had been long-planned, but the impromptu news conference was Trump’s idea, two sources familiar with the event said.

McConnell is expected to hold a vote this week on the budget — a precondition for tax reform — and GOP aides expect it to pass. That will relieve some of the pressure on the chamber, which has been receiving flak nonstop from donors, House members and the president since the health care implosion this summer.

Administration officials are hoping that frustration produces enough pressure to force the Senate to pass tax reform. But already, there are signs of trouble.

Sen. Ron Johnson (R-Wis.) is so skeptical that the Senate can enact the GOP's tax framework that he’s begun pitching his own tax plans to colleagues. It would shift the burden of corporate taxes onto shareholders and allow individuals to opt out of the existing tax code and into a system without the confusing array of tax preferences and deductions that people can now choose.

It’s radically different from what congressional leaders and the president proposed. But Johnson said in an interview that leadership’s plan “is going to be very difficult to pass. We’ve already seen with the outline now, with the principles given, that’s going to be a challenge.”

“I don’t want to be a problem child here, but what I’m offering is a plan B,” Johnson added. “If they can’t get the votes … I’ve got an alternative.”

Senate Majority Whip John Cornyn (R-Texas) brushed off any negativity about the Senate's work, insisting that he never thought the party’s agenda is “off track.” But he said the sniping from Mulvaney and Ryan — and skepticism from some Republican senators about the prospects for tax reform — is not helpful.

"I don’t think that sort of thing is very constructive myself,” Cornyn said Monday.

The House is sure to labor to pass tax reform, too. Members from high-tax states are already rebelling against plans to gut the deduction for state and local taxes. But two White House officials said the most serious concerns are in the Senate.

“I was really not happy that this Congress couldn’t control its own members and get to a winning vote on health care,” said Sen. David Perdue (R-Ga.). “This tax code is something we’ve got to do. We’ve got to do that this year. It’s a test of the Republican majority.”

But like with health care, the tax reform process is moving more slowly than many Republicans would like. There’s no bill yet, for starters. And White House officials have deliberately left some policy details vague because they're unsure what it will take for various senators to get on board and want to leave their options open, one of these people said.

The White House officials expect a multitude of demands from Sen. Bob Corker (R-Tenn.) regarding the deficit, and from Sen. Rand Paul (R-Ky.) on middle-class tax cuts. Nevada Sen. Dean Heller, perhaps the most endangered Republican senator on the ballot next year, is expected to have his own asks.

Other moderate Republicans senators are expected to hold major sway as well, including Lisa Murkowski of Alaska and Susan Collins of Maine. Another wild card is Sen. John McCain (R-Ariz.), who has voted against past tax cuts and cast the decisive vote against Obamacare repeal.

"We're expecting to have to make some deals here," one official said.

Rattled that many senators are still on the fence, the Koch network encouraged its donors at a recent retreat to call Republican senators and push them to vote for tax reform. Vice President Mike Pence told donors at the Koch summit that they thought they could convince Paul and that Trump planned to travel more to win over wavering senators.

And after working for months on an Obamacare repeal-and-replace bill that went nowhere, senators say they feel more urgency than they ever have on taxes.

“If you just stand there you get run over,” said Sen. John Kennedy (R-La.). “I don’t want to see what happened to us on health care happen to us on tax reform. Which is basically, we analyze it until we are paralyzed.”

If that happens again, Republicans are warning of dire consequences: Losing the House and possibly the Senate, and inviting a new wave of ire at incumbents. In an urgent plea over the weekend, Sen. Lindsey Graham (R-S.C.) even suggested on CBS' “Face the Nation” that if the party can’t pass tax reform and repeal Obamacare within the next few months, “it will be the end of Mitch McConnell as we know it."

People close to Trump said the White House isn’t there yet.

“We don’t get into leadership races down here,” Mulvaney said. But maybe, he suggested, the pressure on McConnell and “the Senate’s failure to pass health care might actually help us to get tax reform passed. Because I think they know they need to get something done.”