MNI EXCLUSIVE-US GOP Aide: Must 'Survive' Fall Debt Hike Drama

--Senior Senate Aide: GOP Must 'Survive' Debt Ceiling, Then 'Pivot' To Tax

Reform

--Senior GOP Aide: 'Unless We Raise Our Game, This Fall Will Be Pure Misery'

By John Shaw

     WASHINGTON (MNI) - A senior Republican Senate aide told MNI in an exclusive

interview Thursday that Republicans on Capitol Hill are developing a "survive

and be bold" fiscal policy strategy for the fall.

     In an interview, the Republican aide said the GOP's initial focus this fall

will be on lifting the statutory debt ceiling and funding the government for the

start of the next fiscal year.

     "If we can get past another debt ceiling adventure and keep the government

funded we can then pivot to the big stuff and be bold," he said.  

     "Getting through September is going to be the biggest challenge," he added.

     Treasury Secretary Steve Mnuchin sent a letter to Congress last week urging

lawmakers to increase the debt ceiling by September 29.

     The 2018 fiscal year begins October 1 and so far the House has passed four

of its 12 spending bills for FY 2018, but the Senate has not passed any.

     "The debt ceiling and (fiscal year 2018) spending have be managed, so we

can then turn to tax reform. But unless we raise our game, this fall will be

pure misery," he said.

     The Senate GOP aide acknowledged that this year has gotten off to an

inauspicious start. 

     "It's hard to argue the first seven months (of 2017) have been successful.

We have lost time that we're not going to get back," he said.

     He was referring to the traditional honeymoon period in which a new

President and Congress often makes progress on big issues in the initial months

of a new administration and Congress.

     "If we can get past the debt ceiling and don't shut the government down,

then maybe we can get some traction on the bit things," he said.

     He said "big things" refers to tax reform, possibly health legislation, and

an infrastructure package. 

     The House passed legislation to "repeal and replace" the Affordable Care

Act in early May but the Senate has been unable to pass a companion bill.

     Republican leaders are eager to begin working on tax reform legislation in

September, pledging to let the House Ways and Means Committee and the Senate

Finance Committee launch that effort.   

     The Senate GOP aide said the central problem Republicans have faced so far

has been intra-GOP bickering.

     "Hopefully we've learned a few things, like the importance of hanging

together. Otherwise the Dems (Democrats) will eat us alive this fall," he said. 

     "We know the Democrats are going  oppose our agenda. That's a given. We

don't need Republicans help them block what we're trying to do," he added.

--MNI Washington Bureau; tel: +1 202-371-2121; email: john.shaw@marketnews.com

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