White House looks past conservatives on tax reform - to Democrats

By Lindsay Dunsmuir and Doina Chiacu, via WHTC News.

WASHINGTON (Reuters) - Fresh off a defeat on U.S. healthcare legislation, the White House warned rebellious conservative lawmakers that they should get behind President Donald Trump's agenda or he may bypass them on future legislative fights, including tax reform.

The threat by White House chief of staff Reince Priebus to build a broad coalition on tax reform that could include moderate Democrats came as the Republican head of the tax-writing committee in the House of Representatives said he hoped to move a tax bill through his panel this spring.

House Ways and Means Committee Chairman Kevin Brady said his committee had been working on tax reform in parallel with the failed healthcare reform push.

"We've never stopped working," Brady told Fox News' "Sunday Morning Futures with Maria Bartiromo." "We will continue to make improvements."

Brady said the committee planned to move on the bill in the spring. He said he wanted the House blueprint to be the basis for Trump's tax reform plan rather than have competing versions from Treasury and the White House.

Investors on Wall Street worry the healthcare bill's defeat bodes poorly for tax reform. Equities have rallied since Trump's election partly on expectations of tax cuts. Economic growth would be more modest without fiscal stimulus and U.S. equity index futures fell to a six-week low on Sunday.

Both Trump and Priebus have scolded hardline conservatives who rejected legislation backed by the White House to replace the 2010 Affordable Care Act, known as Obamacare.

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