Trump is said to plan tax signing Jan. 3 due to technical issue

WASHINGTON, D.C — President Donald Trump plans to sign the tax bill on Jan. 3 to ensure automatic spending cuts to Medicare and other programs don’t take effect, according to a House Republican aide familiar with the plans.

The White House informed House GOP members of the timetable, following the likely decision by House Republicans to leave the so-called PAYGO provision out of a year-end spending deal to avoid a government shutdown before Friday, said the aide, who asked not to be named because the plan hasn’t been publicly announced.

Trump and GOP leaders have repeatedly said the president would sign the legislation before Christmas. White House National Economic Council Director Gary Cohn signaled Wednesday morning that the signing date could be pushed back because of the potential for triggering the cuts.

Under the PAYGO law, automatic cuts to Medicare and other spending categories would be triggered by the tax bill in January because the bill is scored as increasing the deficit by $1.5 trillion over 10 years. Waiting until January means that those cuts would be delayed until 2019, according to budget expert Ed Lorenzen of the Committee for a Responsible Federal Budget.

Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan have vowed that the cuts would not be triggered. They will need Democrats to waive them this year, however, since doing so would require 60 votes in the Senate. Nearly the entire House Democratic caucus last week threatened to block a PAYGO waiver unless Republicans made concessions like restoring the Obamacare individual mandate.