Wednesday, 18 October, 2017

Trump Says Republicans' Tax Plan Won't Help the Rich

TRUMP: Congress should 'move fast' on the 'biggest Tax Cut & Tax Reform package in the history of our country' Republicans prepared to release details of tax plan in upcoming weeks
Melinda Barton | 17 September, 2017, 06:57

And some conservatives were voicing concerns about Trump's newfound fondness for making deals with Democrats, as he did last week on the debt ceiling with House Minority Leader Chuck Schumer of NY and House Minority Leader Nancy Pelosi of California.

"But Ryan dismissed the possible deal as preliminary discussions and insisted any agreement must have buy-in from GOP leaders". That may not fly with most Republicans in Congress, but given Trump's apostasy on certain subjects, such as his willingness to close tax loopholes that benefit hedge fund managers (though Mnuchin on Tuesday floated the possibility that other kinds of firms might still be able to use it), he may be willing to cut a deal. The Texas Republican told members that following the tax plan release, the focus will turn to the House and Senate completing the budget process by mid-October, the person said.

"Any chance to talk with the president about issues important to North Dakota is an opportunity I welcome", said Heitkamp.

President Donald Trump has been reaching out to Democrats to discuss a tax revamp.

Or maybe not. House Speaker Paul Ryan on Wednesday "backed off months of promises that the Republicans' tax plan won't add to the nation's ballooning deficit", the Associated Press reported.

Trump is scheduled to meet Wednesday afternoon with 13 House lawmakers - eight Democrats and five Republicans.

Republicans control both chambers of Congress, and they can push through tax cuts on a simple majority basis in both the House and Senate - in theory.

Lowering the corporate tax rate to 15 percent has always been a key part of Trump's plan to rewrite the country's tax code.

House members discussed a goal for the corporate tax rate of 20 percent, Meadows said - a cut from the current 35 percent rate.

The top Republican tax law writer in the U.S. House of Representatives said on Thursday that he does not expect an upcoming tax reform framework to contain specific numbers on income tax rates for corporations and individuals. That goal may be hard; 45 of the 48 Democratic senators signed a letter earlier this year that laid down three conditions for supporting tax legislation: that it not add to the federal deficit, that it not increase the burden on the middle class and that it go through the regular order process in Congress.

Still, Reed said: "I am still committed to reducing tax rates across the board". That remains below the U.S. federal government's 35% rate, but it's higher than what Trump suggested in his tweet.

Democrats have vowed to reject any plan that would offer tax breaks to the wealthy and also oppose the president's call to repeal the estate tax.

Similarly, Trump's rhetoric is at odds with the math regarding his proposed reduction of seven individual tax brackets to three tax brackets of 10, 25 and 35 percent.

Trump continues to put pressure on lawmakers to get a tax bill completed - he posted a Twitter message on Wednesday saying: "With Irma and Harvey devastation, Tax Cuts and Tax Reform is needed more than ever before". But unless there is a sudden epiphany in Washington, what Trump and congressional leaders are pursuing is not tax reform.