Top U.S. Senate Republican, White House, aim for tax bill by year-end

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Top U.S. Senate Republican, White House, aim for tax bill by year-end

By Doina Chiacu and Pete Schroeder

 

White House Office of Management and Budget (OMB) Director Mick Mulvaney (L-R), U.S. National Security Adviser H.R. McMaster, White House Homeland Security Advisor Tom Bossert, and Vice Chairman of the Joint Chiefs of Staff U.S. Air Force General Paul Selva participate in the first meeting of National Space Council at the National Air and Space Museum's Udvar-Hazy Centerin Chantilly, Virginia, U.S., October 5, 2017. REUTERS/Jonathan Ernst

 

WASHINGTON (Reuters) - The top U.S. Senate Republican and the White House budget director said on Sunday they hoped for action on a Republican tax reform package by the end of the year, while keeping their options open on how to pay for sweeping tax cuts.

 

President Donald Trump's plan promises up to $6 trillion in tax cuts but would increase the federal deficit by $1.5 trillion over the next decade. Democrats have criticized the package as a giveaway to the rich and corporations that would balloon the federal deficit.

 

Republicans, who control both the Senate and House of Representatives, have yet to produce a bill as their self-imposed deadline to overhaul the U.S. tax code by the end of 2017 approaches. The party's lawmakers differ widely on what cuts to make and how to pay for them.

 

The White House is not banking on achieving enough spending cuts to get through Congress, according to Mick Mulvaney, Trump's budget director.

 

"I think we've made a decision now within the administration that plan A or part of plan A, which was to try and cut our way to balance, just wasn't going to get very far in Washington, D.C." Mulvaney said on CBS' "Face the Nation."

 

"We hit off $54 billion worth of discretionary cuts in our budget back in March. Only about 4 or 5 billion (dollars) have survived so far on the Hill," he said. "We're not going to be able to cut our way to balance."

 

Senate Majority Leader Mitch McConnell said estimated growth for the overall economy in the Republican plan would offset the tax cuts.

 

Asked on CNN's "State of the Union" whether he has abandoned his longtime insistence that tax cuts be revenue-neutral, McConnell said, "No, actually we're not because that's a rather conservative estimate of how much growth you'll get out of this pro-growth tax reform."

 

Trump's tax reform proposal cleared a critical hurdle on Thursday, when the Senate approved a budget measure that will allow Republicans to pursue a tax-cut package without support from Democrats.

 

Sherrod Brown, a Democrat who attended a Senate Finance Committee meeting at the White House last week, said Trump is at a fork in the road on the tax reform bill. Brown said the president can work with Democrats on helping the middle class and keeping jobs in the country, or throw in with the billionaires.

 

"The people closest to the president whispering in his ear all want to do tax cuts for - want to do trickle-down economics, big tax cuts for the wealthiest people in the country, and hope it trickles down," Brown said on CNN.

 

"They say it's budget-neutral, and they say it will raise wages. It's never done that throughout history."

 

Mulvaney said he has heard that the House of Representatives may move quickly to accept the Senate's amendments and save 10 to 12 legislative days. If the House takes up the measure this week, he told "Fox News Sunday," it "absolutely moves the ball a lot, further a lot quicker toward an actual law."

 

McConnell also told Fox he expected Congress to get tax reform done by the end of the year.

 

The Republican Senate leader would not say whether he would back a proposal, reported by the Wall Street Journal on Friday, that Republicans were considering capping contributions to retirement funds.

 

"We're just beginning the process of actually crafting the bills," McConnell said on CNN. "It's way too early to predict the various details."

 

Mulvaney said the White House was "agnostic" about adding a top tax bracket, an idea floated by House of Representatives Speaker Paul Ryan.

 

"It's not a big piece for us. If the House needs to add it to pass a great tax reform, that's great. If they don't, that's great, too," Mulvaney said.

 

Trump was expected to travel to Capitol Hill on Tuesday to participate in Senate Republicans' weekly policy lunch, with the tax package high on the agenda.

 

(Reporting by Pete Schroeder and Doina Chiacu; Editing by Caren Bohan and Dan Grebler)

 

-- © Copyright Reuters 2017-10-23

[Foozool]

Nothing new, 

just as every time a republican become president. good job Mr Trump you made them all happy after all. Now you will be supported as a real GOP member.

Edited October 23, 2017 by Foozool

[riclag]

I have my fingers crossed for this to happen . It would be a nice Christmas gift.

 

yippee ki yay, a simplified tax form.No more accountant fees!  

[tonray]

13 minutes ago, riclag said:

I have my fingers crossed for this to happen . It would be a nice Christmas gift.

 

yippee ki yay, a simplified tax form.No more accountant fees!  

I'm not sure anything will be simpler...just different rate structure. The lobbyists are all over this already

[riclag]

1 hour ago, tonray said:

I'm not sure anything will be simpler...just different rate structure. The lobbyists are all over this already

It will for me .My accountant charges $220 and rising. I have only pension and SS income.I don't Itemize deductions ,I just take the standard deduction . I have 25 pages of state and federal tax forms to file.Trump's Plan will simplify it and have it on 1 page (postcard). Just fill it out ( I think 12 lines) stick it in a envelope and be done with it.I hate when December comes around bringing with it the anticipation of filing taxes. 

[tonray]

13 minutes ago, riclag said:

It will for me .My accountant charges $220 and rising. I have only pension and SS income.I don't Itemize deductions ,I just take the standard deduction . I have 25 pages of state and federal tax forms to file.Trump's Plan will simplify it and have it on 1 page (postcard). Just fill it out ( I think 12 lines) stick it in a envelope and be done with it.I hate when December comes around bringing with it the anticipation of filing taxes. 

If you have only a pension and SS...why do you have 25 pages to file ? And perhaps I missed it but I did not think we were going to postcard 1 page filings...in fact we really have not seen any tax plan details as of yet...just a basic outline of goals. I am with you and would love simplification (my issue is as a investor/trader I have to report every securities transaction which is nonsense since the broker reports it already !).

[riclag]

1 minute ago, tonray said:

If you have only a pension and SS...why do you have 25 pages to file ? And perhaps I missed it but I did not think we were going to postcard 1 page filings...in fact we really have not seen any tax plan details as of yet...just a basic outline of goals. I am with you and would love simplification (my issue is as a investor/trader I have to report every securities transaction which is nonsense since the broker reports it already !).

I have investment's as well .I'm getting out of the market to protect my principle investment's.This will bring down the forms needed between California state tax and the Feds.