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Senate Majority Leader Mitch McConnell said that any tax overhaul can’t add to the growing U.S. budget deficit, a position that places him at odds with President Donald Trump, who has called for a significant tax cut.
McConnell said in an interview Tuesday with Bloomberg News that the nation’s “alarming” debt requires an approach that would balance tax cuts with new sources of revenue to avoid changing overall government receipts.
“It will have to be revenue-neutral,” he said. “We have a $21 trillion debt.”
...
In an interview with The Economist that was published last week, Trump said “it is OK” if tax legislation increases the deficit in the short term in order to “prime the pump” for economic growth.
One of the tax changes being discussed is a border levy tax that would tax imports 20%. I assume this to counter the corporate tax being lowered from 35% to 15%. Companies say that it would cause them to raise their prices. The companies would have to choose to pay the extra tax, or make more of their goods here. I'm OK what that.
Anyway - there is going to be a big tax battle on this.
Senate Majority Leader Mitch McConnell said that any tax overhaul can’t add to the growing U.S. budget deficit, a position that places him at odds with President Donald Trump, who has called for a significant tax cut.
McConnell said in an interview Tuesday with Bloomberg News that the nation’s “alarming” debt requires an approach that would balance tax cuts with new sources of revenue to avoid changing overall government receipts.
“It will have to be revenue-neutral,” he said. “We have a $21 trillion debt.”
...
In an interview with The Economist that was published last week, Trump said “it is OK” if tax legislation increases the deficit in the short term in order to “prime the pump” for economic growth.
One of the tax changes being discussed is a border levy tax that would tax imports 20%. I assume this to counter the corporate tax being lowered from 35% to 15%. Companies say that it would cause them to raise their prices. The companies would have to choose to pay the extra tax, or make more of their goods here. I'm OK what that.
Anyway - there is going to be a big tax battle on this.
Will McConnell block tax cuts for Americans?
that will not fly with WTO, we have an agreement in place.
if we pull out of the WTO all hell breaks lose and China owns the future, show me a way to maintain the grand alliance and i will listen all day long.
But how do we throw in tariffs and not see the whole thing implode? who exactly would we sell 60 millions tonnes of pork too?
They can't use reconciliation and keeps the Dems out unless the plan is revenue neutral over ten years. Trump and Co. are planning on using so-called dynamic scoring with a bunch of pie in the sky estimates of how much a tax cut will increase revenues. Bush did that too. Years later we see it did nothing and we are trillions deeper in debt than we would have been otherwise.
Senate Majority Leader Mitch McConnell said that any tax overhaul can’t add to the growing U.S. budget deficit, a position that places him at odds with President Donald Trump, who has called for a significant tax cut.
McConnell said in an interview Tuesday with Bloomberg News that the nation’s “alarming” debt requires an approach that would balance tax cuts with new sources of revenue to avoid changing overall government receipts.
“It will have to be revenue-neutral,” he said. “We have a $21 trillion debt.”
...
In an interview with The Economist that was published last week, Trump said “it is OK” if tax legislation increases the deficit in the short term in order to “prime the pump” for economic growth.
One of the tax changes being discussed is a border levy tax that would tax imports 20%. I assume this to counter the corporate tax being lowered from 35% to 15%. Companies say that it would cause them to raise their prices. The companies would have to choose to pay the extra tax, or make more of their goods here. I'm OK what that.
Anyway - there is going to be a big tax battle on this.
Will McConnell block tax cuts for Americans?
I respect that Senator McConnell is cognizant of the need to shrink the deficit. I'd be impressed if he came up with a solution that helped decrease the outstanding debt.
However, I disagree with making tax cuts deficit neutral by cutting income taxes mostly for the upper income earners while raising consumer prices for the middle and lower income earners. Things like tariffs, value added taxes, and sales taxes are highly regressive - they lay heaviest on those who spend the greatest amount of their income on goods and services.
I respect that Senator McConnell is cognizant of the need to shrink the deficit. I'd be impressed if he came up with a solution that helped decrease the outstanding debt.
However, I disagree with making tax cuts deficit neutral by cutting income taxes mostly for the upper income earners while raising consumer prices for the middle and lower income earners. Things like tariffs, value added taxes, and sales taxes are highly regressive - they lay heaviest on those who spend the greatest amount of their income on goods and services.
You didn't think Republicans would tax themselves did you? They literally elected a billionaire.
The biggest fight will be over removing the interest tax deduction-something Trump and others in real estate use heavily.
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