Post by Deleted on Jan 25, 2017 14:45:38 GMT -5
Donald Trump, Republicans plan enormous tax cuts, even though it’s going to balloon the deficit
The Republican Party may throw away its fiscal responsibility mantra with its planned massive tax cuts
www.salon.com/2017/01/25/republicans-plan-to-go-through-with-enormous-tax-cuts-even-though-its-going-to-balloon-the-deficit/
January 25, 2017
President Donald Trump and his administration, along with congressional Republicans, are reportedly thinking of implementing massive tax cuts that aren’t revenue neutral — ones that would cause the deficit to rise dramatically.
“A number of Trump advisers in recent weeks have privately questioned whether tax reform needs to be ‘revenue neutral,'” Politico reported on Wednesday, citing people involved in the early discussions. What the Trump administration has not yet done, Politico noted, is figure out how to avoid ballooning the deficit while following through on its campaign promises to increase military spending, construct a border wall, and finance infrastructure development. This dilemma, along with the fact that it will be difficult for Republicans to bring Democrats on board for a tax cut plan that increases the deficit (the one from Trump’s campaign would cost $10 trillion over a decade), could prove very difficult for the Trump team to overcome.
House Speaker Paul Ryan is expected to fiercely oppose any tax cut plan that isn’t revenue neutral. Trump’s chief of staff Reince Priebus, strategist Steve Bannon and son-in-law Jared Kushner are all reported to have kept silent when Ryan made that clear to them during a private meeting.
Republican legislators seem to be split on the question of revenue neutrality.
“I think the government should be smaller, and I’m for tax cuts and spending cuts that reduce the overall size of the government,” Sen. Rand Paul, R-Kentucky, told Politico on Tuesday. “Trump’s [campaign] tax cut was large and not ‘revenue-neutral.’ I support what Trump ran on.”
The Republican Party may throw away its fiscal responsibility mantra with its planned massive tax cuts
www.salon.com/2017/01/25/republicans-plan-to-go-through-with-enormous-tax-cuts-even-though-its-going-to-balloon-the-deficit/
January 25, 2017
President Donald Trump and his administration, along with congressional Republicans, are reportedly thinking of implementing massive tax cuts that aren’t revenue neutral — ones that would cause the deficit to rise dramatically.
“A number of Trump advisers in recent weeks have privately questioned whether tax reform needs to be ‘revenue neutral,'” Politico reported on Wednesday, citing people involved in the early discussions. What the Trump administration has not yet done, Politico noted, is figure out how to avoid ballooning the deficit while following through on its campaign promises to increase military spending, construct a border wall, and finance infrastructure development. This dilemma, along with the fact that it will be difficult for Republicans to bring Democrats on board for a tax cut plan that increases the deficit (the one from Trump’s campaign would cost $10 trillion over a decade), could prove very difficult for the Trump team to overcome.
House Speaker Paul Ryan is expected to fiercely oppose any tax cut plan that isn’t revenue neutral. Trump’s chief of staff Reince Priebus, strategist Steve Bannon and son-in-law Jared Kushner are all reported to have kept silent when Ryan made that clear to them during a private meeting.
Republican legislators seem to be split on the question of revenue neutrality.
“I think the government should be smaller, and I’m for tax cuts and spending cuts that reduce the overall size of the government,” Sen. Rand Paul, R-Kentucky, told Politico on Tuesday. “Trump’s [campaign] tax cut was large and not ‘revenue-neutral.’ I support what Trump ran on.”
