Office of Management and Budget (OMB) Director Mick Mulvaney announced on Wednesday that the Trump administration would release details of its tax-reform plan on September 25. His announcement came in the wake of a meeting between the president and seven senators on Tuesday night.
Mulvaney also reiterated this morning that the tax reform was unlikely to be revenue neutral. On Tuesday, the OMB director pointed out that a tax revamp which did not add to the deficit would not successfully “unleash the American economy.”
“We need as big and as dramatic a tax reduction and tax reform as we possibly can get. And I think if we look at this through that static model and say, ‘Well, we’re going to have to raise money over here to make up for taxes foregone over there,’ we will never get the size of the tax reductions and tax reforms that we need,” Mulvaney stressed.
With regard to the federal corporate income tax, Mulvaney also said that the president was “adamant” that the rate should be reduced to 15 percent. Although he fully backs Mr. Trump’s 15-percent goal, Mulvaney cautiously warned that the corporate tax rate may not go down as much as anticipated.
“The president doesn’t get to wave a magic wand and do everything that he wants. So what we’re hoping for is that we can get as close to that 15 percent as we can. Because the closer we get to the 15 percent, the better the impact on the economy, the more growth, the more opportunity, the more jobs. And that’s what’s driving all of this,” Mulvaney said.
Senate Minority Leader Chuck Schumer (D-N.Y.) yesterday said that the Democrats were willing to work with the Republicans provided the tax reform did not break three “basic principles.”
First, the plan should not include tax cuts for the wealthiest Americans. Second, the tax reform should be a bipartisan effort. Third, the tax revamp should be revenue neutral. With regard to the third principle, Schumer said that the Democrats were concerned that the GOP wished to reduce the tax burden “to starve the government of revenues” which, they fear, would make it easier for the Trump administration to then reduce funding to Social Security, Medicare and Medicaid.
President Trump is due to meet a number of House representatives from both parties on Wednesday afternoon. Following yesterday’s meeting, White House Press Secretary Sarah Huckabee Sanders said that the president would continue to work with both sides of the aisle to advance his agenda.
“He wants to continue building unity by working on more issues supported by both parties, especially restoring fairness to our broken tax code and cutting taxes for hardworking Americans,” she said.Share