President Donald Trump sent out an opening salvo in the battle for tax reform on Thursday morning, tweeting an attack at Democrats.
“Democrats don’t want massive tax cuts – how does that win elections?” Trump tweeted. “Great reviews for Tax Cut and Reform Bill.”
Trump and the “Big Six” tax negotiators — made up of top White House economic advisors and congressional leaders — released a nine-page outline for their massive tax reform effort that would bring the corporate tax rate down to 20% from 35% and reduce the number of individual tax brackets from seven to three.
Democrats have generally been opposed to Republicans’ tax reform efforts, arguing that the plan would predominately benefit the rich and expand the deficit without contributing to economic growth.
Trump’s tax reform plan would lower the individual tax rate for the wealthiest individuals in the country to 35% from 39.5%. Trump argued, however, that due to the removal of deductions, the rich won’t end up paying less in taxes. The outline released on Wednesday contained little detail, and did not make it clear how that would be the case.
Democrats fired back at the plan after its release.
“The ‘new’ Republican tax plan is the same warmed-over, trickle-down plan they have been pushing for decades,” Sen. Elizabeth Warren said in a statement. “It delivers massive tax cuts to millionaires and giant corporations and kicks working families to the curb.”
Senate Minority Leader Chuck Schumer echoed these statements.
Each of those proposals would result in a massive windfall for the wealthiest Americans and provide almost no relief to middle-class taxpayers who need it the most,” Schumer said on the Senate floor. “It seems that President Trump and Republicans have designed their tax plan to be cheered in country clubs and corporate board rooms.”
There remains a long road ahead for tax reform. Republicans still have to pass a budget, finalise the legislative language of the tax bill, get it through committees in both the House and Senate, and more.
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