Republican Tax Plan Rollout Could Face a Snag
The Donald Trump administration’s tax plan rollout went through another iteration today, as reports detail a potential gradual phase-in of the corporate tax rate change that is being proposed by the White House.
If the corporate tax rate does, in fact, end up being put into a scheduled rollout, in which the rate would drop from its current 35% to 20% by 2022, conservatives and Republican tax hawks might cause further tension and conflict in the already heated subject of federal tax policy.
The tax plan is already under hyper-partisan debate as Democrats, some economists, and a number of think tanks believe that President Trump’s taxation plan will primarily benefit the rich at the expense of a huge amount of revenue to the U.S. government.
Meanwhile, Republicans are fractured as two Senators recently have come out as vocal critics of Trump. While that may not affect the tax plan rollout, the break in the ranks could put the tenuous majority the Republicans currently enjoy at risk.
U.S. stocks suffered as result of the news that the corporate tax rate rollout would be staggered rather than immediate.
The exact text of the bill is still being kept under wraps, with the Ways and Means panel planning to release the details of the bill on Wednesday. Last month, only a broad framework was released by Trump and congressional Republican leaders.
“The president laid out his principles and it doesn’t include the phasing in, so we’re still committed to that moving forward,” said White House Press Secretary Sarah Huckabee Sanders during a press briefing. “I don’t have any reason to believe we have changes on that front at this point.”
One of the biggest sticking points concerning the tax plan has to do with a reported $1.6 trillion revenue decline over a decade, according to the Tax Foundation, a Washington-based policy group. The phase-in process would reduce the expense, but would still end up greatly costing the federal coffers.
Republican leaders have said they plan to follow their budget rules, which state that tax cuts that aren’t offset by enough revenue-generating provisions to prevent the added burden to the national debt would have to expire.
The battle over the tax plan rollout continues to rage on, both between parties, and within the parties themselves.
“House to Consider Five-Year Phase-in for Corporate Tax Cut,” Bloomberg, October 30, 2017.