By Jake Smith
After a bruising defeat on the Republican effort to repeal and replace Obamacare, the White House and Congressional Republicans set their sights on the first revitalization of tax reform in three decades.
“I would say that we will probably start going very, very strongly for the big tax cuts and tax reform. That will be next,” President Donald Trump told reporters in the Oval Office after the decision to pull the healthcare bill from the House floor.
Speaker of the House Paul Ryan encouraged President Trump to address healthcare first, if passed it would make tax reform easier. “Yes, this does make tax reform more difficult. But it does not, in any way, make it impossible. We will proceed with tax reform,” Ryan told reporters last Friday.
The administration’s plan is to “lower rates for Americans in every tax bracket, simplify the tax code, and reduce the U.S. corporate tax rate.”
Cutting the effective corporate tax rate to 20 percent, down from 35 percent, has been proposed by the White House to boost economic growth to four percent GDP growth per year.
President Trump has yet to commit to the border adjustment tax propelled by House Republicans, which would raise more than $1 trillion from taxing imports and exports.
Trump may not see the same fight from the House Freedom Caucus as he did during healthcare. “Does it have to be fully offset? My personal response is no,” House Freedom Caucus chairman Mark Meadows of North Carolina said on Sunday suggesting he is open to cut taxes even if it raises the deficit.
“We’re driving the train on this,” Press Secretary Sean Spicer told reporters on Monday concerning the White House’s involvement in the tax cuts efforts. Secretary of Treasury Steven Mnuchin has estimated a bill for tax reform will be ready around August.