Published: Sun, September 17, 2017
World | By Paul Elliott

GOP speaker says Trump didn't cut deal with Dems

GOP speaker says Trump didn't cut deal with Dems

Competing versions: "President Trump met Wednesday with Sen". The nation needs tax reform, but not tax cuts for the wealthy that would sacrifice popular tax deductions and raise the federal deficit. We still need to see more details about what this tax reform plan entails, and I look forward to reviewing them.

As part of a cascade of tweets Wednesday night, President Donald Trump said one of the major incentives for a tax overhaul, including cuts, was making the United States more competitive with the rest of the world.

Trump reiterated that he hoped to lower the top corporate tax rate from 35 to 15 percent, something Ryan has already ruled out as impractical - and an idea the president himself has backed off from, according to people with knowledge of a meeting he held Tuesday night with bipartisan senators.

On taxes, Trump himself added to the complications when he surprisingly declared, at a meeting with a bipartisan group of House members, that taxes on the wealthy would not go down under the GOP plan and might even go up. Republicans point out the US corporate tax rate is the highest in the world, but in fact most companies pay a far lower rate, and after deductions and credits the highest effective tax rate is just over 19 percent.

"China has a business tax rate of 15%", he tweeted. It would not create the millions of new jobs he talks about or increase economic growth by the wild numbers he tosses around. Under current law, only estates worth more than $5.49 million for individuals - or $10.98 million for married couples - are subject to the 40 percent tax.

Mr Trump has said the rich might see a hike in taxes as he pursues his tax overhaul by reaching out to Democrats to oppose cutting tax rates for the wealthy.

The panel will be tasked with coming up with solutions for all those issues that could be supported by a majority of the majority.

Trump also is pushing an old Republican favorite: eliminating the estate tax. "We're looking at the middle class and we're looking at jobs".

Earlier Wednesday, Ryan and House Ways and Means Chairman Kevin Brady met behind closed doors with GOP lawmakers to lay out a timetable on taxes, pledging a detailed blueprint from top congressional Republicans and administration officials in the final week of September.

Trump continues to put pressure on lawmakers to get a tax bill completed - he posted a Twitter message on Wednesday saying: "With Irma and Harvey devastation, Tax Cuts and Tax Reform is needed more than ever before". While some deficit spending could be justified for initiatives that would stimulate the economy, such as a substantial investment in infrastructure, there is no reason to add to the deficit for tax cuts to fulfill a campaign promise. And during a speech in Missouri late last month, he warned Congress not to disappoint him on tax reform. It's just another tax cut for the wealthy that the nation can not afford.

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