White House Chief of Staff Reince Preibus says the president’s tax reform plan will include middle class tax cuts and a border adjustment tax — and they think they can get support from conservatives and Democrats.
It won’t be easy. Here’s what both sides are saying:
“Moving forward, the president’s vision on lowering taxes for every American is what’s going to unite not just [the] Republican party, but I think some of those Democrats are going to come on-board as well if we can provide one of the biggest middle class tax cuts in the history of this country,” Preibus said.
“If he aims a proposal aimed at the middle class and the poor people, doesn’t give breaks to the rich — they’re doing great. God bless them. I’m glad they’re doing great. They don’t need another tax break — we could work with them,” Sen. Chuck Schumer said.
Having to pull the healthcare reform bill on Friday was a major blow for Republican’s tax plan because the bill eliminated $1 trillion in Obamacare taxes over a decade — so if you got rid of those, it would have lowered the revenue baseline for tax reform.
They’re hoping to make up that trillion with a border tax on imports. Opponents say it could cause prices in the U.S. to spike, but backers say it would pay for corporate tax cuts and keep businesses in the U.S.
“We want to make sure there’s a level playing field between foreign products and ‘made in America’ products, here as well as abroad,” Rep. Kevin Brady said.
Congressman Brady says the House Ways and Means Committee plans to take up tax reform this spring.
He says it will make the tax code so simple that nine out of 10 Americans could file their taxes on a postcard.