House Speaker Paul Ryan backed off months of promises that the Republicans' tax plan won't add to the nation's ballooning deficit, declaring in an AP Newsmaker interview that the most important goal of an overhaul is economic growth. While the elements of that plan have yet to surface, if it resembles previous proposals from Trump and House Republican leaders, it would provide benefits for the nation's highest earners, based on various analysts' estimates.
Ryan says that window should give time for Congress to act.
"More and more we're trying to work things out together", Trump said, calling the development a "positive thing" for both parties. The president said on his trip to Florida last week that he wants to cut taxes for the middle class and that "the wealthy Americans are not my priority". Ron Wyden, an Oregon Democrat, have united most of their caucus behind a demand that any tax reform not only go through the normal procedure, rather than reconciliation, but that it also not benefit the top 1 percent of taxpayers or add to the deficit. This is another tax break for the wealthy, not the middle class. "But Ryan dismissed the possible deal as preliminary discussions and insisted any agreement must have buy-in from GOP leaders". And some conservatives were voicing concerns about Trump's newfound fondness for making deals with Democrats, as he did last week on the debt ceiling with House Minority Leader Chuck Schumer of NY and House Minority Leader Nancy Pelosi of California.
House members discussed a goal for the corporate tax rate of 20 percent, Meadows said - a cut from the current 35 percent rate.
"In order to get the size - the magnitude of the reductions that we want in the corporate and the individual rates and in order to get the sweeping reforms that we so desperately need - you absolutely will see an increase in the deficit in the short term", he said. Yet even as President Donald Trump hunted for Democratic votes for a plan that's not yet taken shape, and GOP leaders laid out an aggressive timetable to lawmakers, significant hurdles remained. "Now Trump is talking about doing bipartisan stuff with Chuck and Nancy on taxes". 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.
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".
"This is really the consensus of the tax writers themselves so that we're working from the same page", Ryan said during a press conference Wednesday.