11/01/2018

Dems, GOP Outline Post-Election Tax Priorities

They outlined differing tax policy priorities depending on who captures the House

Congressional Democrats and Republicans this week outlined differing tax policy priorities depending on the outcome of next week’s midterm elections.

President (Donald) Trump and House Ways and Means Committee Kevin Brady (R-TX) have been touting the success of last year’s Tax Cuts and Jobs Act, while promising more relief for the middle-class next year. Trump floated plans for an additional 10 percent tax cut for middle-class workers a couple of weeks ago, and he and Brady issued a joint statement this week reiterating their commitment to take “swift action” on that tax cut at the start of 116^th Congress next year.

“America’s workers deserve to keep more of what they earn,” Trump and Brady said. “We will focus on making the tax system better for hardworking middle-class Americans each and every year.”

Trump and Brady have vowed to make the middle-class tax cut revenue neutral and are likely to propose spending cuts to offset the next round of tax cuts. Congressional Democrats have been hammering Trump and the Republican-controlled Congress for the soaring deficit created by last year’s tax law and a massive spending increase for the Pentagon. The Treasury Department reported last week that the deficit hit $779 billion in fiscal 2018, the highest level since 2012.

Rep. Richard Neal (D-MA), who would chair the Ways and Means Committee if Democrats take back the House, has vowed to scrutinize and make changes to last year’s tax law focused on raising taxes on the wealthy and repealing the cap on the state and local tax deduction. Of course, there will be little expectation of these tax law changes becoming law if President Trump and Senate Republicans don’t cooperate.

If Democrats were to win control of the House, they might also pursue a $1 trillion transportation and infrastructure package funded in part by increasing the corporate tax rate and passing a 25-cent per gallon gas tax increase.

This article was provided to OSAE by the Power of A and ASAE's Inroads.