President Donald Trump is expected to begin fleshing out his plans for a tax cuts next week, and the administration is far into negotiations with Republican leaders in Congress on the effort. 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. (Both of those would have an outsized impact on states that have relatively high state and local tax rates and housing costs.) Getting the rest of the way without embarrassingly optimistic economic projections would require massive spending cuts, the burden of which would fall disproportionately on lower income households, while the benefits of the cuts would disproportionately go to the wealthy.
But the meeting was mostly geared toward the tax plan.
President Donald Trump is in a big rush for Congress to approve big tax cuts, and he is using the damage left by Hurricane Irma to argue his case. "The question is will they have the political courage to look at the principles and the substance of the proposal and I hope they will", said Mulvaney. 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. "We're looking at the middle class and we're looking at jobs". White House Budget Director Mick Mulvaney said the target date is September 25.
Ryan has said that any legislative solution for former DACA recipients must also include increased border security, though he has not presented any details.
At least one Republican in Congress, Representative Mark Meadows of North Carolina, indicated some willingness to consider Trump's position, saying it wasn't a "nonstarter" for him.
Ryan's comments signaling possible retreat on a core GOP commitment came amid quickening action on taxes, which Republicans view as their last, best chance to notch a significant accomplishment to take to voters in the 2018 midterm elections following the collapse of their "Obamacare" repeal drive.
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. And on the corporate side, the rates being targeted by President Trump and tax negotiators in Congress and the administration can't happen if the goal is to keep government revenue at current levels. 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. The Texas Republican told members that following the tax plan release, the focus will turn to the House and Senate completing the budget process by mid-October, the person said.
Referencing tax cuts signed by President George W. Bush, Ryan said, "You can't just do what Bush did in 2001 and 2003". "Now Trump is talking about doing bipartisan stuff with Chuck and Nancy on taxes".