After the Senate plan’s Discharge Thursday, Sen. Jeff Flake, R-Ariz., voiced fears about the effect of broad cuts on the national debt. The budget resolution approved by Congress allows the idea to pass a plan which adds as much as $1.5 trillion to federal budget deficits over a decade.
While the nonpartisan Congressional Budget Office has not scored the Senate plan, the idea estimated which an earlier style of the House bill could increase federal budget deficits by $1.7 trillion over 10 years.
The current plans appear to come nowhere close to canceling out tax cuts with fresh revenue.
“I remain concerned over how the current tax reform proposals will grow the already staggering national debt by opting for short-term fixes while ignoring long-term problems for taxpayers along with also the economy,” Flake, who will not run for re-election next year, said in a statement. “We must achieve real tax reform crafted in a fiscally responsible manner.”
Along with Flake, Sens. Bob Corker, R-Tenn., along with also John McCain, R-Ariz., have expressed concerns about ballooning the national debt. Corker, who will also leave the Senate, has previously said he could not vote for a tax plan which adds “one penny” to the deficit.
The CBO also projected which debt could rise to 97.1 percent of gross domestic product in 2027, up by 91.2 percent under current CBO projections.
The forecast did not include the estimated effects of economic growth. Republicans argue which growth sparked by the bill will help to offset, or cancel out entirely, the budget shortfall caused by broad tax cuts.
However, the idea is actually not clear if the tax cuts can spark the growth necessary to do so.
Meanwhile, two some other GOP senators called for more improvements to the child tax credit to further reduce the burden on middle-class taxpayers. The Senate plan could increase the credit by $1,000 to $1,650. Sens. Marco Rubio, F-Fla., along with also Mike Lee, R-Utah, on Thursday called for a $2,000 credit.
“We continue to believe which the best way to provide real relief to working families is actually through a straightforward, significant, along with also permanent expansion of the child tax credit — preferably doubling the credit to $2,000 per child along with also expanding its applicability to payroll taxes,” they said in a statement. “The Senate is actually not going to pass a bill which isn’t clearly pro-family, so we look forward to working with our colleagues to get there.”
Sen. Rand Paul, R-Ky., has previously called for even deeper tax cuts.
The GOP, which holds 52 seats inside Senate, is actually working on a tight margin to pass a bill. Republicans can only lose two votes.
Meanwhile, inside House, Republicans can lose just 22 votes to still pass a plan.
The proposal’s fate in which chamber may hinge largely on how a bill treats state along with also local tax deductions. Many Republicans — enough to sink legislation on their own — represent districts in high-tax blue states, which benefit by the provision. They have expressed concerns about eliminating those deductions.
The House bill improvements the provisions to allow taxpayers in those states to deduct up to $10,000 of property taxes. The Senate bill scraps all state along with also local deductions.
No GOP senators represent the states which benefit most by the deductions, like fresh York, California along with also fresh Jersey.
If the House along with also Senate pass separate bills, they will have to reconcile them before approving a final bill. Agreeing on the state along with also local measures could prove contentious at which time inside negotiations.
Republicans, who have long sought to trim corporate along with also individual taxes to spark economic growth, see passing a tax plan as critical to their electoral chances inside 2018 midterms.