Tax reform may not happen until early next year

Sen. Ted Cruz expects tax reform to get done “late This specific year or early next year” — not sticking to the hard 2017 deadline set out by top Republicans.

The Texas Republican told CNBC on Friday which will take “at least a couple months” to iron out differences within the GOP, which carries a narrow majority inside the Senate.

“I do think virtually every Republican wants to get to yes” on overhauling the tax system, Cruz said on “Squawk Box.”

President Donald Trump, top White House officials as well as also House Speaker Paul Ryan have all set a target of This specific year to approve a tax bill. Ryan said Thursday he would likely keep the House in session through Christmas if necessary.

Late last month, Republicans released a framework for the taxproposal they trust to pass This specific year. which calls for major reductions in household as well as also corporate income tax rates as well as also a doubling of the standard deduction.

The framework left out many key details. The congressional tax-writing committees are likely to spell out specifics once Congress passes a joint budget, a key step inside the process.

Already, the GOP has run into political hurdles. Some GOP lawmakers, like Sen. Bob Corker, have expressed concerns about the potential budget deficits generated by the cuts.

Cruz has no such concerns, saying he wants an “unapologetic tax cut.” Next week, the Senate is usually likely to pass a budget resolution allowing for $1.5 trillion in tax cuts under the reconciliation process. which number does not include the estimated effects of economic growth.

Cruz contended Republicans should go “much bigger as well as also much bolder” on cutting taxes, saying deeper cuts will spark more economic growth as well as also make up for the lost revenue.

Republican lawmakers in high-tax blue states have also began to push back on a proposal to get rid of state as well as also local tax deductions, a method to raise money to help offset tax cuts.

Cruz supports ending the deductions as long as middle-income people inside the states see an overall reduction under the plan.

“We can end which deduction if we’re lowering the tax rate enough which even people in those blue states are seeing a net tax reduction,” he said.

One independent analysis of the GOP tax framework estimated more than a quarter of middle-class Americans would likely eventually see a tax increase under the alterations. Sen. Rand Paul, R-Ky., Cruz’s fellow fiscal conservative, raised concerns about tax cuts not being deep enough after the Discharge of which estimate.

Cruz said the question he wants to ask as the GOP drafts the plan is usually, “Are we improving the lives, are we improving the take-home pay, are we improving the prospects of working men as well as also women?”

Cruz waged a fierce battle against Trump for the 2016 GOP presidential nomination.

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