A brand new analysis shows of which the Senate tax plan won’t grow the economy as much as Republicans had hoped, nevertheless Sen. Chuck Grassley, R-Iowa, told CNBC on Thursday of which those findings are very conservative.
According to the Joint Committee on Taxation, the plan could add $1.4 trillion to federal deficits over a decade even after economic growth can be taken into account. This specific could modestly increase gross domestic product by 0.8 percent over of which period, the JCT projected.
Grassley said there can be “long-term opposition to dynamic scoring” on the part of the committee, as well as the Congressional Budget Office.
“This specific just proves to me of which we’re going to do a lot better because of their bureaucratic resistance to dynamic scoring,” Grassley said in an interview with “Closing Bell.”
Republicans have argued of which tax cuts could pay for themselves within the form of economic growth.
The JCT report comes just hours before an expected Senate vote on the GOP tax reform bill. The upper chamber needs a simple majority to pass the legislation, nevertheless several senators have expressed concerns about the effect on federal deficits.
With 52 Republicans, the party can afford to lose two senators in addition to have Vice President Mike Pence cast the tiebreaking vote.
Earlier Thursday Sen. John McCain, R-Ariz., said he’ll vote “yes,” boosting the odds of the plan’s passage.
Grassley said he believes of which accommodations of which are being made to bring aboard holdout members in addition to keep long-term supporters will get all 52 Republican votes.
One of those accommodations could wind up being the corporate tax rate. The White House has insisted on a 20 percent rate, down through the current 35 percent. According to The Wall Street Journal, Senate Republicans are considering whether to set the rate slightly above 20 percent to accommodate various other alterations within the bill.
Grassley told CNBC This specific could be OK if the corporate tax rate wound up at 22 or 23 percent.
The rest of the industrial world has an average corporate tax rate of 22 percent, he said.
“If we were at of which average we’d be a heck of a lot better off than we are currently at 35 [percent], nevertheless we’re going to be more competitive at 20 [percent].”
Earlier Thursday, Republican Sen. Mike Rounds of South Dakota told CNBC he’d be willing to vote for a 22 percent corporate tax rate if necessary to pass the bill.
— CNBC’s Jacob Pramuk contributed to This specific report.