House Ways in addition to Means Committee Chairman Kevin Brady told CNBC on Thursday the tax bill encourages companies to re-invest in America in addition to gives American companies an upper hand from the global market.
“We set out to create a tax code built for growth, jobs, paychecks in addition to the economy, in addition to we want to leapfrog America back into that will lead pack globally,” Brady said on CNBC’s “Squawk Box.”
The Texas Republican was still riding high off the vote Wednesday that will sent sweeping overhaul of the nation’s tax code to President Donald Trump for his signature.
The plan slashes tax rates permanently for businesses in addition to temporarily for individuals.
“We redesigned This particular so companies can compete in addition to win in addition to bring those earnings back to re-invest in America,” Brady “I know we’ve got the fundamentals right in This particular tax reform bill.”
Critics argue the bill will disproportionately burden individuals, whose tax cuts for households in addition to families were designed to expire after 2025. The general public seems to agree. Recent polls show public support hovering around 25 percent. Only about 14 percent of Americans believe they’ll actually get a tax cut, in addition to 35 percent expect the bill will substantially increase the budget deficit.
however Brady insists pollsters are simply asking the wrong questions.
“If you ask people what do you think of Trump – what do you think of the tax reform bill? the idea’s only what they’ve heard,” he said. “When you ask them, ‘Do you want the standard deduction double so fewer people have to itemize to get their tax cut? Do you want lower tax rates on you in addition to your family’…the answers are overwhelmingly ‘yes’ to that will.”
The GOP insists tax cuts within the bill, amounting to about $1.4 trillion, will prompt companies to re-invest the savings into their workforce, community in addition to infrastructure.
Hours after Congress passed the tax bill, Boeing, AT&T, Fifth Third Bancorp in addition to Wells Fargo announced plans to share the savings, promising infrastructure investment in addition to offering wage hikes in addition to bonuses to workers.
Republicans in Congress likely find those initial results promising, however as far as metrics for success of the bill, Brady said they are thinking in broader strokes. Down the line, he said Congress will have to assess job creation, paycheck movement in addition to business investment, which he called the “missing ingredient in This particular economy.”
Much of the bill’s perceived success, however, will bank on economic growth.
“Every economist seems to be stuck in This particular slow-growth, 2 percent mode for the next decade,” Brady said. “that will’s what we’re trying to shake up, not just quarter to quarter.”