Saturday, October 7, 2017

Rand Paul is the Only Person in the Senate that May Be Able to Prevent New Taxes as a Result of Tax Reform

President Trump's tax reform bill is in serious trouble. The two clowns Cohn and Mnuchin have put together a plan that has no chance of passing in its present form.

John Carney explains:
House Republicans took an important step forward for tax reform on Thursday when they passed the long-awaited budget resolution. But the GOP may now find it has walked into a minefield.
The tax reform proposal was intended to be a consensus document, reflecting the views of both the Trump White House, Senate Republicans, and House Republicans. It was put together behind closed doors for months by the so-called Big Six: Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn representing the White House, House Ways and Means Committee chair Kevin Brady, Senate Finance Committee chair Orrin Hatch, House Speaker Paul Ryan, and Senate Majority Leader Mitch McConnell. They called their plan a “unified framework.”

But it is quickly emerging that
Republicans are anything but unified on tax reform....

To make tax reform revenue neutral, Republicans would have to raise other taxes or pair tax cuts with spending reductions. The latter is all but impossible as it would vastly complicate passage of the bill and would require lawmakers to vote against popular spending items or propose cuts to entitlements like Social Security, something Trump has said he would oppose.
So the only solution, from an inside the Beltway perspective, is to raise taxes.

Here's where Senator Rand Paul comes in. Carney again:
So what about trying to raise other taxes? That would likely alienate Senator Rand Paul, who has already complained that the Big Six framework could raise taxes on many middle-class families. Paul has said he will await “final details” before making a decision. But he has clearly signalled that he will oppose any attempt to make up the deficits that might be created by an overhaul’s tax cuts with tax hikes on middle-class Americans.
With the GOP's slim majority in the Senate, for tax reform to pass, Rand's vote may be crucial and as it stands now, he has made clear he will not support a tax reform package that raises taxes on any group. He is the only Senator with this position. He is the only one we can count on.


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