- President Trump again brings up a “phase two” of tax cuts.
- The GOP law passed in December permanently chops taxes for corporations and temporarily reduces the tax rate for most individuals.
President Donald Trump said again Monday he wants a “phase two” of tax cuts on top of the law Republicans passed in December.
Speaking as the World Series champion Houston Astros visited the White House, Trump asked Rep. Kevin Brady, R-Texas, whether he planned to cut taxes further. Brady and GOP Sens. John Cornyn and Ted Cruz were among the lawmakers from Texas attending the event.
“Kevin, are we going for an additional tax cut, I understand?” Trump asked, drawing laughter from those gathered for the event. “Huh? He’s the king of those tax cuts, yeah? We’re going to do a phase two, I’m hearing that. You hear that, John and Ted? Phase two. We’re actually very serious about that, Kevin. So, it’s good.”
The law passed in December permanently chopped the corporate tax rate to 21 percent and temporarily reduced taxes on most individuals. The plan sparked concerns about growing budget deficits. Now there are questions about the technical glitches and loopholes left by the hastily passed plan.
If Trump and Republicans seriously pursue more tax reductions, it would spark more questions about how to offset the lost revenues. When they passed the bill in December, Senate Republicans did so by the narrowest of margins under special budget rules requiring only a simple majority. It is unclear whether congressional Republican leaders are serious about further tax cuts.