House Majority Leader Kevin McCarthy called criticisms that Republicans haven’t been forthcoming with their tax reform plans a “Democratic talking point” that isn’t true.
McCarthy said Sunday on Fox News Republicans have been talking about what they want in a tax reform plan, including doubling the standard deduction and lowering the corporate tax rate to near 20 percent, for years. There have been multiple attempts by GOP lawmakers to educate the public, he said.
“That is just simply a Democratic talking point because think of this: We put our framework out there before the election. We did a conference all day where every member came in and we walked them through it,” he said. “We have put out our postcard to the American people. This has been out there for a number of months sitting there and what's more important here, those that want to keep their loopholes, yeah, they will argue and pay lobbyists a lot of money, but this is exactly why this president won the election, because he's listened to the middle class.
“He's fighting for the middle class and that's what this plan will do: create more jobs, put America competitive around the world, and think of those trillions of dollars that come back and invest in America instead of other countries.”
There is some concern from high-tax states like California and New York about the plan and whether Republicans from those states can jump on board an agreement that eliminates state and local tax deductions, or SALT. That deduction is a popular tax break for the middle class in those areas.
McCarthy said Ways and Means Committee Chairman Kevin Brady is working on a proposal he thinks lawmakers in those states will like.
“If you double the standard deductions, if you lower the rates and you eliminate [the alternative minimum tax], if people look at the overall tax plan and they live in those states, they're going to like the final outcome of what it deals with, especially if you're that middle-income, hard-working American,” he said.
“You're going to get a tax savings in the process and if you're eliminating the AMT, that really offsets what people are doing when it comes to SALT. So we're looking at property tax, because some of the states have very high property tax, and Kevin Brady is going to have something coming forward that the majority of those members are going to like.”