President Trump's forthcoming tax reform plan will include a break for child care, his daughter Ivanka said Tuesday.
The child care tax break, which Ivanka championed on the campaign trail, would be part of the tax reform blueprint that President Trump has said he will announce Wednesday.
As of Tuesday afternoon, reports indicated that the outline Trump is set to put out will re-create his campaign tax proposals in key respects. In addition to a tax credit for child care expenses, Trump is expected to recommend a 15 percent corporate tax rate. He also has set a goal of an individual top tax rate of 37 percent, higher than the 33 percent he advocated in the campaign, as well as a special 15 percent tax rate for small businesses, according to the Wall Street Journal.
Some of Trump's top economic advisers were scheduled to meet with Republican congressional leaders Tuesday evening to discuss the proposal.
While the low business tax rates likely would preclude Democratic support for tax reform, Ivanka Trump said Tuesday on a trip to Germany that the tax break would be meant to build bipartisan support, according to CNN.
Yet all of the provisions that the White House has suggested it might include in its principles would lower tax revenue, complicating the legislative and procedural path for tax reform.
In contrast, House Republicans have sought to put forward a tax plan that would come close to revenue neutrality, meaning that it would not add to the deficit.
The version of the child care deduction proposed on the campaign would reduce revenue by $500 billion over 10 years, the nonpartisan Tax Foundation estimated at the time. Various outside analyses found that President Trump's plan, as a whole, would lose multiple trillions of dollars for the federal government in a decade. That plan, however, contained many provisions, such as the top individual tax rate, that are sure to change.
In recent days, though, Treasury Secretary Steven Mnuchin has maintained that Trump's tax reform will pay for itself when the effects it will have on economic growth are taken into account.