House Republicans are sticking with their original plan for a permanent, self-financing tax reform plan, despite indications from the Trump administration that its preferences differ.
At the end of a special meeting held Sunday to discuss the House Republican plan following the introduction of Trump’s plan, Republicans on the House Ways and Means Committee responsible for writing tax law reiterated some of the principles that could clash with Trump’s ideas, especially that tax reform be permanent and not add to the debt.
“We’re committed to permanence, we’re committed to making sure this is paid for, and we’re committed to making sure we win this great debate and persuade others as well,” said Peter Roskam of Illinois, the chairman of the tax subcommittee.
Roskam emphasized that he favored a plan that doesn’t add to the deficit, telling a reporter to “look in my eyes” as he said so.
The Republicans said that their tax policy meeting scheduled for Sunday and Monday was meant to work toward consensus with the Trump administration and with Senate Republicans, and claimed that there was already broad agreement tax reform. They are trying to “get these themes togother and get everyone working on the same page,” said Roskam.
Nevertheless, the Trump administration’s plan, which was not more than one page of bullet points, appears as though it would not be close to achieving revenue-neutrality. One outside estimate from the Committee for a Responsible Federal Budget suggested it would add $3 trillion to $7 trillion to the federal debt over a decade. Treasury Secretary Steven Mnuchin, nevertheless, has stated that the plan is meant to pay for itself by cutting tax breaks and boosting economic growth, although he has suggested that other sources of economic growth could also be included in the calculation, not just better tax policy.
Furthermore, the administration has suggested that it would be open to a temporary tax cut, if that is all that is achievable given congressional procedural requirements.
House Republicans have not given up on the idea of a border adjustment tax, an idea the White House has been ambivalent about and left out of its reform outline.
“We’ve been listening closely on how to make the refinements and how to bring that to the table in negotiations in White House and the Senate,” said Kevin Brady of Texas, the chairman of the committee.
Neither the White House nor Senate Republicans took part in Sunday’s meeting.
