The chairman of the influential House Freedom Caucus said Thursday he opposes the Senate’s emerging plan to delay a major corporate tax cut until 2019, a sign that the GOP doesn’t yet have a clear path for passing a tax cut plan this year. Rep. Mark Meadows, R-N.C., leads a faction of more than three dozen conservatives whose support for a final tax bill will be critical for passage in the House.
The House bill cuts the corporate tax rate to 20 percent, effective immediately, which proponents said would stimulate economic, wage, and job growth. The phase-in approach would drastically delay growth, say opponents.
“I don’t understand the logic and I certainly can’t see why anybody would suggest it,” Meadows said.
He called the the phase-in “a nonstarter,” and said its aim might be “to play games with” the non-partisan analysis of how much the bill would cost.
There are other big differences between the House and Senate proposals. The Senate proposal would keep the estate tax, while lifting the current cap, for example.
“I think it would suggest there is a whole lot of work to do in conference,” Meadows said. “There are some things that would be non-starters over here.”
Speaker Paul Ryan, R-Wis., said Thursday the two chambers would hold a conference committee over the two bills to come up with a compromise.
The Senate bill will be unveiled today, while the House completes a markup of its own proposal in the House Ways and Means Committee. The House bill is expected to hit the House floor next week.
