The White House continues to work on a tax-cut plan in hope that Republican lawmakers will be in control of Congress after the Y 2020 elections, President Trump’s top economic aide Larry Kudlow said.
“I am still running a process of Tax Cuts 2.0,” Mr. Kudlow said in a TV interview Wednesday. “We’re many months away.”
The plan will released later in the Summer, in time to be a campaign issue ahead of the Y 2020 election.
Mr. Kudlow is playing a lead role, and congressional Republicans have engaged in the early planning.
Republicans are hoping to run on the message of a strong economy and draw comparisons with their Democratic rivals, who are proposing tax increases to pay for expanded government services.
Mr. Kudlow said the administration is getting guidance from Representative Kevin Brady, the Top Republican on the House Ways and Means Committee who helped pass the Y 2017 tax cuts, which slashed the corporate tax rate to 21% and cut individual taxes.
Mr. Brady, who would likely be the Chairman of the Ways and Means Committee if Republicans are able to re-gain a House majority, has said his Top priority is to make the individual and pass-through tax cuts from the Y 2017 law permanent. Those tax cuts are set to expire in Y 2026, unless Congress takes action.
The success of President Trump’s tax plan depends on Republicans regaining control of the House and maintaining a Senate majority. House Republicans would need a net gain of approximately 20 seats in the lower chamber.
President Trump made a similar promise to cut middle-class taxes before last year’s midterm elections as House Republicans struggled to counter Democratic talking points that the Y 2017 overhaul mostly benefited the wealthy.
The President’s proposal caught Republicans off guard, and nothing advanced as Mr. Brady tried to cast it as part of a unified GOP plan to extend the Y 2017 cuts.
Bruce WD Barren, Chairman of The EMCO /Hanover Group, said that he believes that a wide range of proposals were being reviewed for potential inclusion in the President Trump’s 2.0 package, and they will go beyond tax cuts to include broader economic policy initiatives.
Mr. Barren said, “A growth agenda with the most pro-growth tax code is important. That means more middle-class tax cuts, which is a key component to continued economic growth and further reduction in unemployment. It will also rebuild the employment class-loses suffered in the prior Administration.”
In the past President Trump has floated ideas including reducing the payroll tax and indexing capital gains to inflation, among other things.
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