Ryan won't say tax cut won't raise deficit

Ryan won't say tax cut won't raise deficit

Speaker Paul Ryan is impaneling an informal working group of moderate Republicans and immigration hard-liners to find a solution for so-called Dreamers that the House GOP conference can support.

The Wisconsin Republican tells reporters that after speaking with President Donald Trump, he's confident the president did not strike a deal with Democratic leaders to resolve the status of immigrants brought illegally to the U.S.as kids.

Senator Joe Manchin, a West Virginia Democrat who was among the group that met with Trump Tuesday night, said during a Bloomberg Television interview Wednesday that the president stressed his plan would offer tax relief to the middle class, not a "tax cut for the rich". But he also believes that codification of former President Barack Obama's Deferred Action for Childhood Arrivals program, which President Donald Trump will end in March, must include fortified border security and heightened immigration enforcement.

"The dials are moving back and forth" on where to set rates and how to pay for tax cuts, said Representative Tom Reed, a New York Republican. (Of note here: President Trump on Thursday said that the tax package being devised will be revenue neutral once economic growth is factored in.) But absent such new ways to pay for the tax cuts, the rates being discussed are likely to meet some resistance from Republicans anxious about rising deficits.

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Both Trump and the Democratic congressional leaders, Sen. Trump has said that his goal is a 15 percent corporate rate - a goal he repeated Wednesday. "Now Trump is talking about doing bipartisan stuff with Chuck and Nancy on taxes". "It will be an enormous challenge for Congress to cut the rate below even 30 percent without losing a large amount of tax revenue".

Representative Henry Cuellar, a Texas Democrat who also met with Trump Wednesday, said the president told the group: "I'm not asking you to go out there and sell a tax cut for the rich".

Similarly, Trump's rhetoric is at odds with the math regarding his proposed reduction of seven individual tax brackets to three tax brackets of 10, 25 and 35 percent. Though that plan may be in flux, various economists have said it would indeed represent a tax cut for the highest earners in the U.S. The Tax Policy Center, a joint effort of the Urban Institute and the Brookings Institution, estimates that the tax cuts Mr. Trump outlined in broad detail this spring would increase the deficit by $7.2 trillion over the first decade. Pelosi and members of her caucus in the House have taken a similar stance, and as such, Democrats are specifically criticizing plans to repeal the estate tax and the possibility of eliminating deductions widely used by the middle class.

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