Drew Wilson
Conservative group Americans for Prosperity blasted an amendment to the Republican tax reform bill put forward by U.S. Sens. Marco Rubio and Mike Lee, saying it would “undermine” the plan’s supposed benefit to families.
The Rubio-Lee amendment sets the corporate tax rate at 22 percent, compared to the 20 percent rate in the current GOP tax bill.
The group said 20 percent is the line for a “pro-growth, competitive” rate.
“The Rubio-Lee Amendment breaks the promise of the unified framework at the 11th hour by raising the corporate tax rate to an unacceptable level. Worse, it does so in exchange for a tax credit that doesn’t directly achieve the economic growth that families need. American families would reap greater economic benefits from a level playing field, cutting of special-interest handouts, and low, flat rates for individuals and businesses alike,” said AFP President Tim Phillips.
“President Donald Trump, the House and two Senate committees have certified that lowering the corporate tax rate to 20 percent is crucial to achieve the goals of creating jobs, spurring growth and expanding opportunities for all Americans. We continue to strongly support the Tax Cuts and Jobs Act and urge lawmakers to oppose any attempt to deviate from that plan with amendments that would increase the corporate tax rate above 20 percent,” he continued.
Rubio said the slightly higher rate, still a 13 percent cut from the current rate, would “allow us to do the pro-worker reform that we desperately need.”
The Rubio and Lee plan would extend child tax credits to lower income families, many of whom do not pay federal income tax and instead are primarily taxed via payroll taxes.
The current Republican tax plan would double the child tax credit from $1,000 per child to $2,000 per child, which would make little to no impact on lower-income families.
One comment
Mike
December 1, 2017 at 2:39 am
Sen. Rubion is absolutely correct. In fact his campaign pledge of a cut to 25% was spot on. We have full employment. We also have a market at all time highs. We don’t need such a deep cut. This growth period will end,as they always do. The time for a deeper cut will come in the next recession along with FED rate cuts, provided they get to somewhere near normal rates by then.They very well may not, making “dry powder” for future tax cuts all that more important. We do need more competitive rates and a cut to 25% would’ve sufficed at this time.The cut to 20% should’ve come when the economy slows again. Instead we’ll create another stock market bubble and go through another bust.
Foolish.
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