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Trump Speech in Missouri Expected to Lay Groundwork for Tax Overhaul Trump in Missouri Lays Groundwork for Tax Overhaul but Offers No Details
(about 7 hours later)
WASHINGTON — After months of vague promises of a sweeping tax overhaul, President Trump is expected on Wednesday to begin a public push to enact the ambitious plan, which still lacks many crucial details. SPRINGFIELD, Mo. — President Trump on Wednesday pitched a sweeping tax overhaul that he said would unleash the American economy and growth to help ordinary people, promising that a vague recipe of large corporate tax cuts and individual tax reductions would boost the middle class.
In a speech in Springfield, Mo., Mr. Trump plans to lay out the case for cutting taxes for businesses and individuals and for simplifying the tax code, according to White House and congressional officials familiar with his message, who insisted on anonymity to describe it in advance. The president also plans to argue that doing so will yield economic growth, persuade companies to keep jobs and profits in the United States and allow working Americans to keep more of the money they earn. Wrapping his message in the populist rhetoric that powered his presidential campaign, Mr. Trump called for quick action from Congress on the ambitious tax plan he has promised for months, but he offered few specifics beyond a goal of a 15 percent corporate tax rate, down from 35 percent. The politically difficult legislation has yet to be drafted despite months of private negotiations between members of his administration and Republicans on Capitol Hill.
But beyond aspirational pledges and broad justifications for the deep business tax cuts he has proposed, the president is expected to offer few specifics about the plan he is pitching, people briefed on his speech said. It will be up to lawmakers in Congress to hash out the particulars of a complex and politically difficult bill, they said. “It’s time to give the American workers the pay raise that they have been looking for for many, many years,” he said.
It will be up to lawmakers in Congress to hash out the particulars of a complex and risky tax bill, administration officials say.
Still, Mr. Trump made plain the broad outlines of his vision for overhauling the tax code: a combination of deep cuts for businesses large and small as well as investors and the wealthiest, along with as reductions for middle-class people, only partially paid for by eliminating some deductions and boosting economic growth.
Democrats seized on the disconnect between Mr. Trump’s tax-cutting message and the large reductions for businesses and high earners that he has championed, vowing to fight what they called a gift to the rich cloaked in populist language.
“If the president wants to use populism to sell his tax plan, he ought to consider actually putting his money where his mouth is and putting forward a plan that puts the middle class, not the top 1 percent, first,” Senator Chuck Schumer of New York, the Democratic leader, said in a conference call organized by progressive groups that are planning an intensive advertising and advocacy campaign to oppose Mr. Trump’s tax-cutting initiative.
“This is going to be one of the biggest fights of the next three, four months, and Democrats are ready for it,” Mr. Schumer added.
Many economists, too, rejected the premise underlying Mr. Trump’s stated priorities, arguing that large corporate tax cuts would do relatively little – particularly in the near term – to boost wages or create jobs, instead helping the wealthiest Americans who can afford to invest.
“Reducing their tax burdens would have no effect on ordinary workers,” Michael Linden of the Roosevelt Institute said of corporations. “Especially in the short run, taxation of corporations falls entirely on the owners of capital, and not at all on workers and consumers.”
Private negotiations among Gary D. Cohn, Mr. Trump’s top economic adviser; Steven Mnuchin, the Treasury secretary; and Republican congressional leaders and tax writers have yet to yield a proposal embraced by the White House and Republican lawmakers. And the already long odds of completing a plan and signing it into law before year’s end appear to be dwindling.Private negotiations among Gary D. Cohn, Mr. Trump’s top economic adviser; Steven Mnuchin, the Treasury secretary; and Republican congressional leaders and tax writers have yet to yield a proposal embraced by the White House and Republican lawmakers. And the already long odds of completing a plan and signing it into law before year’s end appear to be dwindling.
Already, Mr. Trump has had to temper his ambitions. Administration officials are now discussing a plan that would cut the 35 percent corporate tax rate to 20 to 25 percent, substantially higher than the 15 percent the president called for in April. They are also weighing leaving the top individual tax rate, which they wanted to lower to 35 percent, at its current 39.6 percent level.Already, Mr. Trump has had to temper his ambitions. Administration officials are now discussing a plan that would cut the 35 percent corporate tax rate to 20 to 25 percent, substantially higher than the 15 percent the president called for in April. They are also weighing leaving the top individual tax rate, which they wanted to lower to 35 percent, at its current 39.6 percent level.
The timetable has slipped considerably, as well. Mr. Mnuchin noted last week that his goal to produce a tax proposal by August never materialized, and he declined to predict that a plan would be enacted this year.The timetable has slipped considerably, as well. Mr. Mnuchin noted last week that his goal to produce a tax proposal by August never materialized, and he declined to predict that a plan would be enacted this year.
Instead, he said that he was “very hopeful” of doing so, and that Mr. Trump was “100 percent supportive of us passing legislation this year.”Instead, he said that he was “very hopeful” of doing so, and that Mr. Trump was “100 percent supportive of us passing legislation this year.”
Whatever the odds of success, Mr. Trump has made it clear that he plans to use the tax overhaul effort to maximum political advantage, and his itinerary on Wednesday highlighted that approach. For his first stop in the public push, he chose Missouri, home to Senator Claire McCaskill, a Democrat who faces re-election next year, signaling that he will work to pressure Democrats from Republican-leaning states to back tax cuts or risk losing the support of their constituents.Whatever the odds of success, Mr. Trump has made it clear that he plans to use the tax overhaul effort to maximum political advantage, and his itinerary on Wednesday highlighted that approach. For his first stop in the public push, he chose Missouri, home to Senator Claire McCaskill, a Democrat who faces re-election next year, signaling that he will work to pressure Democrats from Republican-leaning states to back tax cuts or risk losing the support of their constituents.
In a Twitter post on Sunday, Mr. Trump noted that Missouri was a state that he “won by a lot” in the 2016 presidential race. “Dem C.M. is opposed to big tax cuts. Republican will win S!” Mr. Trump wrote, apparently referring to Ms. McCaskill and the Senate.In a Twitter post on Sunday, Mr. Trump noted that Missouri was a state that he “won by a lot” in the 2016 presidential race. “Dem C.M. is opposed to big tax cuts. Republican will win S!” Mr. Trump wrote, apparently referring to Ms. McCaskill and the Senate.