Conservatives slam proposal by GOP to automatically raise taxes
WASHINGTON — Conservative groups and lawmakers are lining up against a proposal by Senate Republicans to impose automatic tax increases on millions of Americans — if their sweeping tax package doesn’t grow the economy and raise tax revenues as much as projected.
The opposition comes as the Senate is expected to vote Wednesday to start debating the tax package. It could doom a delicately negotiated proposal aimed at mollifying deficit hawks who worry that tax cuts for businesses and individuals could add trillions to the nation’s mounting national debt.
But tucking a potential tax increase into the tax cut bill isn’t sitting well with conser- vatives.
“Automatic tax increases are a special level of insanity,” said Rep. Trent Franks, R-Ariz. “I don’t think it survives.”
Rep. Jeb Hensarling, R-Texas, called the proposal “a uniquely bad idea,” espe- cially if revenues fall short because of an unforeseen slowdown in the economy.
Rep. Mark Sanford, R-S.C., said the threat of an auto- matic tax increase would make businesses reluctant to invest.
“If businesses or individuals have no ability to plan on a rate, it makes an investment decision, for instance, very, very difficult,” Sanford said.
The pro posal is being pushed by Republican Sens. Bob Corker of Tennessee, James Lankford of Oklahoma and Jeff Flake of Arizona. It is picking up steam in the GOP-controlled Senate, even if it could land with a thud in the GOP-controlled House.
Corker said he has received assurances from Republican Senate leaders and the White House that some sort of “trigger” would be added to the Senate package that would increase taxes if the econ- the proposal said they are omy doesn’t grow — and tax resigned to including it. revenues don’t increase — as “We’re probably going to much as projected. have it, but I would prefer not
“While we are still work- to have it,” said Sen. Orrin ing to finalize the details, I Hatch, R-Utah, chairman of am encouraged by our disthe tax-writing Finance Comcussions,” Corker said. mittee.
Senators are also considSen. Dean Heller, R-Nev., ering a companion proposal said, “Personally I prefer from Sen. Ted Cruz, R-Texas, not to have a trigger, but I that would automatically cut wouldn’t vote against the taxes further if the economy bill. We’ll do what we can grows faster than expected. do to get Bob Corker’s vote.”
The overall package is a An estimate by congresblend of generous tax cuts sional analysts says the Senfor businesses and more mod- ate tax bill would add $1.4 est tax cuts for families and trillion to the budget deficit individuals. It would mark over the next decade. GOP the first time in 31 years that leaders dispute the projecCongress has overhauled the tion, saying tax cuts will spur tax code, making it the big- economic growth, reducing gest legislative achievement the hit on the deficit. of President Donald Trump’s Many economists disagree first year in office. with such optimistic projec
In crafting the bill, Senate tions. The trigger would be a Majority Leader Mitch McCo- way for senators to test their nnell, R-Ky., has been trying economic assumptions, with to balance sometimes comreal consequences if they peting interests with very are wrong. little room for error. SenA number of conservaate Republicans hold a slim tive groups that are usually 52-48 majority in the Senate, allied with Republicans are meaning they can only lose slamming the idea. two votes, with Vice PresiThe U.S. Chamber of Comdent Mike Pence casting the merce issued a statement tie-breaker. calling the trigger “imprac
Democrats, who have been tical, unreasonable, and excluded from crafting the unnecessary.” bill, are expected to unaniGrover Norquist, an antimously oppose it. tax guru, said, “A trigger
The trigger is one way that threatens tax hikes is Senate GOP leaders are trya self-fulfilling threat to kill ing to round up votes. Even jobs.”
GOP senators who don’t love