Trump says there is ‘great spirit’ for tax cuts

Republicans worry about deficit; Dems want middle-class aid

President Trump WASHINGTON and aides expressed confidence Sunday that they have the votes for a major overhaul of the tax system, despite a few warnings from lawmakers about certain aspects of the plan.

“Our economy cannot take off like it should unless we transform our outdated, complex and burdensome tax code, and that is exactly what we are proposing to do,” Trump said in an oped for USA TODAY.

In an interview broadcast Sunday on Fox News, Trump said the legislative setbacks suffered by him and Republicans during their efforts to pass a health care plan won’t affect the prospects of a tax cut.

“I want to get it by the end of the year, but I’d be very disappointed if it took that long,” Trump told Fox Business Network’s Maria Bartiromo.

“So there’s a great spirit for it, people want to see it, and I call it tax cuts. It is tax reform also, but I call it tax cuts. It’ll be the biggest cuts ever in the history of this country,” he said.

In Congress, some Republicans expressed concern that massive tax cuts would explode budget deficits, and Democrats said they will fight any bill that would benefit the wealthy at the expense of the middle class.

Sen. Sherrod Brown, D- Ohio, said on CNN’s State of the Union that Democrats would work with Trump on a tax plan that benefits the middle class and working families but oppose him if he wants to help only rich people. Brown said Trump is at a “fork in the road” when it comes to taxes and relations with Democrats.

Lawmakers have cited projections that Trump’s proposed tax cuts would increase budget deficits by up to $1.5 trillion over 10 years.

Senate Majority Leader Mitch McConnell, R-Ky., who has long argued that tax changes should be “revenue neutral” and not add to budget deficits, told CNN that growth generated by the tax cuts would offset deficit increases.

McConnell avoided commenting on reports that some officials want to reduce the limits on 401(k) contributions.

“We’re going to score a big legislative accomplishment here on tax reform in the near future,” McConnell said on CNN’s State of the Union.

Trump and aides said the elimination of certain tax breaks would be offset by a doubling of the standard deduction to the first $24,000 of annual income.

Some members of Congress, including Rep. Mark Meadows, R-N.C., chairman of the conservative House Freedom Caucus, object to reports that some negotiators seek a new top tax rate aimed at very wealthy taxpayers.

Mick Mulvaney, director of the Office of Management and Budget, told Fox News Sunday that the administration is “agnostic” on the idea of a new top rate and will wait to see what Congress does.

“Look, we want the very best tax package that can actually pass,” Mulvaney said. “And if there’s things the House has to do or the Senate has to do to get that last vote or two to get across the finish line, that’s up to them.”

Republicans, who have majorities in the House and Senate, hope to avoid what happened this year on health care.

“I call it tax cuts. It is tax reform also, but I call it tax cuts. It’ll be the biggest cuts ever in the history of this country.” President Trump