Republicans laud stimulus of $1.5 trillion tax overhaul plan

WASHINGTON – Republicans on Sunday united behind the $1.5 trillion proposed overhaul of the tax code that the Senate passed along party lines early Saturday.

The tax overhaul would affect individuals, families and businesses and increase the national debt. The House passed its own version, and now the Senate and House must iron out differences between their tax bills with the goal of having US President Donald Trump sign the final version by Christmas.

Sen. Bob Corker, R-Tenn., was the only GOP member to vote against it.

Senate Majority Leader Mitch McConnell told ABC’s This Week that the House and Senate will likely come to agreement on a final bill.

“I’m very optimistic about it,” McConnell said.

Sen. Susan Collins, R-Maine, told NBC’s Meet the Press that she expects the tax cuts to stimulate the economy.

“That does create more revenue” for the US Treasury, she said.

A growing economy will be necessary to offset the $1 trillion deficit the tax overhaul is expected to cause, according to a non-partisan estimate.

Among the key changes: the standard deduction, used by about 70% of US taxpayers, would nearly double to $12,000 for individuals and $24,000 for couples. The Senate and House bills both cut the corporate tax rate to 20% from 35%, but the Senate version delays the cut for one year. Trump has said the corporate rate could be dropped to 22%.

“My preference is 20%,” Sen. John Barrasso, R-Wyo., told FOX News on Sunday.

Money will come rushing into the United States for investment because of the corporate tax cut, Barrasso predicted.

Meanwhile, Congress is trying to pass a spending bill so that the federal government will not shut down at the end of this week. McConnell predicted the sides will reach a deal before Friday’s deadline.

“There’s not going to be a government shutdown,” McConnell said. “It’s just not going to happen.”

Barrasso also said it was necessary to reach a deal to avoid a government shutdown. He criticized Democratic leaders Rep. Nancy Pelosi of California and Sen. Chuck Schumer of New York as being “childish” for refusing to meet with Trump last week on the issue.

Pelosi and Schumer canceled a planned White House meeting to discuss a possible deal on immigration after Trump tweeted hours ahead of the get-together that he didn’t see any possibility of a deal. He then made a point of allowing cameras in to the room in the White House where the meeting was to take place to show two empty chairs on either side of him.