US Republicans unveil further tax cuts

10 Sep 18

Republicans in the US congress are poised to unveil a new round of tax cuts this week in an effort to boost their appeal to voters ahead of elections in November.

Lawmakers and strategists say the move is intended to amplify an upbeat message about the economy being promoted by Republicans, Reuters reported

The move chimes with the findings of a report by the Tax Foundation, which estimates that 1.5 million jobs would be created and wages would rise if income tax cuts in last year’s tax reform bill were made permanent, say Republicans.

“Anytime we’re talking about tax cuts and the growing economy, we’re winning,” said Matt Gorman, a spokesman for the National Republican Congressional Committee.

The latest tax package aims to supplement Donald Trump’s 2017 tax overhaul, which has added $1.5 trillion to the federal deficit by cutting taxes on US companies permanently but only included temporary individual tax cuts, which will expire after 2025.

The new legislation would add another $576bn to the deficit, even taking higher economic growth into account, the Tax Foundation said.

Moreover, experts question whether House Republican leaders can secure the 216 votes needed to pass the latest measure, given that it will widen the federal deficit further.

“Adding another several hundred billion dollars to the deficit is something that I think some Republicans are going to really think hard about,” John Gimigliano, who heads federal tax legislative and regulatory services at the audit, tax and advisory firm KPMG, told Reuters.

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