Ranking Republican on Ways & Means: 'Too Early' for Tax Cut Trump Wants

By Susan Jones | March 5, 2020 | 5:10am EST
Rep. Kevin Brady (R-Texas) (Photo by SAUL LOEB/AFP via Getty Images)
Rep. Kevin Brady (R-Texas) (Photo by SAUL LOEB/AFP via Getty Images)

(CNSNews.com) - Rep. Kevin Brady (R-Texas), the ranking member of the House Ways and Means Committee, says it's "too early" for a payroll tax cut, as proposed by President Donald Trump.

The President tweeted on Monday, ""The Democrats in the House should propose a very simple one year Payroll Tax cut. Great for the middle class, great for the USA!"

Speaking to Fox News's Neil Cavuto on Wednesday, Rep. Brady called it a "mixed" idea:

One, certainly, three to six months from now, we will see our small- and medium-sized businesses that may have some capital-type issues because of this health care challenge. We don't know that yet.

So, at that point, I think a payroll tax could actually help inject some cash flow to both consumers and them. On the other hand, it doesn't change behavior. When it's been used as stimulus before, it really hasn't achieved that.

And so I think maybe my best advice, just in totality, is, one, let's get the diagnosis right in the economy as we watch what happens on the supply chains, which industries are affected, how it affects those small and medium-sized businesses.

Secondly, though, I think one thing has become very clear. Right in the president's...book here, is, we need a medicines-made-in-America strategy, where we take a look at our regulations and tax code to see what we can do to drive more of the medical development and manufacturing back here to the United States, not just for the medicines themselves, but the technologies, the treatments, the equipment that goes with it, yes.

Cavuto followed up, telling Brady, "It sounds like you would part with the president on this particular type of tax cut, that it's not needed right now? Is that it?

"Well, too early," Brady said. "I guess I would say, let's diagnose the economy a little clearer here, because it still is in flux.

"We have had, as you know, 10 of these major health challenges the last three decades. There is some familiarity with them. Let's give the chance to look at this," Brady said.

"The other thing, I do think we look at moving manufacturing of medicines back. We can look at a lower business rate to bring those manufacturing plants here. I think we should be muscling up a research and development tax credit anyway to become a lot more innovative"

Rep. Brady was among the 415 House members voting to approve an $8 billion emergency spending package to deal with various aspects of the coronavirus outbreak in the United States.

Only two House members voted against the $8 billion -- Republican Reps. Andy Biggs of Arizona and Ken Buck of Colorado.





 

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