Budget Director Mulvaney: 'Tax Reform...That's What's Going to Save the Country'

By Susan Jones | September 13, 2017 | 7:27 AM EDT

White House Budget Director said on Tuesday, Sept. 12, 2017 that the Trump administration's goal is to get the biggest corporate tax reduction that can pass Congress, and it doesn't have to be revenue-neutral. (Screen grab from Fox News)

(CNSNews.com) – President Trump is launching an all-out effort to move tax reform through Congress, quickly.

In two tweets on Wednesday morning,  President Trump urged Congress to get going: "The approval process for the biggest Tax Cut & Tax Reform package in the history of our country will soon begin. Move fast Congress!" the president wrote.

And then: "With Irma and Harvey devastation, Tax Cuts and Tax Reform is needed more than ever before. Go Congress, go!"

The president wants the biggest corporate tax cut he can get, and it doesn’t have to be revenue-neutral, White House Budget Director Mick Mulvaney told Fox News Tuesday evening.

I know the president keeps pushing Congress to go faster. He's frustrated how slow it’s been going, and he’s pushing them just today to try and get the Ways and Means Committee, the Finance Committee in the Senate, to go faster.

So I think that’s where you’re going to see all of our attention.  It’s part of the reason that he struck that deal last week on the debt ceiling and the C.R. to sort of clear the decks. 

It’s tax reform, tax reform, tax reform. Because that's what's going to save the country.

Fox News’s Bret Baier asked Mulvaney if it’s realistic to expect Democrats to along with a 15 percent corporate tax rate.

“Hope so,” Mulvaney said. “It's what we've been pushing for from the very beginning. Keep in mind, we went from having the lowest corporate tax rate in the world to now the highest.

“So the president’s still very much committed to trying to get that 15 percent. That said, at the end of the day, we'll take the very best tax package we can, that can actually pass. 

"The president doesn't get to wave a magic wand and do everything that he wants," Mulvaney continued. "So what we’re hoping for is that we can get as close to that 15 percent as we can, because the closer we get to the 15 percent, the better the impact on the economy, the more growth, the more opportunity, the more jobs. And that’s what’s driving all of this.”

Mulvaney also said tax reform should not be revenue-neutral:

“Whether it will be revenue neutral, I hope not. We need as big and as dramatic a tax reduction and tax reform as we possibly can get. And I think If we look at this through that static model and say, ‘Well, we're going to have to raise money over here to make up for taxes foregone over there,’ we will never get the size of the tax reductions and tax reforms that we need.” 

Mulvaney said the goal of tax reform is to “unleash the American economy,” getting it back to sustained 3 percent annual growth.

“And we think that a revenue neutral, sort of a fiddling along the edges, on the margins of the tax bill is not the way to do that.”

Senate Minority Leader Chuck Schumer (D-N.Y.) said on Tuesday that Democrats want to achieve tax reform -- but only in a way "that doesn't sacrifice our principles or sell out working and middle-class families to accomplish it."

Schumer said Democrats will support the Republican tax reform plan, but only if it meets "three basic principles" laid out by Democrats, including:

-- No tax cuts for the wealthiest one percent of Americans, and no increased tax burden on the middle class.

-- Tax reform legislation must go through regular order, so the product that emerges from committee will be bipartisan.

-- And tax reform must not add to the deficit. In other words, it should be revenue-neutral, something that Mulvaney rejected.

Schumer said the "hard right wing" of the Republican Party wants to cut taxes "to starve the government of revenues," then reduce deficits by cutting Social Security, Medicare and Medicaid.

"We Democrats are not going to be a part of that cynical strategy," Schumer said. "And if Donald Trump is going to stick to his promise to not cut Medicare, Medicaid or Social Security, he shouldn't be either."

Democrats are taking the line that the Republican tax cut plan benefits the very rich at the expense of the middle class by eliminating the estate tax.


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