‘Gimmick’: Mulvaney Explains Why Corporate Tax Cuts Are Permanent But Individual Cuts Are Not

By Susan Jones | November 20, 2017 | 8:44 AM EST

White House Budget Director Mick Mulvaney (Photo: Screen grab/C-SPAN)

(CNSNews.com) - White House Budget Director Mick Mulvaney said the "strange rules of the Senate" explain why individual tax cuts would expire ten years from now, while the corporate tax cuts would be permanent in the bill now under consideration.

He told NBC's "Meet the Press," hosted on Sunday by Andrea Mitchell, that the bill was written to "game the system."

 

Keep in mind one of the reasons, Andrea, that a lot of this different pieces and parts expire during the course of the ten years is simply to force this bill into the strange rules in the Senate. We're using what's called the Byrd rule in the Senate. We're using reconciliation so that we only need 50 votes in the Senate instead of 60.

In order to do that, the certain proposals can only have certain economic impact. And one of the ways to game the system is to make things expire. The Bush tax cuts back in early 2000 did the same thing. They supposedly would expire after nine years.

What we tell folks is this, if it's good policy, it will become permanent. If it's bad policy, it will become temporary. That's just the way that it is. So this is done more to force the, shoe horn the bill into the rules than because we think it's good policy.

Mitchell said if Republicans really do intend to make the individual tax cuts permanent, it will "explode the deficit" even more, well beyond the $1.5 trillion estimated by the Congressional Budget Office.

 

Mulvaney responded that the CBO score is "100 percent static" and does not consider the possible economic impact of lowering taxes.

"So we're absolutely confident that this will lead to economic growth. It's built into our models of the Office of Management and Budget. The Council of Economic Advisers looks at it as well.

"But yeah, to the extent it's a gimmick, a lot of this is a gimmick. Obamacare was a gimmick to get through these rules in the Senate. And what you should really be looking at is the policies themselves, and we think these are excellent policies."

He noted that since President Trump was elected, the economy's grown at a 3-percent rate in each of the last two quarters: "We're looking now at probably having 3 percent in the fourth quarter. That's even with the hurricanes in the middle. So we do think we're actually there.

"Now, granted we have to have additional policy changes to make that sustainable, and tax reform is part of that."


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