Manufacturing Leadership by ANVL licensed under CC.
Today on CNBC’s SquawkBox, Ways and Means Chairman Congressman Jason Smith said:
“The way you provide tax relief is, you cut tax rates.”
Here is the key exchange:
CNBC Joe Kernan: “Is it possible that we see – when we do extend the 2017 bill – is it possible that the top rate goes back to 39.6% from 37% — have you heard that that might happen, to pay for some other things, other, of the President’s priorities?”
Ways and Means Chairman Jason Smith: “So Joe, everyone asks about every single provision. And what I say regardless of what the question is: is that we are looking at every single provision of the tax code. And that’s in fact what we are doing. We are going to create a tax code that grows the economy, that grows wages, is the focus to help deliver tax relief for America. The way you provide tax relief is, you cut tax rates.”
Kernan: “If you let it go up to 39.6% — you are cutting taxes on tips and overtime and things like that – but you would be raising taxes on a lot of small businesses.”
Smith: “We will provide a pro-growth tax policy that cuts the taxes for small businesses, working families, and farmers.”
President Trump on Tuesday also re-stated his longstanding vow to make the Trump tax cuts permanent.
Trump also made clear he wants his tax cuts made permanent across the board:
President Trump in his Joint Address to Congress on March 4: [Video]
“We’re seeking permanent income tax cuts all across the board.”
“And the next phase of our plan to deliver the greatest economy in history is for this Congress to pass tax cuts for everybody. They’re in there. They’re waiting for you to vote.”
On the campaig trail, Trump also said:
“Instead of a Biden tax hike, I’ll give you a Trump middle class, upper class, lower class, business class, big tax cut.”
Trump also pledged:
“I will make the Trump tax cuts permanent. You know they expire in a year. And we will cut your taxes even more than that.”
