Democrats in Congress are trying to pass a $1 trillion tax cut bill that includes a $10 billion cut to the child tax credit, but they’re facing an obstacle — the fact that a majority of Americans don’t want to be paying more.
The CBO says the bill would increase the deficit by $2.5 trillion over the next decade, while Democrats say it would increase it by $1.5.
That’s a tough math to square.
“There are many people who think the tax cuts are the only way to raise revenue,” said Sen. Patty Murray, D-Wash., in an interview with ABC News’ George Stephanopoulos on “This Week.”
“And so I think it’s important that we get to the heart of this debate.”
Murray and House Speaker Paul Ryan have been discussing how to address the deficit and debt crisis.
A new bill is in the works, and Murray is hoping to unveil it at a press conference this week.
A bipartisan group of senators, led by Sen. Ron Wyden, D.
Ore., is pushing for a plan that would offer relief to struggling middle class families.
But there’s one key point missing from the legislation: tax cuts for the wealthy.
It’s unclear what kind of cuts the Trump administration will make to the tax code in the new bill, and the White House has yet to say anything on the topic.
The nonpartisan Tax Policy Center estimated last month that the plan would add $2 trillion to the deficit over 10 years, and that’s without taking into account the $1 billion child tax break, which has been a favorite of the wealthy and corporations for decades.
Some Republican lawmakers are pushing for more aggressive tax cuts, but not everyone is willing to give up a tax break for those with the most to lose.
The Senate GOP bill would lower the top rate to 39.6 percent from the current 39.7 percent.
That would be the lowest rate for corporations in history, and would take $1,000 off the top of everyone’s paychecks.
But some economists have argued that lowering the top tax rate could actually lead to more tax cuts.
“The reason I’m opposed to a top tax cut is that it’s not about tax cuts,” said House Ways and Means Committee Chairman Kevin Brady, R-Texas.
“It’s about helping middle class Americans.
And the idea that if you reduce your taxes to a lower rate, that somehow you’re going to get some tax cuts is just ridiculous.”
Republicans have argued they’re only looking for the best tax cuts to deliver to Americans.
That means eliminating a lot of deductions and loopholes, including the $600 deduction that lets households pay for child care.
“We’re not trying to give every taxpayer a tax cut,” said Rep. Dave Camp, R of Michigan, in an ABC News interview on “Meet the Press.”
“It is our belief that there are some tax loopholes and tax credits that we could use to get more people to pay their fair share.”
The Congressional Budget Office, a nonpartisan think tank, estimates that by 2026, the tax bill would cut taxes for 95 million people.
“This is going be a tax bill that’s going to raise taxes for 99 percent of Americans, but that’s just the start,” Camp said.
“You’re going have to get down to the bottom of this.
We’re not going to see the middle class hit the bottom.”
The GOP plan also includes several other measures aimed at helping the middle classes, including a reduction in the corporate tax rate, a repeal of the estate tax and a tax credit for childless workers.
“These are tax cuts that the middle-class and working families will be the ones to lose out on, because they are not going in the bill,” said Camp.
“But it’s a big part of the plan.
We’ve got a whole raft of things we’re going get in this bill, but this is the one that’s supposed to benefit the middle and working class the most.”
But even if they’re not fully offset, many economists are worried about how much the tax changes would impact the middle.
“A lot of the tax plans are really about cutting the middle, and not the rich,” said David Autor, director of the Urban Institute’s Program on Taxation and Economic Policy.
“And that’s what we’re seeing in this tax bill.
It will be a huge drag on the economy and it’s going, ‘Oh, I know how much it hurts you, but I don’t care how much you pay.'”
The Tax Policy Council, an influential Washington think tank that studies the economy, said the proposed tax changes could actually hurt middle class households the most.
“If the bill increases taxes on most Americans, it will disproportionately hit the middle,” said TPC President Arthur Delaney.
“That’s where most of the economic growth and job creation has been. That is