The Republicans had passed the new tax law in December 2007. Earlier this week, President Trump said that he needed a phase two of the tax cuts that were passed. Trump spoke about this when he was visiting the White House Rep. Kevin Brady, R-Texas. The event was attended by other lawmakers including GOP Sens. John Cornyn and Ted Cruz.
Trump jokes about additional tax cuts while Brady mentions it as a serious possibility
Trump managed to draw some laughter from the crowd as he questioned Brady on whether he plans for additional tax cuts. He talked about the seriousness with which they were considering the issue.
The new tax law has cut down the rate of corporate tax by a figure of 21 percent and individual taxes have been temporarily reduced for the most part.
These cuts have given rise to speculations about an impending budget deficit and several questions are being raised about glitches and loopholes in this plan.
If at all President Trump plans to take a phase two of tax cuts seriously, then a large number of questions are going to be raised about how to meet a budget deficit in the near future.
The bill was passed in December by a very small margin and under very narrow conditions. The special budget rules required only a very simple majority to pass the bill.
As of now, it is not yet clear whether the Republicans are serious about introducing further tax cuts.
GOP lawmakers have said that there is a possibility of further tax cuts, but nothing is quite certain yet. Despite Trump's lighthearted approach in the event, Brady added a note of seriousness by telling the media that he thinks there is a scope for further improvement in the tax code.
Brady said that if at all further tax cuts were implemented, then the priority areas would include pension reform, employee ownership, and capital gains. Brady asked people to focus on saving more.
He emphasized that the government was not willing to wait another thirty-one years to make a reform.
Despite what Brady said, the likelihood of further tax cuts is very low. The latest tax reform was passed by a very slight margin and trying to pass further tax cuts may not go as easily as planned.