Conservatives praised President Donald Trump's tax plan Wednesday, with Senate Majority Leader Mitch McConnell saying "getting tax rates down for American companies, big and small, will create new jobs and make the United States a more inviting place to do business."
"The principles outlined by the Trump administration [Wednesday] will serve as critical guideposts for Congress and the administration as we work together to overhaul the American tax system and ensure middle-class families and job creators are better positioned for the 21st century economy," the Kentucky Republican said.
McConnell's statement was endorsed by House Speaker Paul Ryan of Wisconsin, Senate Finance Committee Chairman Orrin Hatch of Utah and House Ways and Means Committee Chairman Kevin Brady of Texas.
President Trump's plan would slash tax rates for businesses and on overseas corporate profits returned to the country, while raising standard deductions for individuals. The blueprint also would repeal inheritance taxes on estates and simplify tax returns.
However, the outline does not offer ways for raising new revenues and could possibly add billions of dollars to the federal deficit.
Treasury Secretary Steve Mnuchin and Trump economic adviser Gary Cohn introduced the effort at the White House.
"Our objective is to make U.S. businesses the most competitive in the world," Mnuchin said. "The president is determined to unleash economic growth for businesses."
McConnell and the other Republican leaders said in their statement the proposed lowered tax rates "for individuals and families will allow them to keep more of their hard-earned money and empower them to invest more in their future.
"With an eye toward fairness and simplicity, we're confident we can rebuild our tax code in a way that will grow our economy, better promote savings and investment, provide our job creators with a competitive advantage, and bring prosperity to all Americans," they said.
Senate Majority Whip John Cornyn of Texas called on Democrats to support Trump's plan.
"We know our tax code is way too complicated," he said. "It's riddled with loopholes, inconsistencies, and provisions that impede job creation.
"Pro-growth tax reform should be our goal – and it's something that's united Republicans and Democrats in the past.
"There is no reason why we shouldn't be united again in accomplishing that tax reform," Cornyn said.
Several conservative watchdog groups also lauded President Trump's tax outline.
"President Trump has re-energized the drive for fundamental tax reform that creates growth and jobs," said Grover Norquist, founder and president of Americans for Tax Reform. "The plan cuts taxes for businesses and individuals and simplifies the code so Americans can file on a postcard.
"Reducing taxes on all businesses down to 15 percent will turbocharge the economy."
David McIntosh, president of the Club for Growth, said "cutting rates and eliminating deductions will put the U.S. squarely on the path of sustained economic growth.
"The Trump administration's tax-reform proposal is massively pro-growth. Allowing small and mid-size businesses to use a new 15 percent business tax rate is crucial to that growth.
"This is the tax plan that the American people supported when they elected President Trump," McIntosh said, "so House Republicans would do well to give it their full support."
Reuters contributed to this report.
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