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Mulvaney: Don't Dismiss Tax Bill Based on One Report

(Fox Business' "Mornings With Maria")

By    |   Tuesday, 21 November 2017 11:12 AM

White House budget chief Mick Mulvaney on Tuesday dismissed claims by the bipartisan Tax Policy Center showing the GOP tax bill will allow the "largest cuts" for higher-income Americans, and taxes will go up for many until 2027.

"I think whenever you get a report from an outside third party, it is valuable to look at who they are," Mulvaney, who heads the Office of Management and Budget, told Fox Business' Maria Bartiromo.

"They are a joint venture between the Brookings Institution and the Urban Institute, not the two most right-wing groups in the city," Mulvaney said.

According to its report released Monday, the Tax Policy Center said it finds the GOP tax bill would, if passed, reduce taxes on average for all income groups in both 2019 and 2025, but in general, "the largest cuts, as a share of income going to taxpayers in the 95th to 99th percentiles of the income distribution."

In addition, 10 years from now, in 2027, the bill would make taxes "rise modestly" for lower income Americans, change little for middle-income groups, and decrease for wealthier Americans.

"Compared to current law, nine percent of taxpayers would pay more in 2019, 12 percent in 2025, and 50 percent in 2027," the report said.

"You can't simply look at one report and say, 'oh my goodness, dismiss the plan,'" Mulvaney said in response Tuesday. "The plan is an excellent plan. The House worked really, really hard, and came up with a good couple proposals. The Senate is working as well. We are very satisfied with progress so far at the White House."

The tax bill, he added, will help alleviate issues because of the economic growth it will spark.

"We do need spending restraint," Mulvaney said. "We do need spending reduction, if we can get it. This tax policy is a discussion about the debt and the deficit.”

The White House has been "straightforward" since discussions began about tax reform, said Mulvaney, saying it believes that economic growth will help pay for the tax cuts involved.

"We are getting ready to talk about coming out at 3 percent growth next over the next 10 years," said Mulvaney, adding the White House believes that with every point the gross daily product number adds is equal to $2.1 trillion dollars in revenue, "and we've got numbers, I think, that backs that up."

Mulvaney said he also believes that senators such as Arizona's Jeff Flake and John McCain, who have spoken out against Trump, will still vote for the bill if it is a good one and creates good policy, as they will "vote on the substance of the matter, not their relationship with the president."

Economic growth is necessary at this point, said Mulvaney, and that makes tax policy a priority.

"We need that growth to help reduce the size of the deficit long term," said the budget chief. "Keep in mind, the deficit is a two-variable equation. It is revenues minus expenses, expenses greater than revenues."

Spending restraint in Washington is needed, Mulvaney continued, and will be reflected in this year's budget.

"We need more revenue so no, this tax policy, is a discussion, about the debt and deficit it is important right now," Mulvaney said.

The White House also is continuing to look at getting the military more money to meet some of its needs created by sequester cuts, and is in discussions about figuring out the ways to raise spending caps, said Mulvaney, in hopes of driving one of the main priorities, spending money on U.S. defense.

"I appreciate the general situation we recognize, the deficiencies that we have," Mulvaney said.  

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White House budget chief Mick Mulvaney on Tuesday dismissed claims by the bipartisan Tax Policy Center showing the GOP tax bill will allow the "largest cuts" for higher-income Americans, and that taxes will go up for many until 2027.
mick mulvaney, white house, budget chief, tax policy center, tax bill
Tuesday, 21 November 2017 11:12 AM
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