Trump tax plan gets mixed reviews in NH

Sept. 28--Trump tax plan gets mixed reviews in NH

By KEVIN LANDRIGAN

New Hampshire Union Leader

September 27. 2017 8:23PM

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President Trump discusses his tax reform proposal at an appearance in Indianapolis on Wednesday. (REUTERS/Jonathan Ernst)

-- President Donald Trump on Wednesday unveiled the most ambitious rewrite of the tax code in 30 years and right away had to fend off charges it favored the rich and would add trillions to the bloated federal deficit.

In New Hampshire, the state's new Republican governor said Trump's plan "works" for his state because it would reward gainful employment, preserve retirement security and end the shipping of jobs and capital overseas.

"Finally, by simplifying the tax code, this plan makes it easier for taxpayers to comply with, and more importantly, makes it fairer by eliminating loopholes and carve-outs that destroy trust in our tax code," said Gov. Chris Sununu.

"This is a plan that works for New Hampshire."

The all-Democratic New Hampshire congressional delegation said while it supports the principle of tax simplification, it must be a plan that's fair to the middle class and doesn't lead to an explosion of federal debt.

"As Congress considers tax legislation, my focus is going to be on New Hampshire's middle class families and small businesses. Any tax reform proposal should put them first by making the tax code simpler while eliminating tax loopholes used by large corporations and the wealthiest Americans," said U.S. Sen. Jeanne Shaheen, D-N.H.

"It's also imperative that, unlike recent partisan healthcare repeal efforts, Republican leadership must consider tax reform in an open process that allows for hearings, bipartisan cooperation and real opportunities for the American public to contribute."

The plan clearly faces an uphill battle in Congress.

It would lower corporate income tax rates, cut taxes for small businesses, reduce the top income tax rate for individuals and scrap some widely used tax breaks including one that benefits people in high-tax states dominated by Democrats.

Forged during months of talks among Trump's aides and top Republicans in Congress, the plan contains scant details about how to pay for the cuts without fueling deficits.

Speaking at an event in Indianapolis Wednesday, Trump called the plan the largest tax cut in U.S. history and "historic tax relief to the American people."

"This is a once-in-a-generation opportunity," Trump said. "We want tax reform that is pro-growth, pro-jobs, pro-worker, pro-family and yes, tax reform that is pro-American."

Greg Moore is state director of the fiscally conservative Americans for Prosperity group that's made tax reform a priority.

"This bold tax reform is a huge step forward from our current tax code that is non-competitive and most Americans truly believe is manipulated against them. Across the state at our tax reform forums, we heard the need for a plan just like the proposal we saw today," Moore said.

"This will allow New Hampshire citizens to keep more of their money and will move the economy forward. Now, we need to keep up our grassroots pressure so that Congress doesn't waste this golden opportunity to fix the tax code for the first time in over three decades."

Congressional Democrats aren't treating the issue with the same disdain it held for Trump efforts to repeal and replace the Affordable Care Act.

Dems lay down principles

New Hampshire's two senators signed a letter 43 of 46 Senate Democrats sent to Trump endorsing tax overhaul, but one that doesn't benefit the wealthy more than other taxpayers, is fully paid for and requires a super-majority and thus a bipartisan vote in the Senate to advance.

Sen. Maggie Hassan, D-N.H, said the Trump plans isn't as advertised.

"I have long said that any tax legislation must benefit hard-working families and small businesses -- not big corporations and the top one percent -- and it must be fiscally responsible," Hassan said.

"The proposal that the Republican Party unveiled today appears to fail that test on both counts. I am also concerned that the proponents of this proposal are trying to mislead hard-working Americans about what it would really mean for them."

Trump, a real estate mogul-turned-politician who promised big tax cuts as a candidate last year, said he personally would not stand to gain financially from the proposal.

"I think there's very little benefit for people of wealth," Trump said.

Republicans have produced no major legislative successes since Trump took office in January even though they control the White House and both chambers of Congress.

A comprehensive rewrite of the tax code has eluded lawmakers for decades. The last one was passed in 1986.

Republican Party State Chairman Jeanie Forrester said the next wave of reform is long past due.

"The fact that our tax code hasn't had a meaningful update in the last three decades is astonishing," Forrester said. "In the last 30 years our economy has changed drastically, yet we continue to work with a system that's playing catch up. This puts an unnecessary drag on our ability to cultivate the type of vibrant economy we need to be competitive and succeed."

Higher family deductions

The White House said that under the proposal typical middle-class families would have less of their income subject to federal income tax. Trump noted that the first $12,000 earned by an individual and the first $24,000 by a married couple would be tax-free.

The plan would lower the top individual rate to 35 percent from 39.6 percent.

It foresees a 20 percent corporate income tax rate, down from the current 35 percent but not as low as Trump's initial demand of 15 percent.

Companies in the United States pay high taxes by global standards but many of them pay much less than the headline rate due to loopholes and tax breaks.

Rep. Carol Shea-Porter, D-N.H., said Republican congressional leaders have in the past tried and failed to get their own membership behind a plan.

"Tax reform plans are only easy in concept: close loopholes to pay for lower rates and consolidate brackets in order to simplify compliance for taxpayers and stimulate job growth," Shea-Porter said.

"It all makes for an easy sound bite and attractive political messaging, but (former) Republican Speaker John Boehner could not get this through because comprehensive tax reform is hard."

Three-term Rep. Annie Kuster, D-N.H., said she is optimistic this could be a topic that produces broad public support.

"I'm hopeful that Congress can work across the aisle to enact fiscally responsible, comprehensive tax reform, not just tax cuts for the wealthiest individuals and largest corporations," Kuster said.

The White House and congressional Republicans did not give an estimate of the plan's cost or how much it might add to federal deficits. The Committee for a Responsible Federal Budget policy group on Wednesday estimated that the plan contains about $5.8 trillion over a decade of total tax cuts and would have a net cost of $2.2 trillion through 2027.

The tax framework would establish a 25 percent rate for business income from businesses called "pass-throughs." These usually small, private enterprises represent an estimated 95 percent of all U.S. businesses.

Reuters contributed to this report with reporting from Washington and Indianapolis.

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