Fresh off his biggest legislative victory of the Trump era, Senate Majority Leader Mitch McConnell on Saturday disputed projections that the Senate’s tax bill would add to the nation’s debt woes.
Back home in Kentucky just hours after the Senate narrowly pushed through the nearly $1.5 trillion tax bill, McConnell predicted that the boldest rewrite of the nation’s tax system in decades would generate more than enough economic growth to prevent the burgeoning deficits being forecast.
‘I not only don’t think it will increase the deficit, I think it will be beyond revenue neutral,’ he told reporters. ‘In other words, I think it will produce more than enough to fill that gap.’
Senate Majority Leader Mitch McConnell, R-Ky., answers a reporters question during a news conference Saturday, Dec. 2, 2017, in Louisville, Ky
US President Donald J. Trump delivers remarks as he walks to board Marine One on the South Lawn of the White House in Washington DC
Over the next decade, Republicans’ tax plan is projected to add at least $1 trillion to the national debt. That would be on top of an additional $10 trillion in deficits over the same period already being forecast by the Congressional Budget Office.
‘I’m not one of the total supplier siders who just believes that if you cut taxes, no matter what amount, you turn out ahead,’ McConnell said. ‘I still believe in revenue neutrality for tax reform, and I believe this is a revenue neutral tax reform bill.’
McConnell’s hometown congressman, Democrat John Yarmuth, said Senate Republicans had ‘abdicated any claim they had to being the party of fiscal responsibility.’
‘There is nothing remotely responsible about forcing through a … hastily conceived bill to give tax cuts to the already wealthy and multi-national corporations,’ Yarmuth said in a statement.
Meanwhile, President Trump hailed the legislative victory as a monumental achievement under his administration and thanked Republican lawmakers for their efforts.
Demonstrators take part in a protest during a fundraising breakfast at Cipriani’s for the Trump 2020 campaign, at the Manhattan borough in New York, U.S., December 2, 2017
Demonstrators protest against government’s tax reforms next to the New York Stock Exchange at the Manhattan borough in New York, U.S., December 2, 2017
A banner with the pictures of U.S. president Donald Trump and White House Senior adviser Jared Kushner is seen as demonstrators protest against government’s tax reforms
‘Biggest Tax Bill and Tax Cuts in history just passed in the Senate. Now these great Republicans will be going for final passage,’ he told reporters around 8am Saturday.
‘Thank you to House and Senate Republicans for your hard work and commitment!’
McConnell predicted that the GOP-led House and Senate can resolve differences over the tax legislation and get it to President Donald Trump before Christmas. McConnell said he doesn’t foresee any compromises that would threaten the Senate Republican coalition supporting the bill.
Sen. Bob Corker, R-Tenn., was the only lawmaker to cross party lines, voting in opposition along with Democrats.
Demonstrators take part in a protest during a fundraising breakfast at Cipriani’s for the Trump 2020 campaign
McConnell also disputed claims by the bill’s critics that it focuses its tax reductions on businesses and higher-earning individuals, while giving more modest breaks to others.
‘I haven’t run into anybody during this whole tax discussion who’s very successful who thinks they’re benefiting from it,’ the Senate leader said.
The bill would award about $2,200 a year in tax relief to the average family of four, McConnell said. ‘And that’s pretty darn important to them,’ he said.
Voters ultimately can look to the nation’s economic performance to determine whether Republicans or Democrats were right in the bitter tax debate.
‘Look, a year or two from now, you guys can make an assessment which one of us was right,’ he said to reporters. ‘The proof will be in whether or not the economy picks up and things get better.’
McConnell, the state’s longest-serving senator, also indicated during his appearance in Louisville that he plans to run for another Senate term in 2020.
Demonstrators take part in a protest against the U.S. government next to the New York Stock Exchange at the Manhattan borough in New York, U.S., December 2, 2017
A banner with the pictures of U.S. president Donald Trump and White House Senior adviser Jared Kushner is seen as NYC Mayor Bill de Blasio speaks to demonstrators
Demonstrators protest against government’s tax reforms next to the New York Stock Exchange at the Manhattan borough in New York, U.S., December 2, 2017
Asked whether he’s bracing for a potential challenge from within his own party, McConnell said as a party leader he gets ‘a lot of slings and arrows.’
‘I think the best way to judge a campaign is how did it end, not how did it begin,’ he said, pointing out that he overwhelmingly carried the state in 2014 in the primary and general elections.
Later in the day, Trump spoke at a fundraiser at New York’s Cipriani restaurant, while protesters lined the streets outside to revolt against the decision.
They carried signs labeling it a ‘GOP Tax Scam’ and said the cuts would destroy education.
During his speech Saturday he said: ‘We got no Democrat help and I think that’s going to cost them very big in the election.
‘Because, basically, they voted against tax cuts.’
Republicans’ tax plan is projected to add at least $1 trillion to the national debt over the next decade
US President Donald Trump speaks at a fundraising breakfast at a restaurant in New York, New York on December 2, 2017
And he explained why he preferred using the words ‘tax cuts’ instead of ‘tax reform’.
‘For years, I said I wonder why they use the word reform,’ Trump said.
‘Because nobody knows what reform means. Reform could mean your taxes are going up. And I said to my guys. I called everybody and we had a meeting. Senators, Congress, everybody. I said we have to use the word tax cuts.’
‘Look forward to signing a final bill before Christmas!’ he said.
Trump tweeted soon after the bill passed in the Senate, which occurred around 1.50am Saturday morning, reiterating the Republican argument that the bill will help poor and middle class families.
‘We are one step closer to delivering MASSIVE tax cuts for working families across America. Special thanks to @SenateMajLdr Mitch McConnell and Chairman @SenOrrinHatch for shepherding our bill through the Senate,’
The legislation still needs to be sent back to House Republicans to be sign-off on before the President can enact it into law.