Crapo: Senate Republican Plan Powers Economic Growth, Delivers Tax Relief
Washington, D.C.-- U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) joined Larry Kudlow on Fox Business to talk about Senate Republicans’ plans to prevent the largest tax hike in U.S. history, power the economy through pro-growth tax policy, provide additional tax relief for working families and address wasteful spending.
Click here to watch the interview
On the importance of making pro-growth tax policy permanent:
[T]he Council of Economic Advisors has indicated that—together with some regulatory reform that President Trump is doing and some of the DOGE activities—we ought to generate somewhere between 4 and 6 percent growth in GDP, and what that translates into with regard to our tax bill is trillions of dollars for growth in capital formations, jobs, wages, benefits and new revenue to the treasury to pay down our deficits.
This tax package will stop a $4.3 trillion tax increase, and it will make these taxes cuts permanent so that we don't have to face another tax cliff like this in the future.
Bonus depreciation—permanent; R&D—permanent; and the EBITDA accounting rules—permanent. Those three business taxes that are now permanent are a big part of what is going to generate that capital formation in this country and help us grow back to the strength we did when we originally passed the [Tax Cuts and Jobs Act].
. . .
[The] 20 percent small business deduction is now permanent. Our passthrough entities can get treated fairly like corporations do, and be a part of that incredible capital formation and growth that our country is going to see.
On additional tax relief for American workers, seniors and businesses:
[I]n addition to stopping a $4.3 trillion tax increase, we've got full factory expensing, as President Trump has asked for as well, and a number of other tax cuts.
We've got no tax on tips, an increase in the deduction for seniors, and we also have no tax on overtime.
On Republican efforts to reduce spending:
We reduce actual spending in our entitlement programs by somewhere between one-and-a-half and $2 trillion, and that spending, as well as the growth element of these tax policies is going to generate a deficit reduction, not a deficit increase.
The $1.5 to $2 trillion in actual spending reduction is the biggest entitlement reform that has ever been done by Congress.
Legislative text within the Finance Committee’s jurisdiction can be found here, a section-by-section here and summary here.
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