Grover G. Norquist
Politics, North America
Competing visions of the world will clash and America may change its economic future and define its national policy for years to come. Or not.
The battle underway in Washington to enact pro-growth tax reform is itself a perfect storm. Four questions will be answered. Competing visions of the world will clash and America may change its economic future and define its national policy for years to come. Or not. The states are high. And this political battle has a deadline.
It should be easy to cut taxes with a Republican House, a Republican Senate and Donald Trump elected both as a Republican and as the candidate of pro-growth tax cuts. George W. Bush had a Senate majority (fifty-one) slimmer than Mitch McConnell’s fifty-two, and a House majority of 229 compared to Paul Ryan’s 240. The 2001 tax cut was signed into law on June 7, 2001. Reagan had fifty-three Republican Senators and a fiercely partisan 244-Democrat majority in the House. Reagan’s across the board 25 percent tax rate reduction was signed at the Western White House on August 13, 1981.
It is now late September and the optimists predict a tax bill will be signed by Trump in late November, early December.
Why the delay in unveiling and passing a tax cut? Trump’s tax cut plan was as clearly stated and as often repeated in 2016 as George Bush was in 2000 and Reagan was in 1980. It was a central part of the campaign. Trump called for reducing the corporate income tax from 35 percent—the fourth highest business tax rate in the world (United Arab Emirates, Comoros and Puerto Rico have higher rates.) Trump’s recommended business income tax rate of 15 percent was below the 25 percent House Republicans had earlier supported and Paul Ryan rewrote his plan to move to a 20 percent rate to be closer to Trump’s number.