President Donald Trump will likely face questions about his tax policies when he addresses Congress in mid-April, a month after the Senate approved a $1.5 trillion tax package that includes $1 trillion for infrastructure spending.
The tax package is a centerpiece of the president’s economic agenda, and it will likely be a subject of discussion when Trump delivers his first address to the nation in about two weeks.
But the president will likely not raise taxes on the middle class and small businesses, a position that has been the cornerstone of his campaign and will likely remain a central theme for much of the address.
The House of Representatives voted overwhelmingly in March to pass the Tax Cuts and Jobs Act, a massive $1,500 per $1 of taxable income tax cut for most Americans.
The bill passed the Senate in a voice vote in April and President Trump has promised to sign it into law in a matter of days.
The Tax CUT Act includes a $2,000 tax credit for small businesses that hire a full-time employee and a $300 credit for employers that hire part-time workers.
The tax credit will be refundable to small businesses.
The White House has touted the legislation as a “jobs bill” that will help boost the economy and create millions of jobs.
But critics say the tax credit and the larger infrastructure package will do little to address a number of pressing economic challenges that are hampering economic growth and putting Americans at risk.
The Congressional Budget Office (CBO) estimated that the $1 billion tax cut will add $3.3 trillion to the federal deficit, or $1 for every $1 that is not in revenue.
The CBO said that the economic effects of the tax cuts are expected to be minimal and that they will be offset by an additional $2.5 billion in economic growth, largely from tax relief.
“The Tax Act contains tax relief for only a small percentage of taxpayers, which means that most of the gains will go to the very wealthy,” said Rep. Joe Crowley (D-N.Y.), a member of the House Ways and Means Committee, a subcommittee on tax policy.
“The Tax Reform Act is much bigger.
The Tax CUSTOM Act is big.
The Senate Tax CURVE Act is a lot bigger.
And I believe the Tax Reform Bill is bigger.
This is just another example of how small tax cuts like this do not deliver the economic benefit that they claim to.”
The White Houses own economic plan does not include any tax relief or additional infrastructure spending, according to an analysis by the Tax Policy Center, a left-leaning think tank.
The White House did not respond to multiple requests for comment on the CBO analysis.
In addition, the Tax Code is littered with provisions that will benefit corporations and the wealthy at the expense of working families.
A provision in the Tax Act that was intended to help small businesses expand and hire more workers was expanded and weakened to help corporations.
The most popular tax relief under the tax bill is the $250,000 child tax credit.
The provision is a refundable tax credit that can be used to offset a portion of a child’s federal income tax bill.
The credit can be claimed by a child who works at a family-owned business and is under 21 years old and pays federal income taxes on income earned before April 16.
But it is also subject to a 25 percent tax rate.
This means that individuals earning less than $250 in gross income, who would have otherwise qualified for the credit, will be hit with a 25% tax rate on any amount over $250.
The $250 child credit will now be refunded at a lower rate of 15 percent.
And in the 2018 and 2019 tax years, the credit will only be refunding up to $250 per child, which is not enough to compensate for the additional costs associated with the child tax credits.
The Senate Tax-Cuts and Budgets Committee also approved a package of tax relief that includes a large tax cut on businesses, the $600 billion infrastructure package, and $400 billion in tax relief to small business owners.
In the House, the package passed overwhelmingly in April, but some Republicans are concerned that the Tax Bill does not do enough to create jobs.
The package includes $200 billion in infrastructure spending to be paid for with a tax cut, including $200.4 billion in construction projects.
But the House bill includes only $200 million in tax breaks, such as $150 billion in job creation and $200 Billion in tax cuts for the wealthy, according a report by the Economic Policy Institute.
This was an issue that drew the ire of Rep. Mark Meadows (R-N., who is also a member in the House of Representative), a member from North Carolina.
“I believe the $400 Billion infrastructure tax relief package is the wrong way to go in terms of job creation, and I believe it is not the right way to do it,” Meadows said.