Senate Republicans continue to break with President Trump on tax reform, announcing their plan to delay the corporate tax cut from 35 percent town to 20 percent until 2019; a major split from the President’s call for immediate action to help create millions of jobs, reports the Washington Post.
According to inside sources familiar with the Senate negotiations, many GOP legislators objected to the year-long delay but were overruled by a majority of lawmakers. The announcement raises serious concerns that American businesses will unnecessarily wait a full year to make investments and hire employees.
The delay would lower the cost of Trump’s tax overhaul by approximately $100 billion as GOP Senators struggle to advance key aspects of the President’s legislative agenda.
“The one-year delay would lower the cost of the tax cut bill by more than $100 billion, and negotiators are trying to preserve as much revenue as they can for other changes. But it could also delay decisions by companies to move back to the United States from overseas or have companies hold off on other decisions as they wait for the corporate rate to fall,” writes the Post.
Trump has routinely criticized Senate Majority Leader Mitch McConnell over his seeming inability to pass significant new legislation, blasting the Kentucky lawmaker for “breaking a seven year promise” to the American people on repealing Obamacare.