Republican tax plan in confusion
The nonpartisan Joint Committee on Taxation ruled that the tax plan Republicans had hoped to move swiftly through the Senate would add $1 trillion to the deficit even after accounting for the positive impact from economic growth. The announcement helped halt progress on the tax effort and presented a stark challenge to a core tenet of the Republican Party’s economic philosophy. Sen. Patrick J. Toomey (R-Pa.), who has helped shape the tax effort, declared on the Senate floor the same day, “If this legislation is signed into law, we are going to have a smaller deficit in future years than we are on a path to have now.” His was only the latest comment from a prominent Republican spelling out a faith in tax cuts not adding to the deficit. “The plan will pay for itself with growth,” President Trump’s treasury secretary, Steven Mnuchin, said this spring about Republicans’ emerging tax plan. “Faster economic growth helps raise the economy, which raises revenue. And...