Trump’s proposed tax cuts for corporations and the wealthy could leave millions of Americans with more debt than they’ve ever faced, according to a new report.
In a letter to President Donald Trump released Thursday, House Republicans, including Ways and Means Committee Chairman Kevin Brady and the chairman of the Senate Finance Committee, Mike Lee, warned that Trump’s proposal could damage the economy, which is already struggling with the loss of thousands of jobs and a sharp drop in business investment.
The tax plan would make the federal government even more reliant on tax revenues from wealthy individuals and corporations, the authors said, adding that “in order to maintain economic growth, the U.A.E. needs to be a strong economy for all Americans.”
Trump is likely to have an easier time implementing his plan than his predecessor, former President Barack Obama, who cut taxes for corporations while raising them for everyone else.
Trump, however, is expected to keep his plan as the centerpiece of his legislative agenda, according the letter.
“Your administration has already made clear it will not support the elimination of the estate tax, and this proposal will not only exacerbate the tax burden for the vast majority of Americans, but it will also increase the debt burden for our government,” the letter said.
“The proposed changes to the tax code would significantly exacerbate the debt burdens facing the United States, making the country even more vulnerable to economic decline and a global recession.”
The letter continued:”If enacted, this tax plan could lead to more than $400 billion in new deficits over the next decade, leaving the U,A.D. with a debt of more than 4.5 trillion dollars.”
A spokesman for Brady told the Associated Press that Trump will not be speaking to lawmakers about the letter and the tax plan at this time.
Brady, who authored the tax cuts in the Senate, is the No. 3 Republican on the Ways and Mayes Committee.
The House Ways and means committee, chaired by Rep. Dave Camp, R-Mich., and the Senate finance committee, which includes Lee and the ranking Democrat, Sen. Ron Wyden, D-Ore., have not responded to the letter yet.
Trump’s proposal is expected by some to cost the economy as much as $1.4 trillion in lost economic output, according an analysis by Moody’s Analytics.
The Trump plan also includes tax increases for individuals and businesses.