GOP chairman: Tax reform could increase deficit

by Niv Elis - 08/16/17 6:56 PM ET

The Republican tax reform plan could blow a hole in the nation’s deficit for several years, House Ways and Means Committee Chairman Kevin Brady (R-Texas) said Wednesday.

“We will be open to losing tax revenues in these early years,” Brady said at an event on tax reform at former President Reagan’s ranch in Santa Barbara, Calif.

Any such deficits, he added, would eventually come down as a result of economic growth and eventually disappear altogether, a controversial prospect among economists and deficit hawks alike.

{mosads}Brady also demurred on several questions pertaining to details of the tax reform. When asked if the popular mortgage interest deduction would be capped and about the reform’s effects on charitable giving, Brady repeated the mantra that economic growth would take care of the problem.

More money in people’s wallets, he argued, promoted both home ownership and charitable giving.

Brady also repeated his call for Democrats to join the effort.

“I think they bring so much to the table. We’re working in the House with our House Democrats in exploring common ground on tax reform,” he said.

Democrats have complained loudly that they have been shut out of the process and say they will not sign on to plans that cut taxes for the nation’s wealthiest.

“We can’t afford tax cuts for millionaires and corporations that will be paid for by cuts to Social Security, Medicare, Medicaid, public education and other priorities for working families,” said Frank Clemente, executive director of the left-leaning Americans for Tax Fairness.

“If the Republicans were serious about creating jobs, they’d invest in infrastructure, healthcare and public education — not cut them,” he added.