Overnight Finance: Trump pitches massive tax cuts | Freedom Caucus endorses plan | Dems slam framework | House GOP to move $10B border wall bill | Officials under fire for private jet use

Big tax day: President Trump and congressional Republicans rolled out a sweeping tax overhaul proposal on Wednesday that won immediate praise from conservatives, uniting a party that had been divided over how to repeal ObamaCare.

Business groups and the far-right House Freedom Caucus both backed the GOP blueprint to slash business taxes and trim the number of individual tax rates as Republicans looked to quickly move on from another failure to repeal the health care law.

Trump and his congressional allies are salivating for a major legislative win after a year filled with losses and disappointments, most of them related to a failed effort to repeal and replace ObamaCare. Their new hope is tax reform, which on the surface at least offers plenty for Republicans to agree upon.

Trump, seeming more at ease discussing tax compared to health care, said the framework “represents a once-in-a-generation opportunity to reduce taxes, rebuild our economy and restore America’s competitive edge.”

The president stressed that the benefits would go to the middle class, not the wealthy, though Democrats disputed that assertion.

“I’m doing the right thing, and it’s not good for me, believe me,” Trump said at an event in Indiana to sell the plan.

“This is the right tax cut and this is the right time. Democrats and Republicans in Congress should come together finally to deliver this giant win for the American people and begin [a] middle-class miracle.”

For more on Trump’s tax pitch, click here: http://bit.ly/2xCpH02

And for more on how Republicans got here, and the political stakes ahead, click here: http://bit.ly/2wX8xIn.

 

Inside the GOP tax framework: The Republicans’ long-awaited tax framework would cut the top tax rate for the wealthy, drastically slash taxes for businesses and eliminate most itemized deductions.

The new document provides information on tax rates and certain tax preferences but is vague in some areas, leaving most of the details up to the congressional tax-writing committees as they craft legislation. 

The plan would collapse the number of individual tax brackets from seven to three, with rates of 12 percent, 25 percent and 35 percent. However, it also would give the tax-writing committees flexibility to add a fourth rate above 35 percent for the wealthiest taxpayers.

The top individual rate is currently 39.6 percent. The bottom rate is currently 10 percent, but Republicans expect most people in that bracket to be better off under the framework, even though the bottom rate is increasing, thanks to an increased standard deduction.
The Hill’s Naomi Jagoda and Mike Lillis have more details here: http://bit.ly/2wXeBkc.

 

Conservative groups praise GOP tax plan: Prominent conservative groups offered their support for the tax framework released Wednesday by the Trump administration and congressional GOP leaders and urged lawmakers to pass a budget resolution that would help to advance legislation based on the plan.

“The Republican tax reform plan will turbo-charge the economy, create millions of new jobs and make America the best place in the world to invest, build and create,” Americans for Tax Reform President Grover Norquist said in a statement.

“The outline is both aggressive and very pro-growth with its rate reductions,” said Club for Growth President David McIntosh.

“This framework is a giant step for a stronger economy, and more jobs and higher wages for the American people,” added Freedom Partners Vice President of Policy Nathan Nascimento.

While conservative groups generally did not put their full weight behind the Republican bill to repeal and replace ObamaCare, they have been enthusiastic about the GOP efforts on taxes. Naomi explains: http://bit.ly/2wXzqvY.

 

Freedom Caucus backs GOP tax plan: The conservative House Freedom Caucus is also endorsing the Republican framework for tax reform, giving a jolt of momentum to the plan.

The caucus announced in a tweet they would support the proposal. The Freedom Caucus had been the final obstacle to the House passing a new budget resolution. Members of the group said they needed more details about the tax reform plan before supporting it.

The budget is crucial for Republicans because it will unlock a special process allowing them to pass a tax bill through the Senate with a simple majority. Niv Elis explains: http://bit.ly/2xFX1oq.

 

Study claims GOP tax plan could cost $2.2 trillion: The GOP’s outline for tax reform could cost the country $2.2 trillion in lost revenue over a decade, according to a preliminary study by the Committee for a Responsible Federal Budget, a fiscally conservative advocacy group.

“These numbers come with a high degree of uncertainty and exclude a number of potential offsets where no details exist. But it is clear that much more work needs to be done to ensure tax reform is fiscally responsible,” the group said in its study.

Senate Republicans are allowing themselves up to $1.5 trillion in deficit-financed tax cuts to pass tax reform. If the group’s estimates are correct, they will need to find billions more in revenues to pass the bill according to standards they set for themselves.

The study found that tax cuts in the plan amounted to roughly $5.8 trillion over a decade. New revenues in the form of “base broadening” would bring the overall cost down to $2.2 trillion.

Other aspects of the plan can add more to the cost, Niv Elis reports: http://bit.ly/2xGbf8M.

 

Happy Wednesday and welcome back to Overnight Finance. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

Top GOP senator: Passing tax reform ‘almost impossible’ without Dems’ help: Senate Finance Committee Chairman Orrin Hatch (R-Utah) said on Wednesday the chances of Republicans passing tax reform is “almost impossible” without help from Democrats. 

“It’s tough to do. We’re so equally divided that it’s going to be almost impossible to do without some Democratic help and I’m hopeful that we can do that,” Hatch told Maria Bartiromo on Fox Business Network’s “Mornings with Maria.”

“I think we’ve got to put aside the differences and start working together,” he added: http://bit.ly/2wXeJ36.

 

Dems quickly slammed the tax plan, with Schumer Trump dubbing it ‘wealth-fare’ Senate Minority Leader Chuck Schumer (D-N.Y.) ripped President Trump’s long-awaited tax framework on Wednesday, arguing it would provide a financial “windfall” for wealthy Americans. 

“It seems that President Trump and Republicans have designed their plan to be cheered in the country clubs and the corporate boardrooms,” Schumer said from the Senate floor. 

He added the GOP tax plan should be called “wealth-fare.” 

“[Republicans are] going to be in for a rude awakening as the American people are going to rise up against this,” Schumer said. “It’s little more than an across-the-board tax cut for America’s millionaires and billionaires.” http://bit.ly/2xxv7Mn

 

Dem senator: GOP tax plan is ‘far-right Republican scheme’ for wealthy: The Senate Finance Committee’s top Democrat on Wednesday blasted the Republican tax plan framework as “a scheme” to enrich the wealthy.

Sen. Ron Wyden (Ore.), ranking Democrat on the Senate panel covering taxes, said the GOP tax framework “cuts taxes disproportionately for the well-to-do” while masquerading as a boon for the middle class.

“No amount of spin, no amount of rhetoric can hide the fact that this is a far-right Republican scheme to endow future generations of the mega-wealthy and leave what amounts to crumbs for the middle-class behind,” Wyden said on a press call: http://bit.ly/2xGHwwG.

 

House GOP poised to move $10 billion for border wall: House Republicans next week will begin moving legislation to provide billions of dollars for wall construction at the southern border — a central campaign promise of President Trump that has so far eluded the GOP-led Congress.

The House Homeland Security Committee will mark up the legislation — the Border Security for America Act — on Oct. 4, the panel announced Wednesday.

Sponsored by Rep. Michael McCaul (R-Texas), chairman of the Homeland Security Committee, the legislation would provide $10 billion aimed at securing the U.S.-Mexico border, including funding for new wall and fencing construction, border defense technology and aerial surveillance like drones.

The bill also lends a $5 billion boost to U.S. ports of entry; funds an additional 10,000 border-patrol agents and officers; and expands the use of National Guard troops in border protection efforts, including new wall construction. http://bit.ly/2xGIN6G.

 

Price’s job seen at risk after Trump slams private jet use: President Trump on Wednesday raised the pressure on his own Health and Human Services secretary, refusing to rule out his firing.

The focus on Tom Price is intensifying following a series of Politico reports on Price’s repeated use of private jets, at taxpayer expense, for official travel. Some of the flights overlapped with personal time, including a lunch with his son.

“I am not happy about it. I’m going to look at it. I am not happy about it, and I let him know it,” Trump said Wednesday.

Asked if he would fire Price, Trump responded: “We’ll see.”

The public rebuke of Price ignited speculation about whether he might resign. The Department of Health and Human Services was silent about Trump’s comments.

Asked about Trump’s comments, Caitlin Oakley, an HHS spokesperson, pointed to Price’s comments on Saturday about the flights.

“As it relates to this issue, as the Secretary said over the weekend, he’s heard the criticism and the concerns. He takes that very seriously and has taken it to heart,” she said.

At the same time, she said, Price and the department continue to work “day and night” on challenges like the opioid epidemic and hurricanes. http://bit.ly/2wkSUes

Reports Wednesday said that EPA chief Scott Pruitt also took private and military jets for work. http://bit.ly/2fSVVfT

The House Oversight panel on Wednesday also announced plans to investigate officials use of private jets, including that of Treasury Secretary Steven Mnuchin. http://bit.ly/2xGZUFx

 

Senate panel invites Facebook, Google to testify in Russia probe: The Senate Intelligence Committee has issued a request for Facebook to testify in an open hearing to examine how foreign actors may have used social media companies to influence the 2016 election, The Hill has learned.

Committee leaders have also invited Twitter and Google to testify at the hearing set for Nov. 1, according to a source familiar with the matter.

Facebook confirmed Wednesday that it has received the invitation to appear at the hearing, but it is not clear yet whether the company will accept.

Senate Intelligence Committee Chairman Richard Burr (R-N.C.) declined to comment on plans for the hearing when asked by reporters, saying only the committee planned to hold a news conference next week to “bring everybody up to date on the investigation.” http://bit.ly/2xGoiXX.

 

NAFTA negotiators tout progress: Top trade negotiators from the U.S., Canada and Mexico said Wednesday they have one chapter of an updated North American Free Trade Agreement (NAFTA) in the books.

U.S. Trade Representative Robert Lighthizer, Canadian Foreign Affairs Minister Chrystia Freeland and Mexican Secretary of the Economy Ildefonso Guajardo said they have completed the chapter on small- and medium- sized enterprises in remarks at the end of the third round of NAFTA talks in Ottawa.

Lighthizer called it “very, very important” that the chapter is done.

“These businesses are the engines that drive each of our economies,” Lighthizer said in his closing remarks.

“They represent great ingenuity and hard work, turning businesses into dreams and into reality,” he said: http://bit.ly/2fRg5a3.

 

Kelly moves Navarro’s trade office under Cohn: White House chief of staff John Kelly is bringing more change to the West Wing, rolling Peter Navarro’s trade office into the National Economic Council.

Navarro, who heads up the Office of Trade and Manufacturing Policy, will report to National Economic Council Director Gary Cohn in a move aimed at reining in the policy shop, Politico first reported on Wednesday.

What the change might do to Navarro’s ability to influence President Trump remains to be seen. 

“I’m a chain of command guy and will follow Chief Kelly’s orders,” Navarro told Politico in a statement.

“The chief has assured me I will continue to have the same seat and voice at the president’s decision-making table.”

Kelly reportedly made the decision on Tuesday: http://bit.ly/2xGBo7A.

 

Trump to address regs rollback amid tax reform push: President Trump plans to give a speech at the White House next week on his efforts to roll back federal regulations.

“The President will be making remarks in the morning highlighting his administration’s efforts to eliminate excessive, job-killing regulations to an audience of about 250-300 regulatory experts from think tanks, industry groups, universities, companies, and state governments,” a White House official said.

During the campaign, Trump claimed that as many as 70 percent of regulations could go and issued an executive order when he took office directing federal agencies to eliminate two rules for every new one proposed.

Following his speech scheduled for Monday, a White House official said 10 agencies will hold break-out sessions with some of the groups in attendance and talk about “how they can make regulation smarter, more efficient and less burdensome on our economy.” The Hill’s Lydia Wheeler has more: http://bit.ly/2xHdokN.

  

GOP bill would end sports leagues’ tax-exempt status: A Republican member of the House Oversight Committee has introduced legislation that would revoke major professional sports leagues’ ability to be exempt from taxes.

Rep. Blake Farenthold (R-Texas) filed the bill — carrying on an effort from former Oversight Committee Chairman Jason Chaffetz (R-Utah) — amid President Trump’s criticism of NFL players kneeling during the national anthem to protest police brutality against minorities.

“Professional sports leagues should not be exempt from paying taxes,” Farenthold said in a statement. “These are highly profitable businesses that make tens of millions of dollars each year and have been exploiting loopholes to game the system. It’s time we blow the whistle on this foul, and get this bill over the goal line.”

The measure, titled the Properly Reducing Overexemptions for Sports Act, would specifically prevent professional sports leagues from registering as nonprofits if they have annual revenues of more than $10 million. http://bit.ly/2wXhQIo.

 

Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com, njagoda@digital-staging.thehill.com and nelis@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda and @NivElis