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Red-state Dems need more from Trump before tax embrace

Red-state Dems need more from Trump before tax embrace
© Greg Nash

President Trump has his work cut out for him in winning over red-state and centrist Democrats for his tax plan.

Many of the Democratic senators who hail from states that Trump won in last year's election say they fear the bill will end up being a giveaway to the rich that explodes the debt.

While none of them are willing to blast the plan as “wealth fare” — the descriptor used by Sen. Charles SchumerCharles (Chuck) Ellis SchumerManchin wrestles with progressive backlash in West Virginia The Hill's Morning Report — Presented by the Coalition for Affordable Prescription Drugs — Health care a top policy message in fall campaigns McConnell says deficits 'not a Republican problem' MORE (D-N.Y.) — they are skeptical of and want to see more details. The nine-page framework Republicans released Wednesday leaves many questions unanswered.

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“Well, it was a framework, so there are a lot of I's to be dotted and T's to be crossed,” Jon TesterJonathan (Jon) TesterDemocrats slide in battle for Senate Overnight Energy: Outdoor retailer Patagonia makes first Senate endorsements | EPA withdraws Obama uranium milling rule | NASA chief sees 'no reason' to dismiss UN climate report Trump on 'I love you' from rally crowd: 'I finally heard it from a woman' MORE (D-Mont.), who is up for reelection in 2018 in a red-leaning state, told The Hill.

“The first numbers that have come out are $1.5 trillion. That’s crazy,” he added, appearing to refer to Senate Budget Committee Republicans’ plan to release a budget resolution that calls for up to $1.5 trillion in tax cuts.

Congressional Republicans intend to pass tax legislation through a process called “reconciliation” so that votes from Democrats are not needed for passage. But Trump has talked of his desire to win bipartisan support for the bill.

The president has been giving speeches in red states with vulnerable Democratic senators, where he has at times suggested that audience members vote against lawmakers if they oppose his tax plan. He has also invited Democratic lawmakers to the White House to talk taxes.

The president on Thursday dared criticize Democrats to oppose his plan.

Democrats don't want massive tax cuts - how does that win elections?” he tweeted.

Ten Democratic senators are up for reelection next year in states that Trump won. All but three of them — Sens. Heidi HeitkampMary (Heidi) Kathryn HeitkampDemocrats slide in battle for Senate Overnight Health Care — Presented by Purdue Pharma —Senate debates highlight fight over pre-existing conditions | Support grows for Utah Medicaid expansion measure | Arkansas health official defends work requirements Election Countdown: Small-donor donations explode | Russian woman charged with midterm interference | Takeaways from North Dakota Senate debate | O'Rourke gives 'definitive no' to 2020 run | Dems hope Latino voters turn Arizona blue MORE (N.D.), Joe DonnellyJoseph (Joe) Simon DonnellyDemocrats slide in battle for Senate Conservatives bankrolled and dominated Kavanaugh confirmation media campaign Donnelly parodies 'Veep' in new campaign ad MORE (Ind.) and Joe ManchinJoseph (Joe) ManchinElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout The Hill's Morning Report — Presented by PhRMA — Early ballots pouring in with 15 days to the midterms Manchin wrestles with progressive backlash in West Virginia MORE (W.Va.) — signed a letter in August saying they would oppose any tax bill that cuts taxes for the wealthiest, increases the debt and doesn’t move through regular order.   

The three senators who didn’t sign the letter expressed interest in working with the White House on tax reform and were among the most hesitant to criticize the framework.

“I believe the president when he says it’s not going to be a tax cut for the rich. … I don’t think that was his intention,” Manchin told The Hill.

Donnelly, who attended the president’s tax-reform speech Wednesday in his home state, said in a statement following the speech that he plans to continue to discuss tax reform with the White House and his Senate colleagues.

“As it stands, the framework released today is missing many details that will be critical to determining whether working- and middle-class families truly stand to benefit,” he said.

“There is an outline. There are no details. Until I see details it would be irresponsible to comment,” said Heitkamp (D-N.D.), who attended Trump’s tax speech in her home state earlier this month, said Thursday.

But other Trump-state Democrats expressed specific objections to aspects of the GOP’s framework.

Sen. Claire McCaskillClaire Conner McCaskillDemocrats slide in battle for Senate Overnight Health Care — Presented by Purdue Pharma —Senate debates highlight fight over pre-existing conditions | Support grows for Utah Medicaid expansion measure | Arkansas health official defends work requirements McCaskill campaign says ‘intern’ who filmed campaign had access to voter data MORE (D-Mo.), whose home state Trump also visited recently to promote his tax efforts, said that she’s worried about the framework’s proposal to lower the top rate for pass-through businesses to 25 percent.

Pass-through businesses, which include sole proprietorships and limited liability corporations (LLC), have their income taxed through the individual code on their owners’ returns, and the bulk of pass-through income goes to high earners.

“I am really worried about the huge tax breaks it gives to pass-throughs, wealthy people that use LLCs,” McCaskill said.

Other Senate Democrats up for reelection next year say the framework could end up benefiting the wealthy and causing issues for the middle class.

Sen. Sherrod BrownSherrod Campbell BrownOn The Money: Deficit hits six-year high of 9 billion | Yellen says Trump attacks threaten Fed | Affordable housing set for spotlight in 2020 race Lawmakers, Wall Street shrug off Trump's escalating Fed attacks The Hill's Morning Report — Presented by PhRMA — Dem victories in `18 will not calm party turbulence MORE (D-Ohio) was positive about several aspects of the plan in a statement on Wednesday, including the recognition of the need to prevent companies from shifting profits overseas. But on Thursday, he told reporters Republicans aren’t focusing on the middle class and taking the right approach.

“These guys continue to try to spin the myth”  that tax cuts for the top 1 percent will trickle down, he said.

Sen. Debbie StabenowDeborah (Debbie) Ann StabenowElection Countdown: Dems outraise GOP in final stretch | 2018 midterms already most expensive in history | What to watch in second Cruz-O'Rourke debate | Trump raises 0M for reelection | Why Dems fear Avenatti's approach Republican Senate candidate apologizes after swastika spotted in campaign ad Poll: Dem Stabenow has 9-point lead over Republican James in Michigan Senate race MORE (D-Mich.), another senator up for reelection in a state won by Trump, said in a statement Wednesday that she’s worried the framework “would give most of the benefits to those at the top and would take away important tax incentives for Michigan manufacturers.”

The framework calls for the elimination of the domestic production deduction and notes that other tax preferences for businesses will be curbed or repealed.

Besides Tester, Manchin and Sen. Bill NelsonClarence (Bill) William NelsonElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout Poll: Nelson leads Scott by 6 points in Florida Senate race Poll: Nelson tied with Scott in Florida Senate race MORE (D-Fla.) also warned of the potential for the GOP’s tax framework to increase the debt.

“If you want $5 trillion to the national debt, that’s a good one,” he said. “Do I like increasing the lowest rate for the lowest income earners?”

There could be challenges for getting votes from Democrats for a tax bill on the House side as well.

Speaker Paul RyanPaul Davis RyanElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout Will the Federal Reserve make a mistake by shifting to inflation? Sanders: Democrats ‘absolutely’ have chance to win back rural America  MORE (R-Wis.) predicted on CNBC Thursday that legislation would receive a few Democratic votes in the chamber, saying that "there are still some moderates left."

But it could be hard for centrist House Democrats to support a bill if the costs of the tax cuts are not fully offset.

The leaders of the House Blue Dog Coalition of centrist Democrats — Reps. Jim Costa (D-Calif.), Henry Cuellar (D-Texas), and Daniel Lipinski (D-Ill.) — said in a statement Wednesday that the tax plan “contains goals that are laudable on paper, but the devil is in the details when it comes to attaining those goals.”

But they also said that it’s important for tax reform to be fiscally responsible.

“If Congress does not find a way to pay for tax reform, it will increase the risk of another economic crisis — and our children and grandchildren can’t afford to bear the brunt of that burden,” they said.

Rep. Jim Himes (D-Conn.), chair of the centrist New Democrat Coalition, said his group is glad that the tax-reform discussions have started but that the proposal violates two principles important to the group's members: revenue neutrality and a focus on those in the middle class and below.

“Tax reform needs to be about simplification and tax relief for the people who need it most,” he told The Hill.

Democrats have also complained that Republicans did not include them in the process of creating the framework.

Himes said it's likely that at some point in the tax-reform process Democratic support will be needed, so it would be beneficial for Democrats to be included early on in the process.

‘We want to be included at the beginning of the conversation,” he said.

Asked if he had been included thus far, Nelson said: “No, of course not.”

He added: “Here we go again. It’s the health care deal all over again.”