Debt watchdogs slam Republican tax proposal

Debt watchdogs slam Republican tax proposal
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Fiscal hawks are slamming the tax plan that House Republicans released Thursday, warning it would only deepen the nation's debt woes.

"Passing a bill to our kids is not the right way to pass a bill. This legislation is an example of fiscal irresponsibility,” said Peterson Foundation President Michael Peterson. 

The bill, Peterson argued, includes arbitrary phase-ins and expirations designed to mask the true costs of the legislation.

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The 429-page bill, released Thursday, would slash income tax and corporate tax rates and pay for a portion of the cuts by eliminating deductions. 

The Republican budget allows for the tax cuts to add $1.5 trillion to the deficit over 10 years. That money would be paid for by borrowing, adding to annual deficits and the nation’s overall debt burden. 

The Committee for a Responsible Federal Budget’s President Maya MacGuineas said an additional $1.5 trillion in debt amounts to almost $12,000 per household.

“Given the huge unpaid-for gap remaining, this plan does not constitute true comprehensive, revenue-neutral, and pro-growth reform,” she said.

Republicans argue that the tax plan will stimulate economic growth, which will result in additional revenues that cover at least part of the new deficits. 

Under instructions included in the GOP budget, Republicans cannot add more than $1.5 trillion to the debt if they want to use a fast-track procedure called reconciliation to pass the bill. 

Rep. Kevin BradyKevin Patrick BradyEconomic growth rate slows to 2 percent as delta derails recovery Democratic retirements could make a tough midterm year even worse Yellen confident of minimum global corporate tax passage in Congress MORE (R-Texas), the chairman of the tax-writing House Ways and Means Committee, on Thursday said the bill would add roughly $1.5 trillion to the debt.

The final determination on the fiscal impact of the bill will be made by the Congressional Budget Office and the Joint Committee on Taxation, which will score the legislation.