Trump adviser on GOP tax plan: 'Not a true tax-reform bill'

Trump adviser on GOP tax plan: 'Not a true tax-reform bill'
© Getty Images

An outside economic adviser to President Trump is criticizing the individual side of the GOP tax plan, saying it isn't a "true tax-reform bill."

“The individual side of this is maybe not the worst thing I’ve ever seen,” Larry Kudlow, a conservative economic analyst and former adviser to President Reagan, told Politico "Money" podcast.

“But when you end the state and local deduction, because rates are still relatively high, you are going to hurt a lot of different people. So the internal logic was not good and this is not a true tax-reform bill.”

ADVERTISEMENT

Kudlow assisted in designing the corporate tax cuts in the GOP's plan, according to Politico.

“The sickest part of our tax system is the business side because of international competitive reasons and because of America’s prohibitively high tax rates,” he said.

“Profits have been coming in rather well over the last 10 years. But the money is going offshore and that’s really hurt not only investment, it’s also hurt wages.”

Senate Republicans have momentum ahead of a possible vote this week on tax legislation following a meeting of their caucus with Trump.

Senate Republicans cleared a key hurdle in their effort when the Senate Budget Committee voted to advance the bill on a party-line vote.

Trump has made clear he's willing to deal with senators on their individual demands.

Republicans can afford just two defections if all Democrats vote against the bill, but it appeared Tuesday they were nearing their goal.

House Republicans from high-tax states controlled by Democrats like New Jersey, New York and California are opposed to the elimination of the state and local tax deduction that many of their constituents currently use. The House bill includes a deduction for property taxes up to $10,000 while the Senate GOP version does not.