Larry Kudlow, a conservative economist and an outside economic adviser to President Trump, is blasting the individual side of the Senate GOP tax plan, saying it isn’t a “true tax-reform bill” and warning that it will “hurt a lot of different people.”
“The individual side of this is maybe not the worst thing I’ve ever seen,” Kudlow 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.”
“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 added.
“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.”
On Tuesday, the Senate Budget Committee voted to advance the Senate GOP tax bill to a full vote in the upper chamber.
Senate Republicans can only afford two defections if all Democrats vote against the bill.
The Hill added:
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.