Flake calls for ‘wholesale reform’ as Republicans roll out tax cut plan
Nov 2, 2017, 10:10 AM | Updated: Nov 3, 2017, 5:53 am
PHOENIX — U.S. Sen. Jeff Flake (R-Ariz.) called for wholesale tax reforms on Wednesday, hours after Republicans unveiled a slew of tax cuts.
“We have been hearing a lot about cuts, cuts, cuts,” he said on the Senate floor. “If we are going to do cuts, cuts, cuts, we have got to do wholesale reform.”
Flake said the cuts would likely lead to greater economic activity but that would not be enough to curtail the $20 trillion national debt.
“With the national debt exceeding $20 trillion, we have got to take this seriously,” he said. “Rate reductions have to be accompanied by real reform. We cannot simply rely on rosy economic assumptions, rosy growth rates to fill in the gap. We have got to make tough decisions.”
Flake also said the cuts will lose their impact should lawmakers fail to act when the economy changes.
“We have seen this before. We make the cuts now. We rely on rosy economic assumptions, and then in the out-years, if those don’t come about, then we forget what we were supposed to do in terms of reform,” he said.
But the Arizona senator had some kind words for the Republican plan. He said the decreased corporate rate could help create a more conducive environment for businesses and the possibility to simplify tax code was a great opportunity.
“The tax code is full of costly loopholes that allow businesses and millions of individuals to get away with paying no income tax or no corporate tax,” he said. “After over 30 years, I’m pleased to see the Congress finally getting down to the work of doing a tax overhaul.”
The plan slashes the corporate rate from 35 percent to 20 percent, a demand of President Donald Trump.
The plan shrinks the number of brackets from seven to three or four, with respective tax rates of 12 percent, 25 percent, 35 percent and a category still to be determined. The system would be simplified, and most people would be able to file their returns on a postcard-sized form.
The Associated Press contributed to this report.
