Kentucky politicians at odds over potential impact of latest tax plan
Kentucky's representatives in Congress are reacting to the Senate passing the Republican tax plan.
LOUISVILLE, Ky. (WDRB) -- Kentucky's representatives in Congress are reacting to the Senate passing the Republican tax plan.
Speaking at a press conference in Louisville on Saturday, Senate Majority Leader Mitch McConnell championed the bill.
“The average family of four would get about $2,200 in tax relief, and that’s pretty darn important,” McConnell said.
In an interview Saturday night, Democratic Congressman John Yarmuth of Louisville, said the tax plan will benefit the wealthy.
“The bill as far as I’m concerned is a total scam. They keep saying it’s gonna help the middle class but in a few years virtually everybody making less than 75,000 is gonna pay more in taxes,” Yarmuth said.
McConnell said the legislation will make the country more competitive on the world stage and benefit all Americans. In his press conference, he pointed to the policies of former President Barack Obama as a hindrance to major economic growth.
“It seemed to us that there were two principal causes of it. One was over regulation and the other was a failure to address the tax code which is increasingly uncompetitive in a global economy,” McConnell said.
Yarmuth does not agree, and sees the legislation as a mistake.
“It’s a giveaway to the richest corporations, richest Americans, and it’s totally unnecessary,” Yarmuth said.
McConnell said the part of the bill reducing taxes for corporations will benefit everyone.
“I think almost anything the company decides to do with the extra money will be good for the country. Either it will go into dividends, which will go into trust funds and teachers retirements,” McConnell said.
“It gives huge tax break to people who don’t need them and pays for it by mortgaging the future of our children and grandchildren,” Yarmuth said.
McConnell said growth will make up the lost revenue.
“The budget that we passed allows a deficit of $1.5 trillion," McConnell said. "To fill that gap over the next 10 years, the economy would only have to grow four tenths of one percent."
“Virtually every economic expert in the country, across every philosophical spectrum, has said there is no way tax cuts pay for themselves,” Yarmuth said.
Cuts allowing companies to move money back into the U.S. from overseas at a lower tax rate has the two Kentucky representatives at odds over the potential impact.
Yarmuth said reductions have been tried in the past and did not produce positive results.
“They did not hire people. They did not invest in their companies. You invest when there is business to do and right now that’s not the situation,” Yarmuth said.
“We were the only major country that applied a domestic tax to an overseas profit,” McConnell said. “So we ended up having enormous amounts of money overseas that were not brought home because they in fact were double taxed."
The House and Senate will need to reconcile both versions of the bill to move the legislation forward.
A final version could be sent to President Donald Trump for his signature before Christmas.
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