Freedom Caucus chair on tax plan: 'Failure is not an option'

Rep. Mark Meadows, R-N.C., and Rep. Peter King, R-N.Y., discuss House Republican's new tax bill on "This Week."
6:14 | 11/05/17

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Transcript for Freedom Caucus chair on tax plan: 'Failure is not an option'
We're back with the GOP's big push on tax cut. President trump and house Republicans launched their bill this week. A 400-page rewrite on the tax code. New cuts and credits for individuals and families. That will increase the the deficit by at least $1.5 trillion over ten years and should cut income taxes for most Americans. Five years out, many middle class families will see taxes go up as credits expire. Most of the benefits go to the wealthiest Americans. But the bills supporters' argue that economic growth will be a big boom for every American. We're joined by house Republicans with different views of the plan. Mark meadows of North Carolina and congressman Peter king of New York. Congressman king, let me begin with you. You have been an outspoken critic of the bill's doing away with state and local income taxes. Are you a to vote? As of now, I would be. I'm a romd Reagan, jack Kemp Republican when it comes to tax cuts. This bill, by taking away the state and local tax deduction has a particularly devastating effect on New York and new Jersey. We already get treated unfairly. New York gets back 79 cents on the dollar. A $40 billion deficit on money we send to Washington and does get back. Since 1913, it's been a principle not to have a tax on a tax. One other policy suction is that the Republican party has always stood for federalism. Encouraging state and local developments to do all that they can. Now, we're being penalized for that. It's strong. It would have an extremely damaging effect on my constituents. Who are middle, in some cases upper middle, but mostly middle income. A district that went for Barack Obama. Donald Trump carried it by nine. That's a 14-point turn around. The main option I'm getting are from trump voters. One no vote. Congressman meadows, let me bring it to you. You and fellows have been deficit hawks. This is going to increase the deficit. Independent analysts say it koud be far more than what's expected. Can you vote for the bill? We can. It's a work in progress. Obviously, Peter sing is advocating real hard on behalf of his constituents. I appreciate that. Peter and I were on the house floor just the other day. And, as we were talking about, what it does for his constitue constituen constituents. What it does for mine. I can tell you, on the deficit side of thirngs even though we're looking at a 1.5 trillion increase in the deficit in the short run, preliminary numbers look good in terms of economic growth. Over a longer period of time, some 10 to 15 years, we believe that the economic growth will outweigh any short term deficit increase that we see. And so, Peter and I are going to have to continue to work together to hopefully get this right. We're going to start the markup on Monday. In the house. The senate will be rolling out their bill in the next few days. But, at the end of the day, we -- you know, failure is not an option. You're willing to vote to increase the deficit over ten years? I am. I mean, we have looked that. Of course, I'm a numbers guy, George. As I have looked that particular bill, it appears that we should be able to get hopefully a 3.5 to.6 gdp growth bump. When we do, that actually means higher wages. A stronger economy. And as you look at a longer budge window, what it does is, even though we're looking at increasing the deficit in the short run, over a 15-year period, it appears we could have these tax cuts paid for because of economic growth. Congressman king, president trump added a wrinkle when they said we should repeal the Obamacare mandate. Can you go along with that? I think we should confine this for tax reform. I agree with mark. I hope we can work it out. Right now, as I look ate for my district and my state. You would have my voters subsidizing over states in the country. New York does subsidize the rest of the country already. I want to work this right now. If it's worked out, I support almost everything else in the bill. I agree with mark. I think it is going the bring about growth for the country. I just don't want the rest of the country to be growing and more and more people having to move out of New York or lose their homes. Congressman meadows. One other issue. When the tax credit expire, five years from now, 2023, there will be on average tax increase for families earning $20,000 to $40,000 a year. And for families $200,000 to $500,000. Can you go along with that sthnchts one of the things I have been advocating for is to include a repeal of the individual mandate in the tax bill. The reason for that, it gives us probably close to $40 billion more to not only extend those tax credits you're talking about -- $400 billion more. To address the state and local tax situation Peter is seeing. We're advocating on behalf of that. When you look at those tax credits, it's spiring. Most of what we're seeing is, as we start to reconcile with the senate. They will be permanent tax decreases for not only middle income Americans. But across the spectrum that will be permanent for a ten-year period. So, looking at the detailed numbers, I think that the analysis that perhaps some nay sayers have right now is not going to be meted out in the coming days. I'm hope physicful we vote on this by November 16th in the house and the first part of December in the senate. Thank you for your time. We'll be right back with "The roundtable." Cc1 Test message

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