CHARLESTON, W.Va. — Both U.S. Sens. Joe Manchin, D-W.Va., and Shelley Moore Capito, R-W.Va., want tax reform to happen this year and hope they can unite members from both parties in passing legislation.
The two were asked about plans for tax overhaul during visits to the Charleston area last week. The Senate was not in session, allowing both lawmakers opportunities to attend events and speak to constituents. Senators are back in Washington this week as members of the House of Representatives are out of session.
President Donald Trump, the House Committee on Ways and Means and the Senate Committee on Finance unveiled a tax overhaul plan on Sept. 27, which includes consolidating the individual tax brackets from seven to three, a reduction in the corporate tax rate to 20 percent and a one-time tax to encourage corporations to move profits away from offshore accounts.
Following remarks at a women’s business summit in South Charleston, Capito said she is confident tax reform will happen before the end of the year.
“It’s important for growth,” she said.
Capito referenced a Raleigh County mine tour she took on Oct. 10 with Manchin and Secretary of Labor Alexander Acosta as people who could benefit from changes to the tax code.
“All those guys I saw are teed up for tax relief, and I think that it is a good thing for every West Virginian,” she said.
During a stop at Capital High School, Manchin said there are positive points about the Republican proposal, including the simplification of brackets and lowering corporate rates.
“I want to work with that and want to make sure we’re not adding to the debt or cutting vital services of Medicare and Social Security,” he said.
According to The Hill, Manchin spoke to Senate Majority Leader Mitch McConnell, R-Ky., about a 25 percent corporate tax rate rather than the proposed 20 percent.
Manchin is concerned about the effects of a plan if the blueprint is put into law. According to a staff report from the minority members of the Senate Committee on the Budget, the Republican proposal would add $1.5 trillion to the national deficit over the next decade and cut Medicare by $470 billion in order to pay for the tax reductions.
“That should be a non-starter,” Manchin said. “Our intention is to maintain the services that we, protect our country and have a system that will pay our bills and have a system that will get us out of debt eventually. No one is talking about debt. We’re $20 trillion.”
Manchin added during a Sept. 13 visit to the White House, Trump told him the plan would not be a tax cut for the wealthiest Americans.
“I want to make sure we are able to work toward what his dialogue with me has been,” he continued.
For Capito, the biggest obstacle in passing legislation may be her own party; while the GOP controls the Senate with 52 members, moderate Republicans sunk attempts earlier this year to repeal and replace “Obamacare,” and much like that effort, only 50 senators are needed to pass a tax overhaul bill given a supporting vote by Vice President Mike Pence.
Tennessee Sen. Bob Corker said on Oct. 6 he would oppose a tax plan if it adds to the deficit.
Corker, who announced in September he will not run for re-election in 2018, has also become a target of Trump following criticisms the senator made on the Trump administration.
“I think Secretary (Rex) Tillerson, (Defense) Secretary (Jim) Mattis and Chief of Staff (John) Kelly are those people that help separate our country from chaos,” Corker said.
This was the start of multiple shots between the two, in which Trump tweeted that Corker asked him to support a 2018 re-election campaign, and Corker responded by calling the White House “an adult day care center.” He later told the New York Times that the country “could be heading towards World War III” because of Trump’s comments and Twitter activity.
Capito said while Corker is a friend, she wished the two could put the dispute aside.
“I think strategically I would question going after a real leader in the fiscal responsibility area such as Bob Corker, but Bob’s smart enough that he’ll figure out what he wants to do regardless,” he said.
Capito added she wants to spend her time talking about policy and ways to improve West Virginia.
“I’m not getting bogged down in the Twitter storm,” she commented.
Speaker of the House Paul Ryan, R-Wis., said Congress will pass tax reform this year, even if it means keeping lawmakers in Washington at Christmas.