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Official estimate could upend Trump tax plan

Official estimate could upend Trump tax plan
Posted at 8:28 AM, Apr 26, 2017
and last updated 2017-04-26 08:28:55-04

A new congressional estimate could upend President Donald Trump's tax plan even before he releases it.

Trump is scheduled to unveil the broad outlines of a tax overhaul Wednesday. As part of the plan, he would propose a massive cut in the corporate income tax, reducing the top rate of 35 percent to 15 percent.

The official budget scorekeeper for Congress said Tuesday that even a more modest rate cut, to 20 percent, would add to long-term budget deficits - even if the tax cut is temporary.

That's a problem for Republicans because the Senate cannot pass legislation that would add to long-term budget deficits without a 60-vote majority. That means Democrats would have to support it, and Republicans and Democrats have major differences when it comes to tax reform.