PHILADELPHIA (CBS) — It will be up to a House-Senate Conference Committee to sort out a tax cut plan after Republicans in the Senate passed their version over the weekend. No Democratic senators backed it, contending the tax cuts favor corporations and the rich.
Sen. Pat Toomey, as a member of the Senate Finance Committee, was instrumental in crafting the cornerstone piece of legislation for Republicans. He maintains the tax savings, in percentage terms, will be greater for low and middle-income families than for high-income families.
Toomey says it will also fundamentally restructure the tax code. The senate bill lowers the corporate tax rate from 35 percent to 20 percent. He points out the last time there were major changes to the tax code was 1986, during which most of the rest of the modern world had tax rates of 39 percent. But he points out the big industrial economies against which the U.S. competes now have tax rates of just over 22 percent.
“We take that rate down to 20 percent, so we can compete and do business that we are losing out on today,” Toomey said.
The Senate measure takes hold in 2019. The House version kicks in next year, so that will have to be reconciled.
“All differences that can be resolved,” Toomey said. “The big tools to achieve the goals are the same.”
Toomey dismisses complaints from Democrats that the tax reform plan was put togther in secret, and it could be reflected in next year’s mid-term elections.
“I’ve always believed that good policy is good politics,” Toomey said.