Last week, Speaker Paul Ryan and House Republicans introduced their proposal for tax reform. Democrats denounced the plan and Sen. Ron Johnson, R-Wisconsin, has voiced concerns about aspects of it.
But Rep. Sean Duffy, a Republican representing northern Wisconsin, appeared on the Sunday political talk show “UpFront with Mike Gousha” with only good things to say about bill. It will boost the middle class and should ultimately decrease the national debt, he said.
Plus, Duffy stands by an earlier claim that if Republicans don’t pass the bill, Republican candidates will get “absolutely destroyed” in 2018 elections.
“If you don’t fix (health care) and you don’t get tax reform, Republicans would not have kept the promises that they made to their constituents,” he said.
Democrats were quick to criticize the plan, which they see as favoring big business, and have called it “a giveaway to corporations and the wealthiest.” Duffy denied this, saying that not only would the plan benefit middle-class taxpayers in his district, it was really the Democrats who were fighting for the interests of the nation’s wealthiest.
Duffy said that under the new plan, a family of four making $59,000 a year would receive a 75 percent reduction in their federal income tax (or savings of about $1,200). Ryan has also touted this fact, although it appears that the benefit may fade away over time
Duffy also said cutting the corporate tax rate would keep jobs in America, creating a “healthy business environment where a lot of our people work.” He said that although liberals try to paint a picture of “economic warfare” between the middle and upper classes, they were the ones arguing in favor of those upper classes.
“When we we say, okay we’ll oblige, we’re not going to lower taxes for high-income Americans and we’re actually going to take away some of their loopholes, guess what they do, Mike? They complain,” Duffy said.
He was specifically referencing part of the plan that lowers the ceiling on the size of a home mortgage that can take advantage of an interest deduction, from $1 million to $500,000.
“In my district, people don’t have $500,000 homes. They don’t have $800,000 homes. But it’s the Democrats who say, oh my goodness, we should be able to write off the interest on a $1 million home. And they’re fighting to keep that exemption in the tax code because they really play to wealthy Americans,” he said.
Duffy said not only does the plan boost the middle class, he claimed that despite an analysis showing the bill will decrease government revenue by $1.5 trillion over the next decade, the tax cuts will promote economic growth, effectively decreasing debt.
“The fundamental question becomes, can you fix the debt by taxing people more?” Duff said. “And I think the answer to that is no, because you don't bring in more revenue with more taxes. The way you bring in more revenue is you grow your economy.”
Host Mike Gousha challenged the idea, saying that historically, tax cuts have not led to 3 percent growth. Duffy didn’t agree, pointing to Ronald Reagan and John F. Kennedy-era tax cuts, which he said led to “explosive growth.”
“Letting people keep more of their money and spend their money, instead of guys like me in Washington; they know how to spend their money better than Washington does,” Duffy said.
After addressing tax reform, Duffy said he was not worried about what the recent indictment of Paul Manafort, Trump’s former campaign chairman, might mean for Trump.
“So you have his campaign manager, who before he met Donald Trump and ran the campaign, might have had some shady activity. That has no bearing on the Democrat allegation of collusion between Donald Trump and the Russians,” he said.
Duffy said that with Washington “leaky like a sieve,” if Donald Trump had colluded with Russians, it would have been made public by now.
Consistent with talking points used by other Republicans appearing on Sunday talk shows, he said allegations of collusion were a “non-story that’s trying to push a Democrat narrative,” and said there was a need to investigate Democrats.
“Hillary Clinton is the one who ended up paying Fusion GPS along with the DNC, that ended up paying Russians for dirt on Donald Trump,” he said. “I mean, that was the collusion.”