Taxes

Revenue-neutral tax plan not 'at odds' with Trump, says top GOP tax writer

Key Points
  • Kevin Brady says he's still confident tax plan can get done by the end of the year.
  • He says Trump isn't necessarily at odds with a plan that is revenue-neutral.
Rep. Brady: No one can defend the status quo
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Rep. Brady: No one can defend the status quo

A revenue-neutral tax plan is not necessarily something President Donald Trump is in disagreement with, chief tax writer of the House of Representatives, Rep. Kevin Brady, told CNBC on Thursday.

In an interview on CNBC's "Squawk Box," the House Ways and Means Committee chairman said Trump has said he's good with losing revenue in the early years, and a strong economy will bring it back in time.

Republicans can design a plan that can "break even in the budget over the first 10 years," Brady said.

"Not only do I think that is good fiscal sense, it allows to make it permanent in the Senate, which I think is so much more pro-growth than temporary tax cuts," he said.

Treasury Secretary Steven Mnuchin has sidestepped whether the Trump administration's one-page tax proposal will bust the federal deficit, saying the plan is to "pay for this with economic growth."

Senate Majority Leader Mitch McConnell, as well as most Republican leaders, have said that any tax overhaul can't add to the growing U.S. budget deficit.

Despite some of the political turmoil in the Trump administration, Brady said he is still confident that Republicans can finish a tax bill by the end of this year. He said the GOP is working on one unified tax plan that can grow jobs and wages.

"Our members want to deliver on repeal and replace of Obamacare. They're really excited about fixing this broken tax code," he said.