President Donald Trump told reporters Monday that he planned to send a proposal for a 10 percent tax cut to Congress after the Nov. 6 midterm elections.
What is this tax cut?
Speaking to reporters on Monday before he flew out to a rally with Sen. Ted Cruz (R-Texas) in Houston, Trump said, "We’re putting in a resolution sometime in the next week or week-and-a-half, two weeks."
"We’re giving a middle-income tax reduction of about 10 percent," he added. "We’re doing it now for middle-income people."
Trump also said that this tax plan would be in addition to the one already in place and would focus on middle-income families instead of on businesses.
While, according to that timeline, the plan could be rolled out sometime before Nov. 6, Trump said that Congress would not get around to voting on this issue before the midterms.
“We’ll do the vote after the election,” he clarified.
Trump mentioned Saturday that he was “looking at a major tax cut for middle-income people,” but at the time did not clarify as to what that might look like.
An increase in federal spending has led to an increase in the federal deficit. The federal budget deficit was 17 percent higher for the 2018 fiscal year than it had been in 2017, and larger than any other year since 2012. The White House’s Office of Management and Budget also predicted in July that the deficit would pass $1 trillion by 2019.
Despite the tax cuts, a boost in the economy has actually increased tax revenue. However, the increase in spending has been greater than the added revenue.
In order to slow down the rapidly increasing deficit, the Trump administration would have to cut enough spending to compensate for any new tax cuts. In March, he had signed a $1.3 trillion omnibus spending package, although he swore at the time that he would “never sign a bill like this again.”
On Oct. 17, Trump asked the members of his Cabinet to cut their respective budgets by 5 percent. He suggested that some Cabinet members may be able to cut more than that.