WASHINGTON (AP) - 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.
(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)