
The president didn’t provide any details on the proposal, which would follow a landmark tax overhaul last year that Republicans had hoped would ensure they’d keep control of Congress after the midterms.
The overhaul, which has been criticized for mainly benefiting the wealthy and corporations, hasn’t helped GOP candidates as much as Republicans thought it would. Many forecasters believe Democrats are likely to take the House.
“We’re looking at a major tax cut for middle income people,” the president told reporters on Saturday after a rally in Elko, Nevada — part of a three-state swing through the West to bolster support for Republican House, Senate and gubernatorial candidates. “Not for business at all; for middle-income people.”
Trump’s tax overhaul has also been faulted for adding significantly to the government’s budget deficit. It’s possible that a second round of tax cuts could even face resistance from some Republicans concerned about increasing the deficit even more.
No Democrats supported last year’s tax bill, and they’ve been critical of plans for the second round of tax cuts since they were first discussed by Republicans. Unless offset by spending reductions, any new tax cut would add to the deficit, which reached $779 billion in Trump’s first full year in office.
Trump said Representative Kevin Brady, chairman of the House Ways and Means Committee, and House Speaker Paul Ryan are working on the possible legislation. He added that the plan could be announced as soon as Nov. 1. Elections that will decide the control of Congress will be held on Nov. 6.
The Republican-led House passed legislation last month that would make permanent the 2017 tax cuts for individuals and pass-through businesses which otherwise would expire at the end of 2025. That measure is unlikely to be taken up in the Senate anytime soon, as GOP leaders are hesitant to push a bill they don’t expect could garner the 60 votes needed to pass.