The GOP tax bill otherwise known as the “Tax Cut and Jobs Act” was passed by the House with a vote of 227-205.
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Rep. Ron DeSantis (R-FL) on Thursday said if the tax bill doesn’t get passed in the Senate, the consequences could be fatal for the economy.
“There has been a lot of expectations built into the market, built into the economy that we were going to see a good tax reform bill this year, and so if that doesn’t happen, I think you could see some immediate economic effects. I think you could potentially see some market selloffs,” he told FOX Business’ Trish Regan on “The Intelligence Report.”
The Senate version of the tax plan, which is working its way through the Finance Committee, is facing some criticism for delaying a drop in the corporate tax rate.
DeSantis believes that the corporate tax rate needs to be lowered immediately, otherwise the economy may suffer.
“You don’t want to delay a business tax cut like that because it is going to change behavior. It’s going to cause businesses to do less in 2018 that could help spark an economic downturn,” he said.
DeSantis said the GOP lawmakers that voted against the “Tax Cut and Jobs Act” could be swayed if the elimination of the individual mandate is included in the reform.
“If you looked at the folks that voted no, I think that was almost entirely because of the state income tax deduction being removed. I think that can be fixed by repealing ObamaCare’s individual mandate and using the savings from that to lower rates for everybody, so that folks who are losing a state income tax deduction at least have a corresponding reduction in rates,” he said.