Are Blue Dog Democrats Preparing to Side with the GOP on Tax Reform?

It looks as if the Nancy Pelosi anti-business strangle-hold on the House Democratic caucus may be weakening just a bit.

The Blue Dog coalition which I thought died years ago, published a document saying it’s open to lowering business taxes and other parts of the GOP tax plan, the first significant sign of a crack in Democratic opposition to the GOP approach.

However, there is still a long way to go before they are in the same neighborhood as the Republicans.

The Blue Dog Democrats “plan” has five points:

1. Republicans must abandon the failed, partisan reconciliation process for major reform, and follow through with the expectation of using an open, bipartisan process and regular order.

2. Tax reform must be credibly revenue neutral, and unrealistic, rosy economic-growth projections should not be used to offset the costs of tax reform or tax relief.

3. The middle class must be the priority, and tax reform should not shift the distributional balance to the wealthy.

4. American companies need a more competitive corporate tax rate and structure in order to maintain their ability to compete globally. Congress must also account for the needs of small businesses when it comes to setting tax rates.

5. We should consider using tax reform as an opportunity to address the funding challenges for the Highway Trust Fund.

 

The Blue Dog proposal comes as Republicans are trying to build support for their nine-page tax framework, released last week, which faces opposition from many Democrats and objections raised by a handful of GOP lawmakers.

Tax-writing committees in the House and Senate must now settle some of the most divisive issues, including where to set the top individual income tax rate and whether cuts should be paid for…

 

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