President Donald Trump’s tax overhaul could cost U.S. jobs, with businesses facing a backlash as their tax bills are projected to grow at a faster pace than consumer spending.
The Senate bill, known as the “Better Way,” is expected to pass Congress this week, though some Republican lawmakers have voiced concerns about how it would affect their constituents.
While the legislation has a few elements in common with some of Trump’s proposals, the bill does not include a single item that could lead to layoffs, a major source of anxiety for the industry.
“I’ve never seen a piece of legislation that is so poorly thought through, so poorly crafted, and so poorly implemented,” said Steve Green, president of the Chamber of Commerce.
“The most important thing I’ve learned is that if you have a bill that is bad, the majority of the American people will vote against it.”
The Chamber is one of several conservative groups pushing for a rewrite of the tax code, which has been widely criticized as regressive and expensive.
The legislation would impose a 2.8% tax on high-earners and other high-income earners, with the wealthy paying at least half.
The Tax Policy Center estimates that the plan would cost the federal government $8 trillion over the next decade.
In addition to the 2.9% tax, the plan includes a 10% corporate tax rate and a 25% Medicare tax on the wealthy, with a lower rate for low-income households.
It would also eliminate a credit for working parents, but it would offer a refund to families who itemize deductions.
The bill would cut the estate tax, eliminate the deduction for state and local income taxes, eliminate income tax deductions for child care, and allow the government to keep up to $10,000 of assets that are exempt from federal taxation.
The biggest sticking point is that many Republicans are wary of repealing a key element of the legislation, the Alternative Minimum Tax, which would allow the federal income tax to be refunded to taxpayers whose incomes exceed $250,000.
The GOP plan would also repeal the state and municipal income tax, but leave the individual tax rates intact.
The tax overhaul is expected pass the House this week.
But Trump’s approval rating has dropped dramatically in recent weeks, with voters in the midterms viewing the president as weak, dishonest and not capable of leading the country, according to a CNN/ORC poll released on Thursday.
Trump has repeatedly criticized Democrats for supporting the legislation.
“Democrats in Congress and in the White House have been saying the American tax system is rigged.
But it’s rigged for the rich and it’s not rigged for anyone else,” Trump said during a speech in March.
“You know, it’s just not fair.
It’s not fair, it doesn’t work.”
Trump has also threatened to veto the Senate bill if it doesn�t include a provision that would give tax cuts to corporations and individuals who make more than $200,000 per year.
This provision would exempt corporate income and dividends from taxation.
Democrats and many Republicans oppose the idea, arguing it will raise taxes for middle-class Americans.
The chamber’s Green said that, in the Senate, the GOP bill would allow “corporate welfare” by allowing companies to write off their tax liabilities and exempt the top 1% from federal taxes.
He also warned that the legislation would lead to more job losses for low wage workers.
“If the American public gets the sense that this is going to lead to a lot of job losses, then they’re going to be very upset with this legislation,” Green said.
“It’s going to hurt the middle class, it�s going to take a lot off of the middle-income Americans.”
Trump is currently in Europe for a three-day summit, where he is expected at the NATO summit in Brussels.
He is also expected to hold meetings with the leaders of France, Germany and the United Kingdom, and with the leader of Japan and India.
Trump and his aides have been pushing for the Senate to pass a version of the bill, but some lawmakers have expressed reservations about its overall impact on the economy.
Republicans are concerned that it will add to the deficit and hurt the economy, particularly when the legislation is compared with other tax changes.
“When you look at the big picture, the bigger the tax cut, the more money there is in the economy,” Green told CNN.
“That’s what the American workers deserve.”
The House Ways and Means Committee is expected on Thursday to vote on a proposal from the GOP that would repeal the Alternative minimum tax, which was originally passed by the Senate.
House Republicans also plan to vote to eliminate the child tax credit, a tax break that was originally included in the GOP tax plan.
The House GOP plan also would eliminate a $1,500 tax credit for families who are working but are earning less than $250 a year.
The Republican plan would eliminate the credit entirely, but also eliminate the