By PETER LEVY, AP WriterAhead of the president’s first major speech on the economy, a bipartisan group of senators are proposing a $1 trillion tax cut for businesses and a temporary boost for the economy to help the president get his message out.
But while the president has repeatedly said he is serious about his goal to get Congress back on track and a bill to help him pass it by Thanksgiving, the prospects of the plan’s passage remain uncertain, with a handful of Republican senators threatening to filibuster it.
Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y., on Friday unveiled a plan to provide tax relief for business owners who are affected by the expiration of tax cuts that expire at the end of next year.
The Senate proposal would allow businesses to take advantage of the temporary tax breaks by selling their assets and putting them in a blind trust.
The plan would extend for an additional three years the temporary relief for those who make less than $250,000.
The plan would also include temporary tax relief on capital gains and dividends, which is the first time such a provision has been included in a tax cut proposal since 2009.
It would also provide $100 billion to expand apprenticeship programs.
The Senate plan would provide $400 billion over 10 years to build the infrastructure necessary to make college more affordable.
The bill would extend a temporary benefit for those with disabilities and a $50 million loan to states that were hit hard by Hurricanes Sandy and Irene.
The measure would also expand the Earned Income Tax Credit for low- and middle-income workers and a credit for high-income Americans.
The bipartisan measure would extend the child tax credit for up to $1,000 a month, and increase the credit for couples filing jointly to $500 a month.
The package would also add $3.5 trillion in additional debt and reduce the debt-to-GDP ratio.
A bipartisan group has been pushing the bill to be passed in the next few weeks, as well as for a full Senate vote.
Sen. Bernie Sanders, I-Vt., is leading a bipartisan effort to advance the plan.
The president, however, said the measure is a nonstarter, saying in a statement Friday that he would not support a tax increase.
In addition, he’s not interested in the Senate bill because it contains more than $1.5tn in revenue-raising provisions that would require approval by both chambers of Congress.
The tax plan is one of the two major tax bills to be unveiled by the new Republican administration.
Trump’s comments have come at a time when lawmakers are debating how to deal with the $19.6 trillion debt that is the biggest drag on the U.S. economy.
The debt ceiling is scheduled to be raised at the beginning of the month, which would give Republicans more time to come up with a plan.
The new House speaker, Kevin McCarthy, is also scheduled to unveil a bill on Thursday.
But a potential delay in the debt ceiling raises the prospect of further economic pain for the middle class.
The debt ceiling, which has been in place since December, will require a two-thirds majority in the House and Senate to pass a measure that would increase taxes.
In the last few months, Trump has called on Congress to raise the debt limit, and his aides have repeatedly said that he is open to the idea of using the $1tn to reduce the deficit.
But Republicans have resisted that proposal, saying they would prefer to pass legislation that would reduce the country’s $19 trillion debt.
Trump has said he would like to see Congress raise the borrowing limit for the first of the year, which could be in late September.
On Friday, McConnell, Schumer and a handful other Senate Republicans urged the president to use his powers under the Congressional Review Act to stop the debt increase and provide relief to businesses.
“The president should not take this opportunity to raise interest rates on Americans to avoid a meaningful tax cut,” the senators wrote in a letter.
“Instead, he should continue to prioritize the needs of American businesses and consumers.
He should act to deliver a fair tax cut to hardworking Americans, and we urge him to do so by the end to allow us to focus on our legislative priorities.
Congress must be given ample time to negotiate a solution that will deliver a balanced and permanent tax cut that will create jobs, spur economic growth, and provide our nation with the revenues needed to pay down the nation’s debt,” they said.
The letter comes as the Senate prepares to consider legislation to provide an increase in the minimum wage to $15 an hour by 2020.
The legislation, sponsored by Sens.
Debbie Stabenow, D.M., and Bernie Sanders of Vermont, is a major step toward raising the minimum hourly wage to at least $15.
The legislation, which also has support from Republicans, has already passed the House of Representatives.
The senators also noted that the minimum would be $7.25 an