WASHINGTON (AP) — A Senate Republican says GOP leaders are working with on a potential revenue “backstop” in case the party’s tax cut legislation fails to produce hoped-for levels of growth and tax receipts.
Oklahoma Sen. James Lankford said he and other Republicans are working on “just-in-case options” to add to the measure during Senate floor debate this week. He appears to be talking about a mechanism that could automatically force tax rates back up if revenues fall short.
Lankford cited the experience of states like Oklahoma and Kansas, which are now facing big shortfalls after aggressively cutting taxes. He added that lawmakers “should build in the ‘what if?’ What if this doesn’t work?”
The Republican tax plan would cut corporate and personal taxes by $1.5 trillion over the coming decade. Lawmakers are working on ways to pay for those cuts.