Sen. Ted Cruz blasted the House GOP on Tuesday for a tax plan that will raise taxes for individuals living in states such as New York, that have a high tax.
He said that raising taxes on these people would be a “mistake” because there should be tax cuts for everyone.
Cruz has teamed up with fellow conservative Sens. Tom Cotton (R-Ark.) and Rand Paul (R-Ky.) in calling for tax reform to include language repealing ObamaCare’s tax penalty on people who don’t buy health insurance.
The provision would raise an estimated $300 billion to $400 billion over the next decade, which Cruz and other Senate conservatives say could be used to lower individual tax rates even further.
Cruz said, “There are some taxpayers who are losing exemptions, particularly in some high-tax states like New York or California that could conceivably be paying higher taxes. I think that is a mistake. I think tax reform needs to cut taxes for everybody.”
The New York Times reported Tuesday that the House bill would raise taxes on one-third of all middle-class families next year.
Cruz argues that repealing the individual mandate will give members of the tax-writing committees of the Senate and House more leeway to cut rates, so that no one sees their taxes go up.
He said, “One of the real virtues of repealing the individual mandate, number one, [is] every Republican in the Senate has voted to repeal the individual mandate, 100 percent of us.”
Cruz also argued that tax plan will hit nearly 7 million Americans “who are predominantly lower and middle income.”