President Donald Trump's drive to overhaul the U.S. tax code cleared a critical hurdle when the Senate approved a budget blueprint for the 2018 fiscal year. Fred Katayama reports.
President Donald Trump expressed optimism Friday over the prospects for passing his massive tax cut plan. He said Republican Senator Rand Paul would back the tax measure. He said this the day after the Senate approved next year's budget and cleared a critical hurdle for his tax code overhaul. The budget adds up to $1.5 trillion to the federal deficit over the next decade in order to pay for Trump's tax cuts. The president's plan is to slash the corporate income tax rate from 35 to 20 percent to help create jobs and boost wages for blue-collar workers. But Democrats say Trump's plan benefits the wealthy, raises taxes on some middle-class Americans and increases the federal deficit. Event Shares' Ben Phillips runs TAXR, an ETF designed to cash in on tax reform. (SOUNDBITE) BEN PHILLIPS, CHIEF INVESTMENT OFFICER, EVENT SHARES (ENGLISH) SAYING: "So we do think there is enough of an emphasis within the Republican party to push through a bill. And last night Senate budget resolution opened the door to the potential reconciliation process, which means that the Senate and the House could pass the bill without filibuster from Democrats. So, they could, as some people have said steam-roll a bill through and get it pass. Again, we think this is a key priority for Republicans in the near-term and it could happen as soon as year-end." After failing to approve Trump-backed legislation to overturn Obamacare, Republicans are under intense pressure to succeed on tax reform.