Central Montana Times

U.S. Senator Steve Daines appeared on CNBC's Squawk Box to discuss a letter he led to President Trump, expressing opposition to any tax package that offers only temporary relief from upcoming tax hikes.

Daines emphasized the importance of making the 2017 Trump tax cuts permanent. He stated, "The single most important thing Congress can do to keep this economy growing is to make the Trump tax cuts of 2017 permanent." He highlighted the potential $4.3 trillion tax increase facing small businesses and corporate America if no action is taken by next year.

Daines shared an example from a small business owner in Montana who expressed concern over a looming 30 percent tax increase, which is affecting her business planning. He stressed that permanence in tax policy would remove uncertainty for businesses and aid long-term investments in research and development, crucial for global competitiveness.

He noted, "When you look at what we need to do to invest long-term in research and development, capital investments to compete globally, the most important thing we can do is take away the uncertainty of Washington and make the Trump tax cuts permanent."

Daines mentioned his openness, along with other committee members who signed the letter, to adjust tax policies as needed but insisted that permanence should be the starting point. He recalled how lowering tax rates in 2017 prompted similar actions by China and argued that such measures are vital for economic growth and innovation.

He also pointed out that increasing GDP by one percent over a decade could result in a $3 trillion rise in tax revenues. Daines criticized current scoring methodologies used in Washington for being static rather than dynamic, arguing they underestimate revenue increases from lower taxes—a trend he claims was demonstrated with the 2017 tax cuts.