Sen. Steve Daines: I need small business changes before voting yes on tax bill

Sen. Steve Daines on Monday said he needs to see more changes to how small businesses are treated before he can support the GOP’s tax overhaul plans, handing Senate Republican leaders another potential “no” vote ahead of a possible floor vote this week.

“I want to see changes to the tax cut bill that ensure main street businesses are not put at a competitive disadvantage against large corporations,” the Montana Republican said in a statement.

Mr. Daines said two-thirds of job creation comes from “main street businesses” and he’s doing what he can to make sure America is stronger and more competitive.

“Before I can support this bill, this improvement needs to be made,” he said. “I remain optimistic and will continue working with my colleagues to find a solution.”

Mr. Daines appears to have similar concerns as Sen. Ron Johnson, Wisconsin Republican, who said he’s opposing the Senate tax plan for now because of how it treats smaller businesses compared to large corporations.

Both the Senate and House tax plans create new benefits for smaller “pass-through” companies that file their taxes as individuals and are often taxed at rates higher than the 35 percent corporate tax rate.

Both plans also slash the corporate rate to 20 percent, which many Republicans and conservatives do support.

But people such as Mr. Daines and Mr. Johnson are worried that the plans don’t do enough to make those smaller companies sufficiently competitive with the larger corporations who stand to benefit from that 20 percent rate.

Like Mr. Daines, Mr. Johnson has said he’s working with his colleagues so he can get to a “yes” on the final bill.

But if both senators remain opposed to the final package and no Democrats support it, GOP leaders would have no margin for error to muscle the plan through the Senate.

Republicans control 52 of 100 seats in the chamber, and can advance the plan with a simple majority under fast-track budget rules.

Leaders did get a boost Monday when Sen. Rand Paul of Kentucky — the lone Republican senator who voted against the 2018 budget plan last month — announce that he supports the tax package as it stands now.

But several other GOP senators have expressed concerns in other areas, such as the legislation’s effect on federal deficits, and so more changes are likely in store before a potential floor vote later this week.

“This is not a finished product,” Sen. James Lankford, Oklahoma Republican, told reporters Monday. “This is a product that’s still coming together.”