Tax reform efforts must remove "anti-growth" Obamacare tax increases, said Grover Norquist of Americans for Tax Reform. Speaking on CNBC on Friday, the tax reform advocate said that the health care bill being considered by Senate Republicans will hinder economic growth. Released on Thursday, the revised legislation will retain some Obamacare taxes that helped to finance the law's expansion of coverage. These include a surcharge of 3.8 percent on high-income earners.
Republican Sen. John Cornyn of Texas admitted earlier this week that is where it "seems to be where we're headed." On Friday, Norquist said on CNBC's "Squawk on the Street," "There are some politicians who wanted to spend more money and they got what they wanted, which damages economic growth."
Norquist's caution appears to square with Office of Management and Budget Director Mick Mulvaney, who told CNBC on the same day that the nation's gross domestic product would see a boost if Obamacare is eliminated.
Most Obamacare tax increases, and revisions made, will make the Republicans' bill easier to pass, said Norquist, who also predicted that additional taxes may be eliminated in a forthcoming tax overhaul by President Donald Trump. Norquist envisions that tax reform will be "very pro-growth but we are going to have to back up and get rid of the anti-growth taxes that are not yet eliminated in the Obamacare repeal."
In concert with Treasury Secretary Steven Mnuchin, who has said that Trump administration will accomplish some tax reform by the end of 2017, Norquist predicted that it will come in September or October.