President Donald Trump said Tuesday that the Republican tax plan would lift the U.S. economy to heights not seen since the administration of Ronald Reagan, delivering a speech filled with economic optimism to a receptive audience of donors to the Heritage Foundation, which has played a critical role in policy and staff matters for the Trump administration.

“Working closely with the Heritage Foundation, Ronald Reagan cut taxes to unleash the economic miracle of the 1980s,” Trump said during his address at the think tank’s annual President’s Club Meeting. “You understand that lower taxes mean bigger paychecks, more jobs and stronger growth. At the heart of our plan is a tax cut for everyday working Americans.”


Calling the existing GOP proposal a “once-in-a generation opportunity to revitalize our economy, revive our industry and renew the American dream,” the president hailed the foundation’s role in shaping policy in past administrations and urged its members to use their influence to help pass the Republican tax plan.

“The Heritage Foundation can once again help make history by helping to take this incredible idea, this proven idea, this tax cut [and] making it a reality for millions and millions of patriotic Americans,” Trump said.

The plan the Trump administration is hashing out with congressional Republicans should increase economic output, boost employment and put $4,000 in average U.S. household bank accounts every year for a number of years going forward, Trump said.

Calling it a pay raise, he urged passage late this year. “Let’s give our country the best Christmas present of all — massive tax relief,” Trump said.

The White House has been consumed this week by the Senate budget vote, which is expected to happen Thursday or early Friday. Passage is crucial for moving ahead on tax reform because it sets the parameters for any broader legislative package and will allow Republicans to approve tax cuts with a party-line vote.

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A range of administration officials — from the president to the legislative affairs shop, policy experts and communications officials — have been devoting both time and political muscle to nudging the Senate toward passage without the drama that accompanied the effort to repeal the Affordable Care Act.

“I think that everyone has a real sense of urgency over this,” a senior administration official told reporters in a Tuesday morning call. “Not just because of what it means for us politically or for members of Congress politically, but for what it means for the American people and how this is going to impact them.”

The effort to build political momentum kicked off over the weekend, when Trump invited Sen. Rand Paul (R-Ky.) to join him for a round of golf. (By Tuesday, Paul, one of the key senators the White House hoped to woo, had announced his intent to vote against the budget unless Republicans first agreed to cut billions in spending outlined in the plan.)

Trump invited Senate Majority Leader Mitch McConnell to the White House on Monday, the same day the chairman of the Council of Economic Advisers released a study that bolstered one of the administration’s core talking points — that slashing the corporate tax rate would ultimately increase workers’ take-home pay.

Later that evening, Ivanka Trump and Jared Kushner hosted a bipartisan dinner for senators at their home in the Kalorama neighborhood of Washington, where they discussed the child tax credit and debated broader questions related to tax reform, according to one guest.

The president’s speech to Heritage donors was another data point of the White House’s weeklong sales pitch. All of it was meant to culminate in Trump’s meeting with Republicans and some Democrats of the Senate Finance Committee on Wednesday at the White House, according to administration officials.

During the speech, Trump continued to pitch the plan as a boon for the middle class, for example by expanding the child tax credit and doubling the standard deduction to $24,000 for joint filers.

His address didn’t break new ground on specifics of the tax plan, which is still being crafted in Congress. Trump told listeners to call their lawmakers, particularly GOP senators, because he said Senate Democrats would probably play an obstructionist role.

After the Heritage Foundation event, the Republican National Committee called on Congress to deliver on Trump’s promise to boost the nation’s workers by passing tax reform through both legislative chambers.

“It’s time for Congress to come together and pass a budget that paves the way for the president’s tax cut plan,” RNC Chairwoman Ronna McDaniel said in a statement. “We must keep our promise to the American people — they deserve it.”

Earlier in the day, the head of the White House Office of Legislative Affairs, Marc Short, said that after making the Senate vote a top priority this week, he felt “cautiously optimistic.”

“Look, it is our top priority this week,” he said. "Everyone is very engaged.”

Potential obstacles, Short said, included some lawmakers’ health problems, potentially preventing them from making it to the Senate floor, as well as the uncertain votes of Paul and Sen. John McCain (R-Ariz.), who cast the deciding vote against repealing Obamacare.

Because it will be using the reconciliation process, allowing for expedited passage, the Senate can approve the budget with a simple majority of 51 votes, including that of Vice President Mike Pence as the tie-breaker. This gives McConnell a small margin of Republicans he can lose and still pass the measure.

If the vote fails, it will seriously slow down the White House’s effort to push through tax reform this fall — a legislative boost many administration officials see as critical to ensuring that Senate Republicans hold on to their majority in the 2018 midterm elections.

The president’s speech took place in a chilly, mostly full ballroom at the Marriott Marquis in downtown Washington, filled with donors tothe Heritage Foundation.

Initially, the crowd was warmed up by a musical duo from Minnesota, while donors milled about, snacking on hors d'oeuvres from a buffet and drinking passed glasses of wine.

Once the president took the stage, after being introduced by Heritage’s interim president, Ed Feulner, the crowd applauded vigorously. Many took out their phones to snap photos or videos of Trump.

The president thanked a short list of Heritage top officials and board members — Ed Meese, Steve Moore, Kay Coles James and Bill Walton — before delving into a list of his accomplishments: from pulling out of what he called one-sided international deals like the Paris climate deal to confronting countries such as Iran and North Korea. He also touted the appointment of Justice Neil Gorsuch to the Supreme Court, as well as the rolling back of environmental regulations.

Trump devoted the latter half of the speech to tax reform, closely linking Heritage's support to the success of past efforts.

The biggest applause inside the room came from the president’s promise to end “the horrible and very unfair estate tax.”

Aaron Lorenzo contributed to this report.

