House Republicans applauded and cheered after they voted for their long-anticipated tax reform plan Tuesday.
“This is about expanding opportunity to people who are striving to make the most of their lives”, House Speaker PaulRyan, R-Wis., said before the vote Tuesday. However, lawmakers will have to vote again on Wednesday after the Senate parliamentarian rejected three provisions in the bill. The president tweeted his congratulations to GOP leaders and “all great House Republicans who voted in favor of cutting your taxes!”
It scales back a popular deduction for state and local taxes, repeals a key tenet of Barack Obama’s Affordable Care Act and allows drilling in the Arctic National Wildlife Refuge.
House Ways and Means Chairman Kevin Brady, R-Texas, discusses progress on the tax bill with reporters at the U.S. Capitol on December 15, 2017. For individuals, the bill increases the amount that can be exempted from the AMT. Trump has promised to sign the bill – which would represent the only major legislative accomplishment that the GOP has gained since taking control of both the legislative and executive branches in January.
The bill would slash the corporate income tax rate from 35 per cent to 21 per cent.
More than two thirds see the bill as benefiting primarily the wealthy, with nearly four in 10 (37%) saying that, if it becomes law, their own family will be worse off.
Republicans also capped the income eligible for the full 20-percent deduction at $315,000 for married couples and $157,500 for individuals.
Initially, the tax bill included a provision that would repeal an itemized deduction of healthcare expenses. The reductions in personal income tax rates are temporary, ending in 2026. Now, they will have to wait at least one more day. A CNN poll released Tuesday found only 33 percent of Americans support it, with 66 percent of the country believing it does more for the wealthy than the middle class. But they included a “capital element” in the formula for determining eligibility beyond those thresholds, presenting a lucrative tax break for some, including wealthy owners of commercial property, said tax experts.
Numerous individual tax break are set to expire in coming years. Under the old system, a company like General Electric could make $40 billion in profit between 2008 and 2015 and not only pay no taxes but actually get a rebate of $1.4 billion, courtesy of taxpayers like you.
“No one is ever upset when you cut their taxes”. They’ve been candid that when they get their tax cut they’ll use it for things like stock buybacks and dividends, sending the money back to wealthy shareholders and not to their employees.
Jubilant Republicans pushed on Tuesday to the verge of the most sweeping rewrite of the nation’s tax laws in more than three decades, a deeply unpopular bill they insist Americans will learn to love when they see their paychecks in the new year. “That’s going to be a little bit late for some folks”, he said, referring to GOP congressional candidates.
“For a lot of folks its going to be the Democrats who get the luxury – just as Republicans have had for awhile with President Obama – of just saying ‘No, everything is awful.’ And unfortunately that sort of fits the mood of the country”, said McHenry.
But his certitude ignores recent history.
The GOP tax bill polls far worse.
But this bill brings down the rate without eliminating most of the loopholes that allow so many very big corporations to pay no taxes at all.
In the largest overhaul of the USA tax code in 30 years, Republicans in mere weeks steamrolled over the opposition of Democrats to slash taxes for corporations and the wealthy, while offering mixed, temporary tax relief to working American individuals and families.