If 20 Republicans were willing to vote to hold up even the discussion, it’s rather reasonable to think many more would follow at a real vote.
But as the state’s Democratic delegation noted in an October 23 letter to the leaders of Congress’ tax-writing committees, roughly 83 percent of California households claiming the deduction in 2015 earned under $200,000. “What are we expecting to have happen with this bill?” Democrats, with 28 votes, balked at the package because it didn’t contain a hike in the gross production tax or raise the income tax on high wage earners.
The Senate passed the measure last week and the House endorsed it without changes, a step created to allow Republicans to move quickly to the tax measure in hopes of passing it into law this year. “Tax reform will unleash the free market again and ensure all Americans have the opportunity to grow”. But Neal predicted that a full-fledged reform of the tax system will be hard.
Trump, who promised major tax cuts as a candidate last year, has asked Congress to pass the tax legislation by the end of the year.
But as they rush forward, lawmakers have not resolved basic questions about how the tax overhaul would affect the wealthy, the middle class or lower-income earners. “We are not comfortable going higher than that”, Treat said.
GOP leaders scrambled in recent days to overcame opposition from House conservatives unhappy about deficits and debt, and lawmakers from high-tax states such as NY and New Jersey, who are upset about plans to curb the state and local tax deduction. But with 20 Republicans voting no, including some in high-tax states who were anxious that Trump’s plan to end certain tax breaks would harm their constituents, the vote was a nailbiter. Neal said he would oppose any changes that affect retirement savings.
Information for this article was contributed by Mike DeBonis and Ed O’Keefe of The Washington Post; by Andrew Taylor of The Associated Press; by Thomas Kaplan of The New York Times; and by Frank E. Lockwood of the Arkansas Democrat-Gazette. But Neal noted that some Republican states, like SC, would also be affected.
The bill was passed despite opposition among Republicans over a plan that removes State and Local Tax deduction in the tax reform plan.
House Democrats have made it clear, they will not support a measure without a GPT deal. The tax bill would need just 50 votes and the support of the vice president to pass. As to whether that might actually happen, Neal said, “I’m doubtful”.
Republicans also want to merge seven tax brackets into three, while increasing the standard deduction from $6,300 to $12,000 for individuals and from $12,600 to $24,000 for married couples filing jointly. That means improving education.
Now new wells are taxed at 2 percent during their first 36 months of operation.