Few obstacles to the left, G.O.P. Confident tax reductions will be signed this month – tech2.org

Few obstacles to the left, G.O.P. Confident tax reductions will be signed this month


Mr. Trump echoed that optimism by writing on Twitter that "we are one step closer to delivering MASSIVE tax cuts" and that he expected to sign a final invoice before Christmas.

We are one step closer to offering MASSIVE tax cuts for working families across America. Special thanks to @ SenateMajLdr Mitch McConnell and President @ SenOrrinHatch for guiding our bill through the Senate. We hope to sign a final invoice before Christmas! pic.twitter.com/gmWTny3SfS

Donald J. Trump (@realDonaldTrump)
Dec. 2, 2017

The differences between the measures, although substantial, do not seem problematic enough to prevent Mr. Trump from achieving that goal, which would be his first major legislative victory.

Among the problems that will have to be resolved: According to the Senate bill, tax cuts for people would expire at the end of 2025 to mitigate income losses, and the mandate for people to get insurance health under the Affordable Care Act would be repealed. The House bill does not have these provisions.


See how all Senators voted on the Republican bill on taxes

The Senate pbaded the final bill, 51-49. A list of each senator's vote on the bill and the selected amendments.

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The two versions also use different methods to try to prevent multinational companies from transferring their profits outside the United States to countries with lower taxes.

In addition, the House bill would establish a new 25 percent tax rate for profits earned by small businesses and other so-called transfer companies, while the Senate bill would grant the owners of those companies a deduction of 23 percent on past income, which is taxed at rates for individuals.

The House bill would eliminate the alternative minimum tax for corporations and individuals and eventually eliminate the estate tax. The bill of the Senate would maintain the A.M.T. and cut, but not finish, the individual A.M.T. and the estate tax.

Even so, the bills share much of the same architecture and many central elements. Each would reduce the maximum corporate tax rate to 20 percent from 35 percent. Each would eliminate deductions for state and local income taxes, almost double the standard deduction for individual taxpayers, and reduce individual tax rates. Due to these provisions, both bills are projected to reduce taxes initially for the bulk of middle clbad taxpayers, and will raise them to millions of other middle clbad families.

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The House bill would retain a deduction of up to $ 10,000 per year in state and local property taxes. The Senate bill would also do so thanks to a last-minute change that helped get support from Sen. Susan Collins of Maine.

Mr. Trump, after insisting for weeks that the highest corporate rate is reduced to 20 percent, said on Saturday it could end up being a little higher, 22 percent. "It could be 22 when it comes out, but it could also be 20," he told reporters outside the White House. "We'll see what finally comes out."

Such an increase would give Republicans additional revenue to pay other tax cuts in the review, which could ease their way to final approval.

Legislators and lobbyists will fight furiously over the small details in a consensus bill, but party leaders show little concern that major problems spoil the plan. Speaker of the House of Representatives Paul D. Ryan of Wisconsin said early Saturday that the House would move "quickly" to a conference committee. Members of the House plan to return to Washington on Monday, a day earlier than planned, to vote and proceed to the conference.

"Now is the time to take the best of the House and Senate laws, further strengthen them in a conference" Representative Kevin Brady of Texas, chairman of the Ways and Means Committee, said in a press release on Saturday, "and will finalize a law that will dramatically improve the lives of Americans in the next generations"

. How many people in your income group would receive a tax reduction?

The Senate bill has been marketed by Republicans as a tax cut for the middle clbad. How would people in your income group fare?

After the vote in the Senate, some enthusiastic Republicans seemed to hint that a conference might not even be necessary. "We'll see," said Senator Orrin G. Hatch of Utah, Republican chairman of the Senate Finance Committee, when asked if he thought the House could pbad the Senate bill.

Sen. Ted Cruz, Republican of Texas, suggested that such a movement of House Republicans was possible, but said: "That will be a matter for the leaders of the House." However, a senior administration official said Friday night that this was not likely.

If Republicans are going to the conference, the House of Representatives and the Senate would have to vote again to approve the package that resulted from those negotiations, before sending the bill to Mr. Trump. If the House simply approved the Senate bill, it would go directly to Mr. Trump.

Unable to stop or stop the bill, because Republicans are using a process that allows them to bypbad a legislative obstruction, the Democrats were left fuming over the tax plan and the process by which it was rushing toward the approval.

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Democrats charged that the Senate bill had been laden with last-minute favors for the rich and well-connected at the expense of the middle clbad, and complained that the text of the bill had been published only a few hours before the vote, with handwritten changes scribbled on the margins. The detractors saw a list detailing the changes before they did, the Democrats said.

"Is this how Republicans are going to rewrite the tax code?" Senator Chuck Schumer of New York, the minority leader, asked in a speech. before the vote. "Scribbled like something on the back of a napkin … behind closed doors … With the help of the K Street lobbyists … If that's not a recipe for cheating the middle clbad and loosening the gaps for the rich, I do not know what it is ".

As a group, the Democrats seemed resigned to the fact that there was little they could do to stop the tax review of its enactment.

"I have the feeling that they can have a conference only by name," Senator Ron Wyden of Oregon, the top Democrat of the Finance Committee, said after the vote.

But Mr. Wyden predicted that Republicans would finally regret his victory. "The American people will be stunned when they see what is really in this," he said.

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