Posted on 09/11/2018 9:42:24 AM PDT by SeekAndFind
This week, House Republicans are poised to release what they are calling “Tax Reform 2.0," their update to last December’s massive rewrite of the tax code. GOP leaders promise a floor vote by the end of the month.
As a matter of substance, and against the backdrop of December’s historic changes, the new proposals are more “0” than “2." But as a matter of politics, they put Democrats in a tough position heading into the midterm elections. Still Democrats may have some options.
Based on what we know from brochure-like previews, the centerpiece of Tax Reform 2.0 will be to “make permanent” some of the more politically appealing tax cuts passed last December. Just a bit of background is necessary to understand what this does and does not mean:
Under complex congressional rules, in order to get last year’s tax reductions through the Senate, Republicans had to insure that the revenue loss over 10 years came in under $1.5 trillion. Republicans’ wish list of cuts would have cost more than that. So they worked into the law that some tax reductions would automatically expire within the 10-year window.
In deciding precisely how to hit the $1.5-trillion mark, Republicans had a number of variables to play with and a number of dynamics to take into consideration. The basic mechanical dynamic: The more substantial the expiring cuts were on a per-year revenue-loss basis, the later in the window they could expire.
The basic political dynamic was the ratchet effect caused by the fact that law changes, including repeals, have to jump three separate hurdles: House, Senate and president.
That means that when a law divides along party lines, the opposition party needs to gain control of all three decision-makers to change its course.
(Excerpt) Read more at thehill.com ...
The first bill, the Protecting Family and Small Business Tax Cuts Act of 2018 (H.R. 6760), includes several key changes to the individual income tax:
The Tax Foundation previously scored making the individual income tax changes from the Tax Cuts and Jobs Act permanent. The change would increase long-run GDP by 2.2 percent and create 1.5 million new full-time equivalent jobs. These changes are estimated to cost $166 billion a year on a static basis and $113 billion on a dynamic basis.
The second bill is the Family Savings Act of 2018 (H.R. 6757). This bill would make two large changes. First, it includes a number of reforms to retirement accounts, similar to those from the Retirement Enhancement and Savings Act of 2018. Second, it would create small universal savings accounts. Individuals would be able to contribute up to $2,500 into the accounts on an annual basis, with any withdrawals being tax free.
The third bill, the American Innovation Act of 2018 (H.R. 6756), would allow businesses to deduct their start-up costs. Firms could deduct the lesser of their start-up expenses or $20,000. The $20,000 amount would be reduced for firms with more than $120,000 in expenses. Expenses that could not be deducted immediately would be amortized over 180 months.
This removes the ONLY complaint the RATS can make about the Trump Tax bill.
On Maria Bartiromo’s show, Sunday, she backed a RAT consultant into the corner on this, forcing her to answer WHY she claimed the tax bill unfair.
“Because it’s not permanent.”
These people are stupid.
Where’s the wall money?
RE: Where’s the wall money?
That’s separate from tax Reform.
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Alright, while they are at it the weasels need to tack in funding for the wall and make that “permanent” as well. That is what people really care about.
The Democrats have been “screwing” the American people for decades. About time we started “to tighten the screws on Dems with Tax Reform 2.0” and any other weapon we legally have.
“GOP leaders promise a floor vote by the end of the month.”
Great. Bring it ...
Where is the floor vote on wall funding?
If debt doesn’t matter, why do we even pay income taxes?
Considering that the tax decrease has increased revenue, shouldn’t they be able to pass it without that 10 year limitation?
Good!
The GOPe has chosen to run on the economy and not on *all* the issues that lit a fire under we Trump voters. It appears that the Chamber of Commerce is once again in control & IMO that makes holding the House harder in November.
"This week, House Republicans are poised to release what they are calling “Tax Reform 2.0," their update to last December’s massive rewrite of the tax code [??? emphasis added]."
FR: Never Accept the Premise of Your Opponent’s Argument
Regarding this election year dog-and-pony show, please consider the following.
Aren’t these the same House RINOs that last year gave Pres. Trump an inexcusably long, very expensive Omnibus spending bill, about half the expenditures in the bill not compliant with Congress’s Section 8-limited powers, a bill where Trump addressed the nation, warning obstructionist, anti-Trump lawmakers that he would never sign another spending bill like it again?
Trump Signs Omnibus Spending Bill: I Will Never Sign Another Bill Like This
Patriots are reminded that they need to fire as many career lawmakers as they can in the 2018 midterm elections, replacing them with state sovereignty-respecting, pro-Trump patriot lawmakers who will support Trump’s vision for MAGA.
After midterm elections, and until the 16th and ill-conceived 17th Amendments are repealed, patriots can work with new patriot lawmakers to have the following printed at the top of the universal, post-card sized tax return.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States."—Justice John Marshall, Gibbons v. Ogden, 1824.
Tax reform has nothing to do with wall funding.
I guess I should have said, where is the separate vote on wall funding?
No they ARE turning the screws on them.
RE: Considering that the tax decrease has increased revenue, shouldn’t they be able to pass it without that 10 year limitation?
Note that despite the increased revenue, the BUDGET DEFICIT remains at historic highs.
Unless we control spending (which went up EVEN FASTER than revenues), we will ALWAYS have to either print money or go into debt.
Wall funding? The only politician in DC that really cares about a serious wall is Trump. Trump will tweet about it and that’s about all that will happen except for a few sections built here and there.
It’s like that scene in “City Slickers” where the guy laughs as he tells them “you guys thought this was real? Unbelievable ...”
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