Posted on 12/03/2017 4:16:57 AM PST by SkyPilot
Hours after the pre-dawn passage of a $1.5 trillion tax cut, President Trump suggested for the first time Saturday that he would consider a higher corporate rate than the one Senate Republicans had just endorsed, in remarks that could complicate sensitive negotiations to pass a final bill.
On his way to New York for three fundraisers, Trump told reporters that the corporate tax rate in the GOP plan might end up rising to 22 percent from 20 percent.
Moving the corporate tax rate up by 2 percentage points could raise $200 billion, money Trump might need to try to satisfy the concerns of Republicans frustrated that the plan does not reduce top individuals’ tax rates enough or of others such as Sen. Marco Rubio (Fla.), who argued that the bill should do more for low-income families.
Rubio complained Friday that colleagues would not even allow him to move the corporate rate to 20.94 percent, saying they acted as if this would be a “catastrophe.”
If the White House tries to lower the top tax rate for individuals, it would mark a sharp departure from several months ago, when then-chief strategist Stephen K. Bannon advocated for raising the top rate paid by the wealthiest Americans as a way to follow through on the populist principles Trump invoked in his campaign.
Lawmakers in both the House and Senate had fought hard to keep the corporate rate low, with the Senate late Friday rejecting a Republican-backed proposal to push it up to 21 percent in exchange for more working-family tax breaks. The Senate passed the final version of its bill on a 51-to-49 vote just before 2 a.m. Saturday, with Sen. Bob Corker (Tenn.) as the lone Republican voting against it on concerns that it would drive up the federal deficit.
(Excerpt) Read more at washingtonpost.com ...
Keeping the corporate rate at 20% costs Americans their refundable child tax credits. Raising the corporate rate to 22% enable American families to continue receiving refundable child tax credits and could increase them to $2000/per child as Senator Rubio fought to do.
It's simple. Millions of American families count on their child tax credits as income that helps them make ends meet. I know I do. Take it away and they're not going to be happy. It won't bode well for 2018. The democrats won't even need to lie in their campaign speeches.
Trump has nobody to negotiate with. Neither Ryan or McConnell cares what the President wants or thinks about the matter.
For Trumps part he has to stop making crazy promises. He was in Missouri on Wednesday and he said the tax bill would reduce peoples taxes on an average of $2000 and would result in increases in salaries of $4000. It will do neither, but come 2018 and 2020 you can be sure that the Democrats will be asking people whether their taxes went down and their salaries went up like the President promised.
If we are going to grow the economy, lowering the corporate tax rate is the most important objective! I think too many people are too focused on their own situation and thus aren't seeing the forest for the trees.
As Trump gains more power and congressional support over the next eight years, we will see additional tax cuts for individual tax payers - that I am sure of. But to prime the pump, we need to get those ridiculous corporate tax rates down as a first priority. So that companies will stop moving overseas and will expand here in stead. So that new businesses can be formed right here in the U.S. that will hire Americans.
You have to ask why corporations pay tax at all. They create jobs if untaxed. Why penalize the engines of the economy?
True.
But often the situation is such that it is better to take a domestic loan for expansion, and pay off the loan with foreign funds.
I may have missed as step or three, but that is what my last company did.
I agree completely. I voted for Trump for corporate tax cuts and repatriation of stranded corporate earnings. I want to watch the effect on the economy. I’ve waited all my life for this.
I stopped reading at “Washington Post”.
Is the repatriation rate a one time rate that then converts to the corporate rate?
“If we are going to grow the economy, lowering the corporate tax rate is the most important objective! I think too many people are too focused on their own situation and thus aren’t seeing the forest for the trees.”
Exactly! There is thread after thread with people unhappy with their own tax actuation. Not that they don’t have a reason to complain about that, but that is ALL they complain about.
Our founding fathers had a bigger and better perspective. They risles everything they had, including their lives.
I wouldn’t mind paying more in taxes if this bill actually grows the economy. I would make up in investments and opportunities what I might lose in a few tax dollars. (To be honest, I will be saving about $900-$1300 depending on the final bill. And that’s because I left Mexifornia and moved to a conservative state. This Bill lets the states and the way they tax their citizens stand on their own. No more help obfuscating it through the federal tax return.)
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