House Advances Budget Resolution, in First Step Toward Major Tax Bill
- Author: Leroy Wright Oct 06, 2017,
Oct 06, 2017, 16:47
No surprise then that a number of Republicans have already said that they'll vote against tax reform unless it keeps the deduction. And a vote against the budget resolution is a vote against tax reform.
But some members of the administration think it could be a good thing for Congressional donors to hold GOP lawmakers hostage, as it might produce new Republican leadership. A Republican aide denied the existence of Medicare cuts in the budget, saying that instead Medicare would grow at a slower rate. In as much as the plan contains any details on how it would pay for the tax cuts it envisions, the proposal stipulates that it would preserve two of the most expensive and wealth-favoring tax breaks: the deductions for home mortgage interest and for charitable giving. Of course, this is one more example of Donald Trump sticking it to his enemies who may have voted for Hillary Clinton in the presidential election.
"And these businesses in Wisconsin are competing in a global economy ... so we're taxing these businesses in our economy at double the rates" of other industrial countries, Ryan said. Black's proposal includes language to ensure the budget reconciliation process would be followed which limits the potential threat of a filibuster from Senate Democrats.
Now a broad 4 in 5 in both parties see the opposing party unfavorably, highlighting even greater animosity between America's two major political parties.
In a procedural step forward, the Republican-controlled House of Representatives approved by a 219-206 vote a fiscal 2018 spending blueprint to help advance an eventual tax bill. Republicans have a slim 52-48 majority in the Senate, meaning they could pass a tax bill without the help of any Democrats. This could end up being a serious issue for any eventual tax bill. Republicans used the same so-called reconciliation procedure in their failed attempt to kill "Obamacare", including its tax surcharges on wealthy people.
The proposal cuts the top rate for the wealthy, lowers business taxes and consolidates seven brackets into three.
The bottom line is that the current framework doesn't retain these deductions, but whether they'll be included or excluded in a final tax reform bill remains to be seen at this point.
"The fact is all that's being talked about right now is rates", Corker said Wednesday. In Maryland, 30 percent of households-including many middle-class families-would pay higher taxes under Trump's plan. House GOP members have no intention of imposing the cuts, according to the Associated Press.
Democrats warned that the Republican tax bill alone could set the stage for future cuts to popular federal programs.
"Eighty percent of it would benefit the top one percent in our country", said House Democratic Leader Nancy Pelosi, who drew some jeers from GOP lawmakers in a speech on the floor of the House, as she jabbed at the Republican budget details.
If all of the miscellaneous deductions are eliminated by the GOP tax plan, it would take this deduction away from almost 12.8 million Americans and would add almost $8,900, on average, to the taxable income of people who now claim it. It should be very clear that this action is necessary, but by no means sufficient, to getting the tax cut Republicans and their constituency groups and donors want.
"The budget would make it harder for children to get a decent education, harder for families to get the health care they desperately need, harder for families to put food on the table, harder to protect our environment and harder for the elderly to live their retirement years in dignity", the authors of the report write.