Tag: GOP corporate welfare

Trump risks losing what’s left of his populist street cred with GOP tax bill

The following article by James Hohmann with Breanne Deppisch and Joanie Greve was posted on the Washington Post website December 18, 2017:

Politicians continued to debate the merits of the Republican tax overhaul on Dec. 17. The House could vote on the bill as soon as Dec. 20. (Patrick Martin/The Washington Post)

THE BIG IDEA: The narrative of President Trump’s first year will shift this week when he signs into law the biggest overhaul of the tax code in three decades. The donor class is enthusiastic, and final passage should help reverse months of anemic fundraising at entities like the National Republican Senatorial Committee.

It is a much-needed win for Trump and the GOP, who would have looked ineffective if he couldn’t get this done, but it may still turn out to be a Pyrrhic victory. Here are several ways that this bill could backfire: Continue reading “Trump risks losing what’s left of his populist street cred with GOP tax bill”

GOP tax scam: How corporations and the rich are fueling inequality

The following commentary by Nell Abernathy and Steph Sterling was posted on the USA Today website December 18, 2017:

Political and economic power are now inseparable. We must dismantle not just this abysmal plan but also the structural conditions that wrought it.

The tax plan that Republican congressional leaders hope to pass this week and send to President Trump will soon be regarded as the zenith in a story nearly 40 years in the making, where corporations and a handful of America’s wealthiest families — some of whom now hold positions in the government directly — leverage their outsized economic power into political power. It is what happens when corporate and political power become inseparable. It is a call to arms to dismantle not just the plan itself, but the structural conditions that wrought it. Continue reading “GOP tax scam: How corporations and the rich are fueling inequality”

Tax plan could be dramatic in Minnesota

The following article by Jim Spencer, Maya Rao and MaryJo Webster was posted on the StarTribune website December 19, 2017:

Revamp has many in the state confused and on edge.

Julie Kolbow has spent hours building spreadsheets to figure out how the tax overhaul under debate in Washington would affect her family of five in Chanhassen.  She and her husband own small businesses and have two children in college, and she worries that the legislation could lower the amount of taxes they can deduct. Continue reading “Tax plan could be dramatic in Minnesota”

An update on winners and losers on the U.S. tax scorecard

The following article by Beth Pinsker was posted on the Reuters website December 16, 2017 and updated December 18, 2017:

A man walks the campus of the City College of New York in the Harlem borough of New York, U.S., December 16, 2017. REUTERS/Eduardo Munoz

NEW YORK (Reuters) – In the lead-up to the conference agreement for the U.S. Tax Cut & Jobs Act released on Friday, there were too many moving parts for most Americans to know how it would affect them.

Until the bill is voted into law, the various provisions are still a moving target, but taxpayers now have a better sense of the real math of what it means to them.

Here is an update on what some of the key issues would mean to your wallet: Continue reading “An update on winners and losers on the U.S. tax scorecard”

Will Passing The Tax Bill Help The GOP In 2018? Probably Not.

The following article by Harry Enten was posted on the FiveThirtyEight website December 18, 2017:

Protesters demonstrate near the full Senate budget committee markup of the tax reform legislation on Capital Hill November 28, 2017 in Washington, DC. Republicans in the Senate hope to pass their legislation this week and work with the House of Representatives to get a bill to President Donald Trump before Christmas. Credit:
Tasos Katopodis/Getty Images

President Trump’s first year has been marked by an almost complete lack of major policy wins.1 But that could come to an end this week. Congress is on the verge of passing a massive tax bill into law. It would be the first major legislative victory for Trump and the Republicans. And it would accomplish a long-held GOP goal: cutting the corporate tax rate.

But policy wins and political wins don’t always go hand in hand. Republicans who believe that failing to pass this tax bill will be a disaster for them in the 2018 midterm elections, like Trump and Sen. Lindsey Graham, are likely to be disappointed.

This tax bill remains historically unpopular. According to an average of nine surveys taken this month, 33 percent of Americans are in favor of it, and 52 percent are opposed. That -19 percentage point split between support and opposition makes it the least popular major tax bill since at least the Ronald Reagan tax cuts in 1981. Continue reading “Will Passing The Tax Bill Help The GOP In 2018? Probably Not.”

The Tax Bill’s Winners and Losers

The following article by Jesse Drucker and Alan Rappeport was posted on the New York Times website December 16, 2017:

President Trump, with his son-in-law, Jared Kushner, who is part owner of his own real estate firm, will both benefit from breaks for commercial real estate in the tax legislation. Credit Doug Mills/The New York Times

President Trump has called the $1.5 trillion tax cut that Republican lawmakers are on the verge of passing a Christmas present for the entire nation.

But the fine print reveals that some will get a much nicer gift than others, the benefits will change over time, and some will be left out in the cold. Real estate developers and technology companies could see big tax cuts, while low-income households and people buying health insurance could lose out.

With the bill finally headed to a vote this coming week, taxpayers are scrambling to determine whether the legislation renders them winners or losers. Continue reading “The Tax Bill’s Winners and Losers”

How the oldest Senate ever is taking a toll on the business of Washington

The following article by Paul Kane was posted on the Washington Post website December 16, 2017:

Sen. John McCain (R-Ariz.), 81, at the Capitol earlier this month. (Bill O’Leary/The Washington Post)

In November, Sen. Orrin G. Hatch, who is 83, was at the helm when the Senate’s massive tax bill came through the Finance Committee. But Hatch also deputized four younger Republicans on the panel to serve as de facto co-chairmen over various parts of the legislation.

This week, with a compromise bill marching toward final passage in both chambers, the House has to vote first — because a pair of senators, Thad Cochran (R-Miss.) and John McCain (R-Ariz.), are recuperating from, respectively, non-melanoma skin surgery and the side effects of cancer treatments.

Hatch’s advisers say his move demonstrates a keen sense of coalition building, and aides and friends to Cochran, 80, and McCain, 81, contend that their bosses should be back in the Senate before long. Continue reading “How the oldest Senate ever is taking a toll on the business of Washington”

Homeowners Have Had It Good. Too Good, Says the Tax Bill.

The following article by Conor Dougherty was posted on the New York Times website December 16, 2017:

Politicians from both parties have championed homeownership over the years, but economists see downsides in the tax preferences that have resulted. Credit Caitlin O’Hara/Bloomberg

For decades, the tax code has been filled with rewards for homeownership. Tax breaks encourage people to get into first homes and to trade up as they get older, building a national mind-set that you’re never quite middle class until you’ve qualified for a mortgage.

It amounts to a vast social engineering project that assumes society is better off with owners instead of renters. But the tax bill making its way toward final passage is upending that premise.

The bill will increase many homeowners’ monthly housing costs by scaling back deductions that allow them to reduce mortgage interest and property taxes. And by roughly doubling the standard deduction, it reduces the incentive to buy homes by making far fewer homeowners eligible for preferential tax treatment. Continue reading “Homeowners Have Had It Good. Too Good, Says the Tax Bill.”

Sen. Susan Collins takes huge leap of faith with tax bill. Critics say she’s getting played.

The following article by Erica Werner was posted on the Washington Post website December 15, 2017:

Sen. Susan Collins (R-Maine) extracted concessions on health-care in exchange for her support for the GOP tax bill. (Joshua Roberts/Reuters)

As GOP tax legislation nears final passage on Capitol Hill, Sen. Susan Collins is approaching the moment for a mighty leap of faith.

The Maine Republican extracted key concessions in exchange for her support for the bill, including commitments from the Trump administration and Senate leaders to back two pieces of legislation pumping money into the health-care system.

The problem is, House Republicans largely oppose the health-care bills. And while Collins anticipates that the commitments will be included in must-pass spending legislation to keep the government open, the tax package is scheduled for a final vote next week, before the spending measure. Continue reading “Sen. Susan Collins takes huge leap of faith with tax bill. Critics say she’s getting played.”

The essential tradeoff in the Republican tax bill, in one chart

The following article by Andrew Van Dam was posted on the Washington Post website December 16, 2017:

House Speaker Paul D. Ryan (R-Wis.) speaks at the introduction of House Republicans’ tax reform proposal on June 24, 2016. (Chip Somodevilla/Getty Images)

Republicans are paying for a permanent cut for corporations with an under-the-radar tax increase on individuals.

Senate rules require the Tax Cuts and Jobs Act not to add to the federal deficit after 10 years. Failing to meet that window would result in legislative defenestration, as it would require 60 votes in a Senate that has only 52 Republicans.

The bill aims to cut corporate taxes in perpetuity, under the theory that to do anything less would be to create uncertainty for corporations. But to do so and still have the bill not be a money loser after a decade, they need to raise extra funds somewhere. Continue reading “The essential tradeoff in the Republican tax bill, in one chart”