Analysis: Five Ways Trump Dimmed the Tax Bill Glow

The following article by John T. Bennett was posted on the Roll Call website January 5, 2018:

Chaos returns to White House, overshadowing legislative agenda

President Trump walks along the White House’s West Colonnade of the White House on Wednesday evening. (White House photo via Flickr)

President Donald Trump was excited, beaming behind the storied Resolute Desk three days before Christmas. He joked with reporters and offered camera operators presidential ink pens. And he boasted that, after a year with more downs than ups, he was starting to figure out how to be president.

“So, you know, it’s been a process,” he said after securing his first major legislative win by signing a GOP tax bill into law — and terminating the Obama-era health law’s individual mandate at the same time. “It’s been a great process. Really beautiful.” In the days that followed, he assured members of his Mar-a-Lago club in South Florida his administration was about to have a “great” second year.

Trump and his team were riding high. The president continued to be in high spirits on Christmas Eve, boasting about his first-year achievements and predicting more in 2018. He even tracked Santa Claus with NORAD and called children, a symbolic victory lap in his self-proclaimed win in the so-called “War on Christmas.” Continue reading “Analysis: Five Ways Trump Dimmed the Tax Bill Glow”

How closely did the tax bill resemble Trump’s campaign promises?

The following article by Louis Jacobson was posted on the Politifact website January 2, 2018:

President Donald Trump discusses Congress’ final approval of the tax bill. (Carolyn Kaster / Associated Press)

The tax bill that President Donald Trump signed into law on Dec. 22, 2017, was a large and consequential piece of legislation. It was also the culmination of no fewer than nine of Trump’s campaign promises. So how did he do?

Upon review of the bill’s provisions, we found only one pure Promise Kept in the bill, compared to four we rated Promise Broken. But he made significant, if imperfect, progress on four other promises, and we’ve rated these Compromise. Continue reading “How closely did the tax bill resemble Trump’s campaign promises?”

Companies Are Handing Out Bonuses Thanks to the Tax Law. Is It a Publicity Stunt?

The following article by Landon Thomas, Jr. was posted on the New York Times website January 3, 2018:

AT&T was among the first companies to announce it would use some of its tax savings for employee bonuses.CreditBrandon Thibodeaux for The New York Times

The big corporate tax break that became law last month is great news for companies and their investors. But what about employees? How much of the corporate tax windfall will go to workers via higher wages?

Since President Trump signed the $1.5 trillion tax cut into law on Dec. 22, nearly 20 large companies have announced some form of bonus or wage hike for their employees. Will they make a difference? Or are they merely publicity stunts?

“This is not a P.R. stunt,” said Teresa Tanner, who oversees marketing and human resources at Fifth Third Bank, a regional lender in the Midwest that is raising its minimum wage and giving some employees a $1,000 bonus. “The tax cut will be an ongoing benefit for us and we wanted to share this with our employees. It is the right thing to do.” Continue reading “Companies Are Handing Out Bonuses Thanks to the Tax Law. Is It a Publicity Stunt?”

Republicans passed their tax bill. Now they’re spending $10 million to promote it.

The following article by Mike DeBonis was posted on the Washington Post website January 3, 2018:

A nonprofit group with ties to Republican congressional leaders is broadcasting TV ads to promote the GOP tax bill and those who voted for it. (American Action Network)

Two weeks ago, Republicans passed their massive rewrite of the federal tax code. Now a GOP group is spending millions to convince voters they will benefit from it.

The American Action Network, a nonprofit group with close ties to Republican congressional leaders, is launching a $2 million round of TV ads promoting the tax bill Wednesday, the first salvo in a $10 million campaign to give key House Republicans a boost going into November’s midterm elections.

The ads, running in 23 districts, feature a couple sitting on their couch extolling the benefits of the bill — “will save a typical family more than $2,000”; “helps create jobs and boost middle-class income” — and thanking the local lawmakers for their votes.

So far, the public is not sold. Several public polls released last month, including surveys from CNN and the Wall Street Journal/NBC News show that pluralities of Americans oppose the GOP tax bill, citing its benefits for corporations and the wealthy. Many Americans, the polls show, believe they will see a tax hike under the bill — not a tax cut.

The centerpiece of the $1.5 trillion bill is a dramatic cut in the corporate tax rate from 35 percent to 21 percent. Many business owners, meanwhile, will be entitled to a new 20 percent deduction on their business income, and wealthy Americans will see more of their assets sheltered from the federal estate tax. Wage earners see comparatively scant benefits — a larger standard deduction and child tax credit, as well as modestly lower income-tax rates, all of which will expire after 2025.

Democrats have been eagerly pointing to the outsize benefits for corporations and top earners, but Republican leaders believe that the public will warm to the bill once they see the benefits. For instance, employers are expected to start withholding less income tax from employee paychecks starting in February. “If we can’t sell this to the American people we ought to go into another line of work,” Senate Majority Leader Mitch McConnell (R-Ky.) said after the Senate vote.

Republicans are forging ahead with their promise to overhaul the tax code, even with very little public support for their proposal. (Video: Jenny Starrs/Photo: Jabin Botsford/The Washington Post)

ut sell it they must, said Corry Bliss, who runs the American Action Network and its affiliated super PAC, the Congressional Leadership Fund. Amid major head winds for Republican candidates this year, his theory for doing so is simple: Lawmakers must make the case to voters that they have made a difference in everyday lives, and “grand economic theory” about boosting economic growth won’t get it done.

“It has to be connected to the individual,” he said Tuesday. “People care about themselves and their family, and they will reward people who are looking out for them and they will punish people who are not looking out for them.” Continue reading “Republicans passed their tax bill. Now they’re spending $10 million to promote it.”

New tax law expected to slow rise of home values, creating winners and losers

The following article by Kathy Orton and Aaron Greg was posted on the Washington Post website December 29, 2017:

Credit: kconnors via morguefile.com

The steady increase in housing prices in many of the nation’s priciest markets, including the Washington region, is expected to slow in coming years, analysts say, as the Republican tax law begins to reshape a major part of the U.S. economy.

For generations, the tax code has subsidized homeownership, particularly for people in the ­upper middle class and beyond. The Republican tax legislation, however, pushed in the opposite direction, scaling back subsidies once thought untouchable. Continue reading “New tax law expected to slow rise of home values, creating winners and losers”

Trump Tells Rich Mar-a-Lago Friends “You All Just Got a Lot Richer” After Tax Bill

The following article by Grace Guarnieri was posted on the Newsweek website December 24, 2017:

Credit: Don Emmert, AFP/Getty Images

President Donald Trump joined his family at their “Winter White House” for the holidays Friday night after signing the GOP tax bill into law, and reportedly told wealthy friends dining at Mar-a-Lago, “You all just got a lot richer.”

Days before heading away for the holidays, Trump told White House reporters that the tax bill would be “one of the great Christmas gifts to middle-income people.” However, Mar-a-Lago’s exclusive dinner guests would have paid a $200,000 initiation fee and $14,000 in annual dues to Trump’s golf club and resort. Continue reading “Trump Tells Rich Mar-a-Lago Friends “You All Just Got a Lot Richer” After Tax Bill”

What to look for from the Republican tax bill, month by month

The following article by Philip Bump was posted on the Washington Post website December 22, 2017:

President Trump delivers remarks after signing sweeping tax overhaul legislation into law on Friday in the Oval Office. (Jonathan Ernst/Reuters)

On Friday morning, President Trump signed into law the sprawling tax bill that was hastily built out by Republican leaders over the past month. In doing so, he formalized a huge range of changes to how Americans — and American businesses — will pay their taxes.

Given that U.S. tax law was not particularly user-friendly even before the Republican rehaul, we reached out to Manhattan-based tax attorneys Steven and Benjamin Goldburd to explain how the law will affect Americans over the course of the year. Or, really, the next decade. Continue reading “What to look for from the Republican tax bill, month by month”

Trump Promised to Kill Carried Interest. Lobbyists Kept it Alive.

The following article by Alan Rappeport was posted on the New York Times website December 22, 2017:

From right, Gary D. Cohn, director of National Economic Council, and Treasury Secretary Steven Mnuchin with lawmakers in November to discuss tax legislation. Credit Tom Brenner/The New York Times

WASHINGTON — President Trump’s signature on the Republican tax bill marks his most important legislative achievement to date. It also represents the breaking of a signature promise that helped propel his populist presidential campaign.

This week, as senior White House officials acclaimed passage of the tax overhaul in Congress, they also expressed one regret: failing to close the so-called carried interest “loophole” that benefits wealthy hedge fund managers and private equity executives. Despite Mr. Trump’s vows to eliminate a tax rule that allows some rich business leaders to pay lower tax rates than their secretaries, the president in this case was no match for the powerful lobbyists protecting the status quo. Continue reading “Trump Promised to Kill Carried Interest. Lobbyists Kept it Alive.”

Ivanka Trump wrong that in April, ‘vast majority’ will be filing their taxes on a ‘postcard’

The following article by Louis Jacobson was posted on the PolitiFact website December 21, 2017:

During an interview on Fox & Friends in which she touted the recently passed tax bill, Ivanka Trump said voters would benefit more quickly than they might have imagined.

“I’m really looking forward to doing a lot of traveling in April when people realize the effect that this has, both on the process of filling out their taxes — the vast majority will be doing so on a single postcard — but also having experienced the relief that will be starting as early as February,” she said. Continue reading “Ivanka Trump wrong that in April, ‘vast majority’ will be filing their taxes on a ‘postcard’”