Tag: GOP wealthcare

Top economic adviser: Tax plan that mostly benefits millionaires is about ‘wage growth’

The following article by Philip Bump was posted on the Washington Post website November 9, 2017:

White House chief economic adviser Gary Cohn speaks during the daily news briefing at the White House on Sept 28. (Jabin Botsford/The Washington Post)

Gary Cohn left his position as president of Goldman Sachs shortly after President Trump’s inauguration to take a job with the White House. He now serves as director of the National Economic Council, meaning that he’s Trump’s top adviser on economic issues. As part of that job, he sat down with CNBC’s John Harwood to explain the administration’s goals for overhauling the country’s tax system.

It was an interesting explanation.

Cohn is well aware by now (after some initial confusion) that the anticipated benefits of the proposal are heavily stacked toward the richest Americans. The Tax Policy Center estimates that about a quarter of the benefits of the tax cuts would be seen by the bottom 80 percent of the American economy — and another quarter of the benefits would be seen by the top 0.1 percent. When Harwood noted this discrepancy, Cohn blithely replied, “I don’t believe that we’ve set out to create a tax cut for the wealthy. If someone’s getting a tax cut, I’m not upset that they’re getting a tax cut. I’m really not upset.” Continue reading “Top economic adviser: Tax plan that mostly benefits millionaires is about ‘wage growth’”

How the Tax Bill Affects Students and Families Paying for College

The following article by Tara Siegel Bernard and Guilbert Gates was posted on the New York Times website November 7, 2017:

The tax legislation that House Republicans proposed last week includes several changes that could affect student loans: the ability to deduct the interest on your loan would be eliminated; tuition paid by an employer would become taxable; and three existing tax breaks would be consolidated into one.

It’s hard to immediately tell how any one person would fare because of the wholesale change across the entire tax system. For example, while some part-time students would lose a popular tax break because they don’t take enough classes to qualify, other individuals may see their tax burden fall because of a significant increase in the standard deduction. Continue reading “How the Tax Bill Affects Students and Families Paying for College”

3,200 wealthy individuals wouldn’t pay estate tax next year under GOP plan

The following article by Heather Long was posted on the Washington Post website November 5, 2017:

House Republican leaders on Nov. 2 proposed legislation that would overhaul the U.S. tax code. Here’s what you need to know about it. (Monica Akhtar/The Washington Post)

More than 3,000 Americans would not have to pay the estate tax next year if the Republican tax bill is passed, a 64 percent reduction from the 5,000 people who would pay under current law, according to Congress’s Joint Committee on Taxation — one of the most glaring ways the proposed legislation benefits a small number of wealthy Americans.

Under current law, Americans can pass along homes, land, stocks or other assets worth up to $5.49 million without paying any estate or gift tax. Estates worth more than that are subject to a 40 percent tax. The House GOP bill would double the threshold to $11.2 million in 2018 and then do away with the tax entirely in 2024. For 2018, that means an estimated 3,200 people would not have to pay. Continue reading “3,200 wealthy individuals wouldn’t pay estate tax next year under GOP plan”

Tax bill raises red flags for Senate GOP

The following article by Alexander Bolton was posted on the Hill website November 5, 2017:

Credit: AP/Evan Vucci

The House GOP tax-reform package has put Senate Republicans in a tough spot, much like the House-passed ObamaCare repeal bill did earlier this year.

The legislation is expected to pass the House, starting a tougher battle in the Senate, where Republicans control 52 seats and can’t pass a bill if they suffer more than two defections and Democrats remain unified.

At least a half-dozen Senate Republicans have already raised concerns about various proposals in the tax measure, setting the stage for arduous negotiations in the upper chamber. Continue reading “Tax bill raises red flags for Senate GOP”

Major, Major’ Tax Cut May Not Be in Store for Middle Class

The following article by Jim Tankersley was posted on the New York Times website November 2, 2017:

The Republican tax plan would make it difficult for middle class people looking to buy starter houses in high-priced, economically vibrant areas such as Silicon Valley and New York. Credit Jim Wilson/The New York Times

WASHINGTON — The House Republican tax bill is a clear windfall for corporate America and a roll of the dice for the middle-class families that President Trump promised would be the centerpiece of his economic agenda.

Early projections suggest the bill would cut taxes for an average middle-class family. But the typical cut could be relatively modest, compared with the benefits for businesses and high earners. More important, the myriad changes in the code would actually raise taxes on nearly 13 million tax filers who earn $100,000 a year or less, according to preliminary calculations using the open-source economic modeling software TaxBrain.

Those changes also include limits on, or the elimination of, what might be called tax breaks for middle-class aspirers. The bill would no longer allow Americans to deduct interest on student loans they took out to attend college. It would limit mortgage interest deductions to $500,000 on newly purchased homes, a provision that would hit middle-class teachers or office workers looking to buy starter houses in high-priced, economically vibrant areas such as New York City and Silicon Valley.

One of the bill’s biggest lifts to working families would vanish after five years — though Republicans would certainly push to extend it — and another would be diluted by the bill’s changes to how the tax code calculates inflation. Continue reading “Major, Major’ Tax Cut May Not Be in Store for Middle Class”

GOP tax bill ends electric vehicle tax credit, overhauls other energy taxes

The following article by Devin Henry was posted on the Hill website November 2, 2017:

© Getty Images

A massive GOP tax-reform bill would end a $7,500 credit for the purchase of electric vehicles and overhaul other energy-related provisions within the tax code.

The 429-page bill would repeal the electric vehicle tax credit, which supporters have credited with reducing the price of emission-free cars for consumers and helping the burgeoning American electric vehicle industry grow.

Advocates have ramped up lobbying efforts to save the credit, which has benefited electric vehicle manufactures like Tesla. The credit is limited at the first 200,000 electric vehicles sold by each manufacturer, but no one has yet hit that cap. Continue reading “GOP tax bill ends electric vehicle tax credit, overhauls other energy taxes”

Ethics watchdog: GOP tax bill written to cut Trump’s taxes

The following article by Brett Samuels was posted on the Hill website November 2, 2017:

A government ethics watchdog argued Thursday morning that the newly released Republican tax bill was written to lower President Trump’s taxes.

Citizens for Responsibility and Ethics in Washington, a nonprofit that aims to reduce the influence of money in politics and foster government accountability, cited the bill’s intention to repeal the alternative minimum tax.

“In 2005, the one year of Trump’s taxes we’ve seen, the Alternative Minimum Tax cost him an extra $31 million,” the organization, which is linked to Democratic operative David Brock, tweeted. “This bill was written for him.” Continue reading “Ethics watchdog: GOP tax bill written to cut Trump’s taxes”

Russia investigation charges complicate Trump’s Asia trip, ability to sell tax cuts

The following article by John Wagner and David Nakamura was posted on the Washington Post website October 31, 2017:

President Trump speaks, with Treasury Secretary Steven Mnuchin by his side, during a meeting on tax policy with business leaders at the White House on Tuesday. (Jabin Botsford/The Washington Post)

The first criminal charges stemming from the Russia investigation landed this week at a perilous point in Donald Trump’s presidency, threatening his standing with foreign leaders ahead of an important trip to Asia on Friday and his effectiveness in selling the Republican tax plan set to be released this week.

Aides insisted the twin challenges at home and abroad would not be undermined by the indictments, but the frustration of the president — whose job approval ratings hit a new low this week in Gallup polling — was evident Tuesday. He started the day with a spate of tweets in which he lashed out at the media and “Crooked Dems” and urged a focus instead on the “Massive Tax Cuts” he has promised to deliver by Christmas.

In a bid to show he remains focused on the tasks at hand, Trump later in the day allowed reporters to witness the start of a White House meeting with business leaders at which he boasted that the December signing of the yet-to-be-unveiled GOP tax bill would be “the biggest tax event in the history of our country.” Continue reading “Russia investigation charges complicate Trump’s Asia trip, ability to sell tax cuts”

Governor Dayton Urges President, Republicans to Abandon Proposal that Would Eliminate Tax Deduction for 900,000 Minnesota Families

Tax proposal from President Trump, Congressional Republicans would eliminate tax deduction for one-third of Minnesota taxpayers, hurting residents in every county (as detailed below)

While 80 percent of the benefits would go to the top 1 percent, 900,000 Minnesota families would lose an average $12,000 tax deduction every year; totaling over $12 billion statewide

Credit: REUTERS/Eric Miller

ST. PAUL, MN – Today, Governor Mark Dayton called on President Donald Trump and Republican members of Congress to abandon their tax proposal which would eliminate on an average a $12,000 tax deduction for 900,000 primarily middle-class Minnesota families. These tax deductions provide hard-working Minnesota families about $12 billion in tax benefits every year.

The following is a statement from Governor Mark Dayton:

“The US Congress’ Republican Senators and Representatives and President Trump are striking another blow against our country’s future economic prosperity, by cutting taxes, especially for the rich, large corporations, and powerful special interests. Over half of their proposed tax cuts would go to the wealthiest 1 percent of Americans, whose annual incomes total more than $730,000 per year. Continue reading “Governor Dayton Urges President, Republicans to Abandon Proposal that Would Eliminate Tax Deduction for 900,000 Minnesota Families”

Podcast: The Obstacles Facing the GOP Tax Plan

The following post and podcast by David Lerman and Catalina Camia was posted on the Roll Call website October 30, 2017:

Capitol-Ink-10-30-17

Budget Tracker Extra, Episode 37

Republicans are quickly trying to pass a tax overhaul plan but indications are that obstacles are around every corner, say CQ Tax Editor Catalina Camia and Budget Editor Peter Cohn, who explain the complications facing the plan.

View the post here.