Tag: Reaganomics

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”

GOP, with tax bill finalized, makes its case to a skeptical public

The following article by Jeff stein and Mike DeBonis was posted on the Washington Post website December 17, 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)

Republicans, confident they’ve found the votes to pass a massive tax overhaul, entered the next phase of their effort Sunday, attempting to sell the plan to a public that polling suggests is deeply skeptical.

GOP leaders argued that the tax bill — the final version of which was unveiled Friday — is aimed primarily at helping the middle class, brushing aside nonpartisan analyses that show the bulk of the legislation’s benefits would go to the wealthy and to corporations. Continue reading “GOP, with tax bill finalized, makes its case to a skeptical public”

Why Republicans shouldn’t be so optimistic their tax bill will be a big win

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

Rep. Cathy McMorris Rodgers (R-Wash.) hit out at criticisms of the GOP’s tax proposal on Dec. 12. (Reuters)

Republicans are on the verge of passing a massive tax cut for businesses that is deeply unpopular with the American public. They are doing it with no Democratic votes and at a moment when the U.S. economy looks pretty healthy (typically, tax cuts are most effective when the economy is struggling and the government wants to revive it). A surprising number of chief executives admit their top plan for the extra cash is to pay shareholders more, not grow jobs and wages. Billionaire chief executive Michael Bloomberg went so far as to declare the bill a “trillion-dollar blunder.”

So all of this raises the obvious question: Why are Republicans doing this? Continue reading “Why Republicans shouldn’t be so optimistic their tax bill will be a big win”

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”

The final GOP tax bill is complete. Here’s what is in it.

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

After threatening to vote “no” on the GOP tax bill, Sen. Marco Rubio (R-Fla.) and Sen. Bob Corker (R-Tenn.) pledged their support when the bill was finalized. (Video: Jenny Starrs/Photo: Melina Mara/The Washington Post)

Republicans were joyful Friday as they finalized their tax plan, bridging differences between the House and Senate bills and moving another step closer to getting legislation to President Trump by Christmas.

They also appear to have locked down the votes they need to pass the measure through the House and Senate after Sens. Marco Rubio (R-Fla.) and Bob Corker (R-Tenn.) pledged their support. Continue reading “The final GOP tax bill is complete. Here’s what is in it.”

GOP Tax Bill Signed, Nearly Sealed and Delivered

The following article by Ryan McCrimmon was posted on the Roll Call website December 15, 2017:

Senate Finance Chairman Sen. Orrin G. Hatch, R-Utah, left, and House Ways and Means Chairman Rep. Kevin Brady, R-Texas, conduct the Senate-House Conference Committee meeting on the GOP tax bill. (Tom Williams/CQ Roll Call)

Republican tax writers signed off Friday on a compromise plan to overhaul the tax code, bringing House and Senate negotiations to a close and setting up final votes on the legislation early next week.

The tax conference agreement was set to be released Friday at 5:30 p.m. Some key details are already known, like a proposed corporate tax rate of 21 percent; a top individual rate of 37 percent; and a 20 percent deduction for “pass-through” business income.

Sen. Rob Portman, R-Ohio, said the proposed tax changes for individuals will expire after 2025, as in the Senate-passed version. Continue reading “GOP Tax Bill Signed, Nearly Sealed and Delivered”