House Republicans unveiled a tax plan Thursday, a bill the GOP has touted as the most far-reaching overhaul of the U.S. tax code in more than 31 years. House Republican leaders have also promised the plan would make sweeping changes in corporate and individual taxes, including deep tax cuts, limits to the mortgage interest deduction and bigger family tax credits.
The unveiling of the GOP tax overhaul plan was initially earmarked for Wednesday, but pushed back as Republicans put the finishing touches on an exceedingly complex piece of legislation.
The plan’s introduction marks the start of an ambitious legislative timetable: President Trump said Tuesday he wants the House to pass its bill by Thanksgiving and that he wants the legislation on his desk by Christmas.
“There’s never been anything like this in the history of our country,” Trump promised. “Its cuts and its relief and it’s also reform.”
The president’s deadline is contingent upon how lawmakers, industry lobbyists, and the public receive the details of a plan hashed out in secret, many of which will involve politically difficult tradeoffs designed to keep the cost of the GOP plan under $1.5 trillion.
If GOP tax plan results in 401(k) changes, will Americans save less? A few Republicans could derail the fragile tax reform effort over one key provision Republicans are unveiling their tax plan Thursday. Photo Credit: Omaha World Herald
What Republicans have publicized about their proposal to this point have been the benefits: a cut in the corporate tax rate to 20 percent from its current 35 percent, collapsing seven income tax brackets for individuals to three or four, doubling the standard deduction, and expanding the child-tax credit.
The sweeping tax overhaul plan includes provisions that are likely to stoke controversy and fierce lobbying, including limiting the deduction of mortgage interest for newly purchased homes up to $500,000, according to a summary.
This is not the first rodeo for the GOP when it comes to their desire to cut taxes—which according to House Speaker Paul Ryan (R- WI)—has not happened since 1986. The GOP tax overhaul is top priority moving into the 2018 elections—hence lawmakers are clinging onto the hopes of a victory after the Obamacare repeal failure.
Despite the president’s bravado—the big reveal on Thursday—packaged in fine print—is not written in stone. Republicans on Capitol Hill recognize the steepest climb remains ahead of them.
“Make no mistake, all hell’s going to break loose when that House bill becomes public,” Senator John Kennedy of Louisiana told CNN. “It’s taking a big ole piece of cheesecake and putting a bunch of spinach on top and saying, ‘You can’t eat the cheesecake ’til you eat the spinach.”
Kevin Brady says many aspects of the tax code are in play, days after President Trump tweeted that the retirement savings program would be unchanged. Photo Credit: Wall Street Journal
The House bill will have to survive a markup in the Ways and Means Committee next week, and Senate Republicans are working on their own proposal, though it’s expected to be broadly similar. Thursday’s announcement, however, will provide answers to several important questions that have vexed Republican legislators for months.
Who Will Pay More?
The president’s apparent preference for a clean tax cut faces hurdles because the House Republican proposal will be a broader and more complicated shift in who owes what to the government.
As GOP leaders have reluctantly acknowledged, some people will likely see their taxes go up. “Yes, some Americans probably will” pay more, House Majority Leader Kevin McCarthy conceded on Fox News. “Because you know what we do? We close the loopholes.”
The 429-page “Tax Cuts and Jobs Act” includes a broad set of proposed changes to the corporate and individual tax system, building off a nine-page framework the White House and congressional Republican leaders dropped in September.
House Ways and Means Committee Chair Kevin Brady, the author of the tax bill, has said the House should pass the plan by Thanksgiving.
House Speaker Paul Ryan, Brady and other House Republican leaders touted the bill in a press conference Thursday with promises the plan would save the “average” family of four [$1,182] annually on their taxes.
Despite the GOP promises to everyday Americans, various income groups would likely benefit in different ways from the plan. The plan remains ambiguous for many—on how the gains would be distributed among different income groups and localities.
Read more about the proposed GOP tax plan in the “Business Insider”
By LeNora Millen 11-02-17
You might also like
More from Lifestyle
A peek back to Jesse's previous celebrity events and artwork showcase. Look out for his work here on Exposure Magazine.A …