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Politics As Republicans iron out their tax bill, expect a sweeter deal for corporations

18:52  07 december  2017
18:52  07 december  2017 Source:   vox.com

Two Republican senators threaten to vote against GOP tax bill

  Two Republican senators threaten to vote against GOP tax bill Two Republican senators, Sens. Ron Johnson (R-Wis.) and Bob Corker (R-Tenn.), are threatening to vote against the GOP tax reform bill in the Senate Budget Committee on Tuesday unless changes are made to address their concerns. The lawmakers' primary issues with legislation are different: Corker has concerns about the possible deficit increase if the measure is passed, while Johnson worries the bill does not do enough to help small businesses.

Congressional Republicans have some ironing out to do. In the final step for the GOP tax bill , lawmakers from the House and Senate will come together in a version of a conference committee to smooth out the differences between There are expectations of a sweeter deal for corporations .

A massive corporate tax cut is the Republican tax overhaul’s entire reason for being. It is the star around which the rest of the plan orbits. As Republicans iron out their tax bill , expect a sweeter deal for corporations .

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Nearly half of Americans oppose Republican tax bill -Reuters/Ipsos poll

  Nearly half of Americans oppose Republican tax bill -Reuters/Ipsos poll Opposition has grown among Americans to a Republican tax plan before the U.S. Congress, with 49 percent of people who were aware of the measure saying they opposed it, up from 41 percent in October, according to a Reuters/Ipsos poll released on Wednesday. Congressional Republicans are trying to rush their tax legislation to a vote on the Senate floor before the end of the week. President Donald Trump strongly backs the bill and wants to sign it into law before the end of the year.

As Republicans iron out their tax bill , expect a sweeter deal for corporations . By signing up, you agree to our Privacy Policy and European users agree to the data transfer policy. For more newsletters, check out our newsletters page.

Under the final tax bill , the corporate tax rate would fall to 21 percent, from the current 35 percent, a move that Republicans are betting will increase In recent days, critics of the tax bill have argued that it will enrich a number of Republican lawmakers who supported it. They pointed specifically to

In the final step for the GOP tax bill, lawmakers from the House and Senate will come together in a version of a conference committee to smooth out the differences between their respective tax bills in order to get something on the president’s desk by the end of the year. 

At its core, the unified Republican vision for the tax bill is a proposal that gives corporations a massive tax break, and caps and ends various individual deductions in exchange.

But there are still major differences in the tax proposals passed by the House and Senate. As Dylan Scott and I explained, Republicans still don’t agree on how permanent this tax overhaul would be. The House bill makes its changes to the individual tax code permanent, but the Senate bill would allow many major provisions to expire after 2025 in order to comply with a Senate rule that limits how much this bill can increase the federal deficit.

60 percent of households would see tax cut under Senate GOP tax bill: JCT

  60 percent of households would see tax cut under Senate GOP tax bill: JCT More than 60 percent of households would see a tax cut of at least $100 in 2019 under the Senate GOP tax bill, but that percentage would drop in subsequent years, according to an analysis from the Joint Committee on Taxation (JCT) obtained by The Hill. According to the analysis, about 38 percent of households would either see a tax change of less than $100 in 2019 or a tax increase. Most of the people in that group, 30 percent, would see a tax change of less than $100. Sixty-two percent of tax returns would show a decrease in taxes of at least $100.

WASHINGTON — Republican lawmakers, scrambling to reach agreement on a final tax bill that they hope to pass next week, are coalescing around a plan that would slightly raise the proposed corporate tax rate, lower the top rate on the richest Americans and scale back the existing mortgage interest

The Senate GOP tax bill keeps the corporate alternative minimum tax , which Republicans have some patches to make on their tax plan to avoid killing a key corporate benefit. Given the blowback, Republicans are expected to address the issue during a conference committee in which members of the House and Senate tax -writing committees iron out the differences in the two versions of the TCJA.

The Senate bill also repeals the Affordable Care Act’s individual mandate, which the House does not, and addresses taxes for pass-through businesses, like LLCs and partnerships, differently. Plus, in a last-minute deficit management push, the Senate bill decided to keep a corporate tax that has industries fuming, and will likely be reconciled in this process.

On top of all this, many House Republicans from Democrat-led states took difficult votes approving the House’s tax bill after being given assurances that the proposal would become better for them in the Senate and after. But the House and Senate bills actually match on the provisions that would most impact these lawmakers. Conversations with lobbyists close to the debate indicate that blue-state Republicans’ concerns are not the highest priority for top Republican negotiators, but they do hold enough votes to stall the tax bill.

GOP will sell out middle class for a win on tax ‘reform’

  GOP will sell out middle class for a win on tax ‘reform’ When it comes to taxes, GOP really stands for Grand Old Plutocracy. Mark Plotkin is a contributor to the BBC on American politics and a columnist for The Georgetowner. He previously worked as the political analyst for WAMU-FM, Washington's NPR affiliate, and for WTOP-FM, Washington's all-news radio station. He is a winner of the Edward R. Murrow Award for excellence in writing.

Congress approved a sweeping .5 trillion tax bill on Wednesday that slashes rates for corporations , provides new breaks for private businesses and The bill , the product of negotiations between Republicans in the House and Senate, achieves longtime Republican goals, including a permanent

The Republican tax bill lands like a hammer on upper-income professionals in blue states. Yet my expectation of blue-state GOP dissent was wrong. The Republican caucus cohered. Under the new incentives, there will instantly appear many millions more. To deal with the ensuing revenue loss Politically, it accelerates the exodus of college-educated professionals out of the Republican Party.

What a handful of Republicans — known as the conference committee — decide in the next few weeks will likely become the nation’s tax law. The question is whose interests will be put first.

This is the final step to passing the GOP tax bill

Despite months of negotiations between top House and Senate members and members of Trump’s administration — a working group dubbed the “Big Six” — Republicans in the House and Senate came out with two drastically different bills.

So now begins a formal process, a conference committee,in which each chamber nominates members to be its negotiators to put together a hybrid of the two tax bills.

Usually these are bipartisan groups with members from both chambers, which comes with some rules: They’re not supposed to “change a provision on which both houses agree, nor may they add anything that is not in one version or the other,” according to the Congressional Research Service. But this complicating factor often gets overlooked, and there’s already a strong indication that Republicans are open to dropping in completely new provisions.

Highlights of Senate, House GOP bills to overhaul tax code

  Highlights of Senate, House GOP bills to overhaul tax code The Senate and the House seek to achieve a sweeping overhaul of the nation's tax code but go about it in different ways. With the Senate bill passed Saturday and the House bill passed two weeks ago, congressional Republicans now will work quickly on a compromise measure to send to President Donald Trump by Christmas.A comparison of the Senate and House bills, each coming in at nearly $1.5 trillion:— Personal income tax rates: Senate bill retains the current number of brackets, seven, but changes them to 10, 12, 22, 24, 32, 35 and 38.5 percent. Under current law, the top bracket for wealthiest earners is 39.

Congressional Republicans rushed toward a deal on a tax package that would reduce the top tax rate for Among the other tax breaks, negotiators agreed to eliminate the alternative minimum tax for However, taxpayers won’t file their 2018 tax returns until the following year. Both the House and House Majority Leader Kevin McCarthy, R-Calif., has come out in favor of repealing the corporate

While Republican lawmakers work to get their tax bill across the finish line, they will also Mr. Trump is expected on Thursday to meet with congressional leaders from both parties. An earlier meeting was roiled after Mr. Trump posted on Twitter that he would not cut a deal with Democrats, whose Once a deal is reached, lawmakers can work out the details of a long-term spending package.

House Speaker Paul Ryan has nominated Republican members to this committee: Reps. Kevin Brady (TX), who chairs the tax-writing Ways and Means Committee, committee members Devin Nunes (CA), Peter Roskam (IL), Diane Black (TN), Kristi Noem (SD), Rob Bishop (UT), who chairs the Natural Resources Committee, Don Young (AK), Greg Walden (OR), who chairs the Energy and Commerce Committee, and John Shimkus (IL). These are members who either helped write the House tax bill or are lawmakers with an interest in the tax bill’s Arctic drilling provision and health care cut.

Senate Majority Leader Mitch McConnell’s nominees fit a similar mold: Sens. Orrin Hatch (UT), the Senate Finance Committee Chair, Senate Budget Committee Chair Mike Enzi (WY), Senate Energy, Natural Resources Committee Chair Lisa Murkowski (AK), Majority Whip John Cornyn (Texas), John Thune (SD), and tax bill-writers Rob Portman (OH), Tim Scott (SC) and Pat Toomey (PA).

House Minority Leader Nancy Pelosi has also nominated her members — Reps. Richard Neal (MA), Sander Levin (MI), Lloyd Doggett (TX), Raúl Grijalva (AZ), and Kathy Castor (FL), who will have a seat at the table but do not represent a big enough contingent to influence the actual bill.

The final product is called a conference report, which is passed by the majority of the members in the conference committee and then sent to the full House and Senate floors. Both the House and the Senate have to pass the conference report outright for it to be sent to the president’s desk.

Senate Republicans made a last-minute change to their tax bill that could cause significant problems for companies

  Senate Republicans made a last-minute change to their tax bill that could cause significant problems for companies Republicans have some patches to make on their tax plan to avoid killing a key corporate benefit.

As Republicans sprinted to get their bill across the finish line, they Those tweaks, which include eliminating the corporate alternative minimum tax and dropping the But on Thursday, Republicans were running out of time to make changes and showed little A version of this article appears in print on , on Page A1 of the New York edition with the headline: Tax Deal Faces Fresh Concerns On Its

WASHINGTON — The Republican tax bill hurtling through Congress is increasingly tilting the United States tax code to benefit wealthy Americans, as On Monday, as Republican lawmakers returned to Washington determined to quickly pass their tax overhaul, senators were in feverish talks to resolve

There are expectations of a sweeter deal for corporations

In the final hours of the Senate’s tax bill negotiations, a tax on corporations, which Republicans had previously been adamant about repealing, was put back into the bill to make the deficit math work.

Under Senate rules, Republicans cannot pass a bill that increases the federal deficit by more than $1.5 trillion over 10 years, and at all past that budget window. Initial last-minute estimates from the Joint Committee on Taxation, which calculates the impact of the bill, said keeping the corporate alternative minimum tax would bring in $40 billion in revenue, which Republicans used to pay for cuts elsewhere. But since, there have been reports that the corporate AMT is actually a much bigger revenue source.

The last-minute change to keep the corporate AMT irked major industries and sparked a major lobbying blowback from the business community, as the Wall Street Journal reported. Lobbyists are now under the impression that lawmakers will work to remove the corporate AMT to appease business interests. But it’s a change that will cost them money in a bill that has almost no wiggle room.

An idea floated in the final hours of the Senate’s negotiations to address deficit concerns was to cut the corporate tax rate by slightly less. Right now both the House and Senate tax bills give corporations a massive tax break, from 35 percent to 20 percent.

2 questions loom over House-Senate talks on GOP tax bill

  2 questions loom over House-Senate talks on GOP tax bill Two looming questions threaten to snag the seemingly smooth trajectory of the Republicans' massive tax legislation now in its final leg in Congress. How to satisfy demands of the rebellious GOP lawmakers from high-tax states who demand concessions over a cherished deduction? And how to pay for those concessions?Even President Donald Trump has dropped his stubborn resistance to a smaller cut in the corporate tax rate as Republican leaders consider it as a way to pay for the House GOP rebels' demands.About two dozen House and Senate lawmakers are in talks to iron out differences between the two bills.

“Derp a derp derp derp derp.”. Alex Wong/Getty Images. It appears that Senate Republicans managed to make a 9 billion or so mistake while furiously hand-scribbling edits onto the tax bill they passed in the wee hours of Saturday morning.

The final bill permanently reduces the corporate tax rate all the way from 35 percent to 21 percent But they did end up notching a win they didn’t expect : By eliminating the Affordable Care Act’s Corporate tax rate. Trump wanted 15 percent, which was immediately deemed too ambitious even Individual tax rates. This was one area where Trump, Ryan, and House Republicans lost out on

Despite opposing any changes to the 20 percent corporate rate throughout this process, President Trump has said he would be open to a slightly less dramatic, if still substantial, corporate tax cut after the Senate tax bill. But there’s been a lot of reluctance to change that 20 percent number across the board. It’s a red line for House conservatives, and Senate Majority Leader Mitch McConnell told reporters Tuesday that he didn’t think it would be a prudent move.

The GOP is also expected to revisit the international tax provisions in the legislation, to prevent companies from shifting money overseas and avoiding US taxes, and the limits on how much interest businesses can deduct from their taxes.

Blue-state Republicans want a better deal. It’s not clear they’ll get one.

When House Republicans passed their massive tax overhaul last Thursday afternoon, 13 Republicans broke ranks: Five New Yorkers, four New Jerseyans, three Californians, and one deficit hawk North Carolinian voted against the plan.

The defections stemmed from a provision that would repeal the state and local tax deduction — something that that overwhelmingly disadvantages high-tax states like California, New York, and New Jersey, which are paying for dramatic cuts to corporate tax rates. The House’s bill caps the mortgage interest deduction for homes costing more than $500,000 and repeals and caps state and local income and property tax deduction, respectively, which many people in blue states rely on. The Senate’s bill keeps the mortgage interest deduction for homes up to $1 million but has the same SALT provisions as the House bill, repealing the income tax deduction and capping the property deduction at $10,000.

This has already angered blue-state Republicans in the House, whose constituents live with high local and state taxes and rely on those deductions. For example, 46 percent of Rep. Mimi Walters’s (R-CA) district takes the state and local tax deduction, according the Tax Policy Center.

The majority of the California Republican delegation, including Walters, voted for the tax bill with the hope that the Senate would fix their problems.

“It’s not the final outcome on it. We still have a ways to go,” Rep. Doug LaMalfa (R-CA) told the LA Times at the time. “The all-important final vote on the conference bill will be where the rubber meets the road.”

But the Senate didn’t make things much better for Californians. Now there are talks of bringing back the income deduction — which impacts Californians more than other blue states because of the state’s relatively lower property taxes and high income taxes. Again, this will cost a lot of money, as partially repealing SALT was a major way Republicans paid for their tax plan.

And because the House and Senate are largely in consensus over SALT, it’s unlikely Republican leaders want to seriously open up those provisions for negotiations again. But if all the New York, New Jersey, and California Republicans band together, there would be enough of them to stall the bill over these policy areas.

Republicans in the House can only afford to lose about two dozen votes, and blue-state Republicans roughly make up a big enough contingent. But as we’ve seen before, the political pressures of voting for this tax bill appear to be much stronger than with past legislation.

Dylan Scott contributed reporting to this piece.

How Sen. Marco Rubio’s child tax credit could be the final big GOP tax fight .
Any last-minute tax bill drama will likely come from these senators.The proposal gives corporations and pass-through businesses, like LLCs and partnerships, a massive tax break, makes changes to the individual rates that largely benefit America’s wealthiest, and repeals the Affordable Care Act’s individual mandate, which taxed people for not buying health insurance.

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