Taxes

House Republicans Reopen Corporate Tax Loopholes

JM Ashby
Written by JM Ashby

While the Congressional Budget Office (CBO) has already scored the House Republican tax cut bill and found that it will increase deficits by $1.7 billion, House Republicans have reportedly ditched a revenue proposal that will further increase the price of the bill.

From Politico:

They’ve scaled back the proposal — which is opposed by the influential Koch brothers, as well as scores of large corporations — so much that the provision is now projected to raise $7 billion over the next decade, which is 95 percent less than the original plan. Some companies would likely pay nothing under the revised plan. [...]

The House Republicans’ change in the corporate tax avoidance provision is a big reason why their tax plan now doesn’t fit within their budget, which allows them to cut taxes by $1.5 trillion. They’re now $146 billion over budget, according to Ed Lorenzen, a budget expert at the nonpartisan Committee for a Responsible Federal Budget.

After taking the CBO's score into account, this would mean they're $346 billion over budget.

House Republicans have said they would introduce new rules to prevent wealthy individuals from declaring themselves businesses to obtain a lower tax rate just as some individuals did in Kansas, but I think we can assume that's off the table now. And if that's the case, the cost of their bill will likely be far higher than the CBO estimates.

It's a matter of priorities for the GOP. They've shown no signs they're willing to preserve more deductions that middle class families use, but they're already abandoning modest tax hikes opposed by corporations before they even hold their first vote.

  • ninjaf

    They only give lip service to wanting to cut taxes for the middle class because those are the suckers who vote for them. They really want to give tax cuts to the rich and corporations because a.) that’s who pays for the campaigns and b.) because they really have an Ayn Randian view of the world. People who are not rich do not deserve tax breaks because they are a drain on the system and have not earned their own keep.

  • muselet

    No problem. Paul Ryan will just have to open a new drum of magic asterisks. Since he buys them by the pallet, I’m sure he has some to spare.

    –alopecia