Taxes

Report: House Republicans Are Rewriting Their Tax Cut Bill

JM Ashby
Written by JM Ashby

While the overall framework of cutting taxes for the rich and corporations is expected to remain the same, House Republicans have begun revising their tax cut bill because they probably don't have enough votes to pass in its current form.

More specifically, House Republicans are reportedly reconsidering some of the pay-fors included in the bill.

One controversial component for lawmakers from high-tax states repeals a popular federal tax deduction for state and local income tax (SALT) payments, while preserving a deduction for property tax payments, capped at $10,000 per year. [...]

States that would be hit hard by the elimination of a SALT deduction have enough Republican members in Congress to derail the tax legislation. Many have already said they would like to see the cap raised on the property-tax deduction or the income-tax deduction retained.

House Republicans do not have a great deal of space to maneuver in.

The first draft of their bill weighed in just shy of the $1.5 trillion deficit threshold set by their budget resolution for fiscal 2018. The only way they can preserve more deductions is by eliminating some of the tax cuts. In each case, preserving a deduction or eliminating a tax cut comes with its own potential political consequences. It's a minefield.

While House Republican rewrite significant portions of their bill, Senate Republicans are still working on their own version.

House Republicans intend to pass their bill before Thanksgiving, but it's not clear if the Senate will even release their version by then. Republicans hope to reconcile the two and send the final product to Trump's desk before the end of the year, but the clock is ticking.

Congress must also fund the federal government and raise the debt ceiling in the next 30 days.

  • 1933john

    Keep all four eyes on the
    8+ trillion in FICA Funds.

  • ninjaf

    What might be interesting is that the red welfare states might just learn that they are, in fact, welfare queens kept afloat by those coastal elites (even with the current SALT deductions for Federal taxes) they despise so much.

    • Tony Lavely

      Ya must be a librul… We don believe nothin you libruls say.
      /snark

  • muselet

    Speaking to Fox News Sunday, Republican House Speaker Paul Ryan said there were a “host of ideas” being considered as lawmakers begin revising the bill, though he expected the broad outlines to remain the same.

    He added that he still believes the House is on track to vote on a revised tax bill before the U.S. Thanksgiving holiday on Nov. 23.

    That “host of ideas” presumably consists mainly of yet more ways to punish blue states and likely Democratic voters, and to lower taxes even more for the wealthiest. It wouldn’t be an R tax bill without those things.

    As for the timing, I have some doubts. There are a lot of squabbling factions that must agree before anything can pass, and Thanksgiving is only 2½ weeks away. However, anything is possible with enough magic asterisks.

    It’s exhausting, hoping that the Rs’ incompetence and internal divisions will keep them from destroying absolutely everything.

    –alopecia

    • Dread_Pirate_Mathius

      The leading proposal is to simply add a +50% surcharge on all taxes levied against anyone who voted for Hillary Clinton.

      • muselet

        If they thought they could get away with it …

        –alopecia

  • Aynwrong

    Clowns.