Congress is relying on the support of big business and the top 1% to push this tax bill, but they don’t have it.
Republicans in the House are trying to fast-track their bill towards a vote and pull their first major victory of the year.
Paul Ryan wants the bill to be ready for a vote by Thanksgiving, hopefully this Thursday or Friday. The bill is expected to pass in the House, without major last-minute tweaks that were made in an attempt to pass previous Obamacare repeal bills.
The bill condenses the seven income brackets to four, doubles standard deductions to try and curb itemized deductions, reduces state and local tax deductions and cuts the corporate tax rate to 20% immediately, among other changes.
The Senate has released its own plan, which differs from the House’s in some significant ways. For example, the Senate’s plan does not condense the brackets, has a one-year delay on dropping the corporate tax rate, and keeps deductions for student loans and medical expenses, which the House wants to get rid of.
What’s Happening Now:
One of the biggest criticisms of both bills is major cuts on the wealthy and businesses, without a focus on the middle-class, especially since the House wants to get rid of deduction for students and the sick, those most vulnerable to debt.
And those who would benefit most heavily under the tax plan, the super rich and business owners? However, over 400 millionaires and billionaires don’t want the plan to pass, either.
A group called Responsible Wealth, a network of wealthy individuals who promote progressive issues, is planning to send a request to Congress to not cut their taxes under the new tax legislation.
Those wealthy individuals involved said that the bill will worsen inequality and add to the country’s debt, and it shouldn’t, especially not to give them the tax break that they do not need.
One of the participants, former American Airlines chief executive Bob Crandall, has a lot to say about the plan, according to The Hill:
“I think a tax cut is absurd,” said Bob Crandall, a former American Airlines chief executive who signed the letter.
Republicans are “saying we can’t afford to spend money, but we can afford to give rich people a huge tax break. This makes no sense,” Crandall said.
No, it doesn’t make sense. And it shows where the GOP’s priorities are: protecting people like them and their own interests.
The Senate bill is slightly better off for all income groups when compared to the House bill, and The Joint Committee on Taxation said that the Senate bill would bring taxes down for all income groups, on average.
“On average” is the key word though, as some would still see increases in their taxes. What’s more, those who make $20,000-$40,000 a year would see increases within the next few years.
The House, in order to prioritize the wealthy, had to make some cuts. After five years, some tax credits for families would expire.
The Republicans keep claiming that helping out corporations and the rich protects “small businesses” and clears the way for lower taxes for everyone.
And yet, the group they’re trying to benefit are telling them they don’t want the handout.
Your move, Paul Ryan.
H/T: The Hill