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House Passes Tax Cuts and Jobs Act | What’s Next for the GOP Tax Plan?

congress-house-tax-cuts-jobs-actOn Thursday, the House approved the Tax Cuts and Jobs Act with a vote of 227-205. The bill passed along party lines, with no Democrats voting in support of it.

The Tax Cuts and Jobs Act aims to simplify taxes for Americans, reducing the country’s seven tax brackets down to four. According to House Speaker Paul Ryan, the bill would save the average American household $1,182 per year on their taxes. If passed by Senate, the $1.5 trillion tax bill will result in the creation of 890,000 new jobs.

House Republicans have lauded the bill’s future impact, claiming that 90% of Americans “will be able to file their taxes on a postcard-sized form.” Additionally, the Tax Cuts and Jobs Act would reduce the corporate tax rate from 35% to 20%, promoting economic growth and bringing jobs back to the United States.

President Trump appeared on Capitol Hill encouraging Republican lawmakers to support the bill. “Taxes are going really well”, he told reporters.

With GOP leaders aiming to approve a final tax bill by the end of the year, all eyes are focused on the Senate. Senate Republicans have introduced their own version of a tax overhaul in recent days, with several differences from the House version– including keeping more tax brackets, reducing individual tax rates, retaining the estate tax at double the allotted exemption, and phasing in a corporate tax cut over several years. .

Most importantly, the Senate version of the bill also repeals the individual mandate put in place by the Affordable Care Act. Senate Majority Leader Mitch McConnell explained that including the individual mandate repeal in the tax overhaul bill would garner support from Republican members as they aim to mitigate the harmful effects the tax has on lower income and middle income families.,

We’re optimistic that inserting the individual mandate repeal would be helpful,” McConnell said.

The Joint Committee on Taxation has released a preliminary report of the distribution effects of the bill, which can be read here.

“Passing this bill is the single biggest thing we can do to grow the economy, to restore opportunity and help those middle-income families who are struggling,” House Speaker Paul Ryan said in a recent statement.

Some Republicans are skeptical of the bill, including Senator Susan Collins (R-ME). As a more moderate Republican, Collins has expressed concerns that the repeal of the individual mandate was an unwise decision. “I personally think it complicates tax reform to put the repeal of the individual mandate in there,” Collins explained, worrying that the alteration would only end up increasing health care premiums for many Americans.

Democrats across the board have been highly critical of the bill since it was first introduced, calling it a scam and claiming it will only harm the middle class while serving corporations and big businesses.

“Now the ball is in the Senate’s court,” Vice President Mike Pence said after the House vote, “the next few weeks are going to be vitally important and they’re going to be a challenge.”

Early Friday morning, President Trump tweeted, “If Democrats were not such obstructionists and understood the power of lower taxes, we would be able to get many of their ideas into Bill”.

The president later tweeted, “If we get Tax Cuts and Reform, we’ll really see some great results.”

The bill is expected to be considered on the Senate floor the week after the Thanksgiving recess.

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Read more articles by Cole P. Zail

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Jim Hawkins

My major concern is that the Senate has too many RINOs like John McCain, the Trump hater. It also has members from the states that will lose their large deduction of high-state-income-tax deductions that the rest of us have been paying for throughout the decades. Republicans have only a two vote majority and the Democrats have proved regularly that they will not support anything that our elected President Trump proposes. They are truly anti-American obstructionists. I was truly amused as I watched the Senate committee mark up the Senate GOP Tax Code bill the other night on C-SPAN. Every single vote on amendments was 14 to 12. I will support any and all efforts to remove any and all Republican senators that vote against this long awaited tax reduction. I will also support the schooling of all congress members that do not understand the simple fact that CORPORATIONS DO NOT… Read more »

John

Corporations do not pay taxes they just pass it along to you and me. This is what too many people do not understand. The problem is that the deficit is caused bye wasteful spending in Washington including tens of thousands of unnecessary government jobs. This is why Washington is one of the richest areas in the country and yet produces no products.

BobA

Susan Collins a moderate Republican? Why not call her what she is? She is no more a Republican than Honest Hilly.

Rik

Tax reform plan? … Where’s the REPEAL OF OBAMACARE??? … Without it, they’ll just be guaranteeing the next Presidential Election to the Progressively Communist Democrats!!! … ALL THESE POLITICIANS DISGUST ME, FUMIGATE THEM ALL!!!

Tom Lavin

If AMAC would really want to show us how the tax bill would affect us, they would provide a form so we could fill it out to determine what our tax would be. How innovative!

MamaBess

What is in this new tax code for retirees?

Al Capuano

Thank you Jim Hawkins for your powerful, honest, and timely comments below. I agree with everything you said. I am sick of these Rhinos who are anti-Trump to the point of joining the Democratic Party. Good riddance I say and I also will support any effort to get them out of office. Note how Susan Collins starts out her comment- “I think”- it’s the same with all of them. They forgot who sent them there. They should start out their sentences with ” My constituents think…” We should stop calling them “Never Trumpers” and start calling them “Never Agains”. I do not think the Senate will pass their bill with all the garbage in it. What a shame. Gridlock again! Thanks to these Never Agains that are clogging up the Republican party. Why vote if your own party members can’t support the will of the party?

Ivan Berry

Compromise, to answer the title’s question. Nobody knows what the Senate will attempt to change. It really looks like a diversion so we do not notice what Ryan and his demo buddys are planing for their intel gathering for policy planning future. The kids are destined to be tracked from pre-school all the way into employment, supposedly to justify all sorts of policy agendas as well as student loans and college research. From the cradle to the grave BIG Momma at it again.

John Craig

If Susan Collins along with Mccain and McConnell weren’t libtards in repub clothing, we might get this bill passed, but I see too many Senators in Soros’s and the Dark Web’s back pocket, for this to pass the Senate!

Dennis Prince

If the Senate wants to help retirees with the new tax bill, a) stop including Social Security payments in the calculation of taxable income and b) stop forcing the withdrawal of minimum IRA amounts each year. If I money from my IRA, I’ll take it out. But if I don’t, just let me leave it in the account to continue to grow. Otherwise, I don’t see much benefit to the tax reduction act to people who no longer work.

Wayne Peterkin

I have not looked into the details to see how this tax reform bill will affect my wife and I but I suspect it will help. However, that is not the important question even though we are on a fixed income and any help is welcome. What’s important is what it will do for the economy as a whole. If it promotes a very robust and sustained economy growing at a 3.5 – 4% rate, that means more jobs and higher wages which benefit everyone, even including those of lower incomes who pay no taxes. That should be the goal. Improving the economy for everyone, not targeting any specific groups. A 4% growth rate will also increase tax revenues over time by roughly the same percentage given a stable tax rate. The best part of the bill, to me, seems to be the corporate/business tax rate cuts which will help… Read more »

Dennis

It’s a shame that the Democrats have put party ideology and their hate for Trump above the American people. Maybe if the
tax bill passes both houses and is signed into law by President Trump, a lot of misguided Democrat voters will vote Republican in future elections once they see that it is really the Republicans that are looking out for them and their families.

W M Guice

Us tax payers are always supposed to contribute more to support many absurd govt spending programs that afford us nothing … how about the govt cutting their expendures and letting those savings offset some of the tax dollar requirements.

Vance Porter

I’ve wondered for some time. Is Susan Collins retarded?

Ray Wade

Hopefully, our gutless Senate will get a clue.

Stephen Eldridge

The GOP tax plans, while doing some good (i.e., reducing corp & pass-through tax rates), also contain suicidal, ultimately fatal provisions.

The House Bill would take about 10MM people OFF the taxpaying rolls (the Senate Bill would take off about 5MM). This would make even worse, the situation today in which only 48% pay ANY Income Tax (IT) and the top 20% pay an astounding 93% of all the IT, while earning only 60% of the income.

The GOP Bills would make taxpayers and even smaller, indefensible, permanent MINORITY.

Joe C.

With the House version of 12% tax on income less than 75,000, taxes would increase for many on fixed income. Do the math. Assume an income of $40,000. After standard deductions of $23,100, the current taxable income is $16,900. At current rates of 10% first 14,000, +15% on $2,900. the tax is $1,835. The taxable income under the proposed plan is $40,000 less a deduction of $24,000 or $16,000.
At the proposed rate of 12%, the new tax would be $1,920. Where is the tax cut?

Brenda

Whatever happened to the real reform like flat tax. Tired of those who pay nothing but get a tax return anyway…….tired of paying through the nose for those who abuse the system…..I want to see real reform and that includes cutting government all abuse of our tax money……..cut welfare, food stamps, taxpayer funded housing etc…….don’t hear about government spending less as part of the equation

Charles McDuff

Amac has a chance to act as the voice of reason. I was dumbfounded when AARP went on the record to endorse Obamacare. Now, with this “tax reform “, we seniors stand to be shafted again. If this tax bill provides for a set deduction and eliminates the already penalized deduction for medical expenses, those of us seniors with major or catastrophic expenses will be ruined. This is compounded by the threat to reduce medical cost support so that more money is available to cover the expenses of illegals and ne’er do wells. Our medical bills last year were over $22,000. Imagine if these expenses were $50,000. My personal savings would be gone in about three years. I want Amac to be steadfast with the goal in sight to read the fine print and come down on the side of our senior citizen interests.

Renrag Elrem

While they are supposedly improving the tax code WHY DON’T THEY ELIMINATE THE INCOME TAX ON SOCIAL SECU RITY??
We old f+rts could use the extra money as medical insurance premiums continues to increase on an annual basis!!