Why is Russia such a cesspool?

[webfact]

U.S. Republicans debut tax bill, Trump seeks first win

By David Morgan and Amanda Becker

 

U.S. President Donald Trump predicts the GOP tax overhaul bill will be passed by the end of the year calling it a 'great Christmas present' for the American people. 

 

WASHINGTON (Reuters) - Republicans in the U.S. House of Representatives unveiled a tax bill on Thursday that would cost $1.51 trillion and deliver deep tax cuts as promised by President Donald Trump, setting off a race in Congress to give him his first major legislative win.

 

In what would be the largest overhaul of the U.S. tax system since the 1980s, Republicans called for slashing the corporate tax rate to 20 percent from 35 percent, cutting tax rates on companies' foreign profits and on individuals and families.

 

Congressional passage of the legislation, which would affect nearly every U.S. company and family, was far from certain. Some business groups quickly came out against it and Democrats swiftly condemned it as a giveaway to the rich.

 

Contentious provisions will test Republicans, who control the White House and both chambers of Congress, but have been unable to deliver major legislative achievements for Trump since the businessman-turned-politician became president in January.

 

A number of provisions in the bill would hit taxpayers in Democratic-leaning states hardest, such as rolling back deductions for state and local taxes and cutting in half the popular mortgage interest deduction. Lobby groups for the real estate industry and small businesses condemned the legislation.

 

Titled the Tax Cuts and Jobs Act, it would benefit wealthy Americans by lowering their income taxes, cutting corporate and other business taxes, phasing out over six years the estate tax on inherited assets and repealing the alternative minimum tax.

 

"This is a very important and special moment for our country, for all Americans. Are we going to let the defenders of the status quo win and see our country continue down this downward spiral?" asked Republican House Speaker Paul Ryan, despite data showing eight straight years of economic growth.

 

AMBITIOUS TIMETABLE

 

Meeting with Ryan and other key House Republicans, Trump told the lawmakers he was counting on them to maintain the momentum for tax cuts. He repeated his request that Congress send him the legislation to sign into law by the U.S. Thanksgiving holiday on Nov. 23.

 

That is an ambitious timetable for such a long, multi-faceted proposal that will face a ferocious lobbying battle among business sectors affected by the bill and determined opposition from most Democrats in Congress.

 

The bill presented by the tax-writing House Ways and Means Committee would consolidate the current number of tax brackets to four from seven: 12 percent, 25 percent, 35 percent and 39.6 percent. An earlier Republican tax outline had called for cutting the top rate for the highest earners to 35 percent.

 

In the face of criticism for cutting top-earners' taxes, the top 39.6 percent bracket was restored, but the way it is applied in the bill could represent a tax cut for married, high-income earners filing joint returns.

 

On housing, the National Association of Home Builders said the bill would damage home prices and punish urban homeowners.

 

"We're concerned if enacted, this bill will throw us back into another housing recession," Jerry Howard, the group's president, said in an interview.

 

The group said the provision in the bill capping the mortgage interest deduction for future home purchases at $500,000 - half the current amount - was unacceptable.

The bill would also repeal the existing deduction for state and local income and sales taxes and cap the deduction for state and local property taxes at $10,000. Those provisions would hammer Americans in high-tax states such as California, New York, New Jersey, Pennsylvania and Illinois.

The National Federation of Independent Business, a powerful small business lobby, came out against the bill. The U.S. Chamber of Commerce, the largest lobbying group in Washington for large companies, backed the Republican tax package.

 

With Democrats solidly opposed, Republicans can ill afford to lose many votes from within their own ranks as they aim to pass the bill in the coming weeks, especially in the Senate where they have only a slim majority.

'BILLIONAIRE BUDDIES'

 

"Ultimately, what the American people really get from this tax plan is a huge bill for the debt incurred to pay for tax breaks that line the pockets of Donald Trump personally along with his billionaire buddies. Like a Trump University degree, it is phony," said Texas Democratic Representative Lloyd Doggett.

 

Ways and Means Committee Chairman Kevin Brady said the bill as currently drafted would add $1.51 trillion to the deficit over a decade, $100 billion more than allowed under a budget passed by Congress that would let the measure pass the House and Senate with no Democratic votes. Brady predicted that final legislation would be within the $1.5 trillion limit.

 

Congress' Joint Committee on Taxation estimated late on Thursday that the bill would reduce federal tax revenues over 10 years by $1.49 trillion.

 

The bill's architects avoided a likely showdown with millions of Americans by deciding not to seek changes to the popular tax-deferred 401(k) retirement savings program.

 

The bill would roughly double the standard deduction for individuals and families. But it would repeal a personal exemption of $4,050 that taxpayers can currently claim for themselves, their spouses and any dependents.

 

The legislation would also subject large private universities to a 1.4 percent excise tax on investment income and repeal a long-standing prohibition on religious institutions being involved in political activities.

 

The bill would cap the maximum tax rate on small businesses and other non-corporate enterprises at 25 percent, down from the existing maximum rate on "pass-through" income of 39.6 percent. It would set standards for distinguishing between individual wage income and actual pass-through business income to prevent tax-avoidance abuse of the new, lower tax level.

 

It would create a 10 percent tax on U.S. companies' high-profit foreign subsidiaries, calculated on a global basis, in a move to prevent companies from moving profits overseas.

 

Foreign businesses operating in the United States would face a tax of up to 20 percent on payments they make overseas from their American operations.

 

U.S. equities have rallied in 2017 to a series of record highs, partly on expectations of deep corporate tax cuts.

 

Shares of U.S. homebuilders fell after the bill was released, with luxury homebuilders including Toll Brothers <TOL.N> taking the biggest hit. As investors parsed its provisions, the Dow Jones Industrial Average <.DJI> closed up modestly.

 

The Ways and Means Committee will begin formal consideration of the bill on Monday before the full House can vote on it. It also must pass the Senate, where Republicans hold a slimmer 52-48 majority and failed earlier this year to garner enough votes to approve a major healthcare overhaul sought by Trump.

 

(Writing by Will Dunham; Editing by Kevin Drawbaugh and Peter Cooney)

 

-- © Copyright Reuters 2017-11-03

[Samui Bodoh]

22 minutes ago, webfact said:

Ways and Means Committee Chairman Kevin Brady said the bill as currently drafted would add $1.51 trillion to the deficit over a decade

What has happened to the Republican party?

 

Does the US tax system need to be revamped? Yes, it is a quagmire of loopholes and special interest perks that decry common sense. 

 

Does the US tax system need to be simplified? Yes, there is an old saying that "ignorance of the law is no defense", but how could any one individual understand the total complexity of the US tax code?

 

Does the US need tax cuts? That is a much more tricky question, and depends a great deal on one's personal ideology. Lower taxes and fewer services for the populace, especially the poor vs higher taxes and greater services/assistance to the less fortunate is a fascinating debate. Further, what is the appropriate rate that balances these differing ideas? Finally, will the proposed cuts benefit the economy?

 

In my view, having a large tax cut when the US is so deeply in debt is an act of madness. Adding 1.5 trillion dollars to the debt without any real surety that that it would be repaid is an act of economic suicide.

 

The US Republican party used to be the party of economic responsibility. Now, under the gas bag Trump, it seems to be the party of "Eff it! Let's throw some dice!"

 

It is sad to see a once great power shooting itself in the crotch.

 

PS Ending the estate tax or "death tax" as some call it, is also madness. It is simply the Republican party giving a BJ to their donors. Shame!

 

[tonray]

No tax plan is worth its salt unless a radical reform of the system is undertaken. All the special interests keep the code ridiculously large and complicated. Increasing the deficit is almost a given unless you also address SS and Medicare/Medicaid with reform.

 

Both Democratic and Republican efforts are simply fodder for their respective bases and don't address the real issue a tax system that is skewed largely in favor of special interests with large amounts of money to buy Congress off.

[ilostmypassword]

1 hour ago, tonray said:

No tax plan is worth its salt unless a radical reform of the system is undertaken. All the special interests keep the code ridiculously large and complicated. Increasing the deficit is almost a given unless you also address SS and Medicare/Medicaid with reform.

 

Both Democratic and Republican efforts are simply fodder for their respective bases and don't address the real issue a tax system that is skewed largely in favor of special interests with large amounts of money to buy Congress off.

Obama and the Democrats substantially raised taxes on the rich. That's a fact.

[tonray]

10 minutes ago, ilostmypassword said:

Obama and the Democrats substantially raised taxes on the rich. That's a fact.

What does that have to do with my comment about reform. ?

[Foozool]

wow ❗️what a opportunity for GOP since Trump needs help at this moment. Tax is always republicans 1st prooority. It is the time that republicans pay back their rich supporters, those who always pay for senators campaigns. 

There is nothing for lower middle or middle class. 

They Just try to fool people with their attractive plan as usual. 

US will get in deeper dept. For years. 

Trump wants to make America again by tax cut ? Old story of republicans. 

[siamike]

This latest tax rewrite is all about politics; the republicans fear that if they go into the midterm elections with zero legislative wins at a time when they control the house, the senate, and have a republican president, that they will most likely loose at least some seats, and perhaps even lose their majority in the house.  They're also counting on voters being so stupid and ill informed that the republicans can call their plan "a Christmas gift for the majority", and the voters wont realize they've been lied to yet again until its far too late.

[ilostmypassword]

Just now, tonray said:

What does that have to do with my comment about reform. ?

You wrote this:

"Both Democratic and Republican efforts are simply fodder for their respective bases and don't address the real issue a tax system that is skewed largely in favor of special interests with large amounts of money to buy Congress off."

Tax increases on the rich - the most privileged special interest - is tax reform.

•  

[Scott]

Troll post and replies removed.  

 

[Sir Swagman]

Looks to me like the bouffant buffoon has looked at taxes he pays (or, more likely 'should pay') and doesn't like, then fiddled with those aspects of tax.