Fast and Furious: GOP Splits on Rich Folks' Rate Hikes
Republicans in the House unveil tax proposal for Trump's comprehensive bill
In a hotly debated move, House Republicans are working on the Trump administration's "big, beautiful bill" that could reshape the tax landscape, report Chad Pergram, our senior congressional correspondent in an exclusive for Special Report.
The legislation, which aims to make President Donald Trump's 2017 Tax Cuts and Jobs Act (TCJA) permanent, took a step closer to reality last Friday as the GOP revealed portions of the proposal. However, the millionaires' tax bracket and state and local tax (SALT) deduction caps, two highly contentious issues, seem to be lingering like a storm cloud on the horizon.
Republican leaders want to avoid a 20% tax hike for millions of Americans in case TCJA expires at the end of this year, and they're looking at extending the child tax credit and a higher estate tax liability (or "death tax") threshold among other measures. But those aren't the only red-hot issues that have caught the attention of warring Republican factions.
Progress Is a Slippery Slope
The bill, once complete, is expected to go through the Ways & Means Committee and the House's tax-writing panel on Tuesday afternoon. But watch your step: both the SALT deduction caps and a millionaire's tax hike are explosive topics, especially when you consider that Republicans have a razor-thin three-vote majority in the House.
Go Big or Go Home?
The omission of a millionaires' tax bracket in the current proposal has many shaking their heads. Candidate Trump proposed a small tax increase for the ultra-wealthy, but GOP lawmakers are reportedly facing a wall of opposition to the idea. Meanwhile, the SALT deduction cap continues to fire up blue state Republicans critical to maintaining the House majority, who struggle alongside GOP legislators from low-tax red states.
Smith vs. Smith
House Ways & Means Committee Chair Jason Smith said his panel will push the bill through on Tuesday, but with virtually no Democrats backing Trump's colossal Republican policy overhaul, House Republicans will have to tow the line to get anything passed without Democratic support.
Score One for Family Values
While millionaires' tax brackets and SALT deductions may make headlines, the revised bill also plans to eliminate taxes on tips, overtime wages, and Social Security checks for retirees. Chief strategist Jason Smith commented, "Pro-family, pro-worker tax provisions are the heart of President Trump's economic agenda that puts working families ahead of Washington and will create jobs, grow wages, and investment."
[1] Enrichment Data: http://www.snopes.com/news/2017/12/06/gop-millionaire-tax-bracket-trump-plan/[2] Enrichment Data: https://www.axios.com/house-gop-tax-bill-heres-what-changed-df089f3d-eb86-4bfa-b556-d3e962a7ba5e.html
- The GOP is currently working on a revised tax bill, aiming to make the 2017 Tax Cuts and Jobs Act (TCJA) permanent, which promises to significantly influence the tax landscape.
- One contentious issue in the proposed bill is the state and local tax (SALT) deduction caps, which have been a point of contention for Republican members, particularly those from high-tax blue states.
- The proposed bill also omits a millionaires' tax bracket, a proposal espoused by candidate Trump, due to reported opposition from GOP lawmakers.
- The bill, once complete, will likely face challenges in passing without any support from Democrats, given the razor-thin three-vote majority the GOP holds in the House.
- The revised bill also includes the elimination of taxes on tips, overtime wages, and Social Security checks for retirees, in line with President Trump's economic agenda focusing on family values and job creation.