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Trump's Tax Plan Is Going To Make Dems Livid

25 September 2017

Reps. Mark Meadows, R-N.C., and Jim Jordan, R-Ohio, leaders of the hard-line House Freedom Caucus, wrote in a Wall Street Journal opinion piece this week that they wanted to see new details of the tax plan before offering their support.

And as Trump has reached out across the aisle - as well as lashed out at members of his own party - the ratings of Republican leaders Mitch McConnell and Paul Ryan have fallen to new lows. However, since its release, numerous House Republicans' proposals - the border adjustable tax (BAT), in particular - received pushback from a variety of industries and ultimately forced tax-writers to reassess their approach to tax reform. But as the difficulties the GOP has faced this year in passing a GOP health-care bill have shown, keeping the party together can be a tricky proposition.

The Big Six have spent the last month and a half continuing to seek agreement and hash out key policy details.

While Republicans agree on cutting tax rates, for instance, they're still undecided on whether those cuts should be paid for in full.

Senate Finance Committee Chairman Orrin Hatch, whose panel would use the budget figure in crafting a tax reform bill, told reporters he was not sure that revenue losses of $1.5 trillion were needed for tax reform.

While we do not expect any additional hearings in the House, Members are continuing the work behind the scenes this month by holding "listening sessions" to discuss individual, business and global tax policy issues.

House Ways and Means Committee Republicans plan to meet late into the evening Sunday and all day Monday to try to narrow their differences on the tax plan.

"There's no way you're going to be able to do tax cuts that pay for themselves", said Louisiana Senator John Kennedy, another budget committee Republican. We know that White House wants to cut the corporate tax rate - the highest rate in the world - from 35 percent to something south of 20 percent. "But I think most people would concede that cutting taxes does stimulate the economy".

With Democrats unanimously opposed, two is the exact number of GOP votes McConnell can afford to lose. But we've got some time.

It is clear that there is a palpable desire - indeed, a political imperative - for enacting tax reform in 2017.

A repeal of the state and local tax deduction is considered most likely since it would bring in the most money, raising north of $1 trillion over a decade by some estimates.

First and foremost is the need for a budget.

The battle underway in Washington to enact pro-growth tax reform is itself a flawless storm. As such, the Senate will nearly certainly need to use the budget reconciliation process to pass its tax bill with a simple majority. In 2016, the Treasury estimated that most of the benefit of a 15 percent pass-through rate would go to the top end of the income distribution. While that may sound simple, both Chambers have thus far found the process to be challenging. Tax reform represents an opportunity for Republicans in Congress to improve communities across the country with a single piece of legislation and they can not allow it to pass. On a separate question, three in four Americans (74%) support hurricane aid to victims even if no other correspondent funding is cut, including a broad seven in 10 conservatives (69%). But by 1980, most Democrats in the House voted against a 25 percent across-the-board tax cut.

The White House plan for a massive package of tax cuts is gaining new momentum as Republicans attempt to set aside months of intraparty squabbling and unify behind a key part of President Donald Trump's agenda.

For small business owners, tax reform is vital to staying competitive in the increasingly competitive economy. The policy that will provide the most beneficial impact to Americans is comprehensive tax reform. Still, some Republican constituencies (i.e., the Freedom Caucus) may well be unmoved in their positions despite the threat of President Trump's willingness to negotiate across the aisle, potentially setting up an interesting fight within the Republican Party.

Third, give the middle class a real tax cut.

Another 28 percent want both business and individual tax cuts.

Trump's Tax Plan Is Going To Make Dems Livid