Sun
Nov 19 2017
06:15 pm

Sen. Bob Corker (865) 637-4180
Sen. Lamar Alexander (865) 545-4253

The bill hideously redistributes upwards and is wildly unpopular.

From ITEP below -

The tax bill reported out of the Senate Finance Committee on Nov. 16 would raise taxes on at least 29 percent of Americans and cause the populations of 19 states to pay more in federal taxes in 2027 than they do today. The lowest-earning three-fifths of Americans would pay more on average in federal taxes, while the top 40 percent on average would receive a tax cut. The bill would increase the deficit because of the substantial tax breaks it would provide to the wealthy and to foreign investors who own stocks in American corporations and who would therefore benefit from the bill’s corporate tax cuts.

In 2027, the richest 1 percent of Americans would receive an average tax cut of more than $9,000 while the bottom three-fifths of income earners would face an average tax hike of $160. In some states, low- and middle-income earners would have larger average tax increases.

preview_DO7FumTXUAA3-hF.jpg_large.jpg

Image Source - Michael Linden, Fellow at Roosevelt Inst., Policy & Research Director at the Hub Project

From CBO below -

The Congressional Budget Office and JCT’s staff have analyzed the distributional effects of those changes in spending using income categories consistent with JCT’s analysis. In calendar year 2021, for example, those excluded amounts would total about $19 billion:
$18 billion less spending for Medicaid,
$4 billion less spending for cost-sharing reduction (CSR) payments,
$1 billion less spending for the Basic Health Program (BHP), and
$4 billion more spending for Medicare because of changes in payments to hospitals that serve a disproportionate share of low-income patients.



continued...

Further Reading
Updated 11/20/17 Tax Policy Center Analysis
DISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT AS PASSED BY THE SENATE FINANCE COMMITTEE

Institution on Taxation and Economic Policy - Revised Senate Plan Would Raise Taxes on at Least 29% of Americans and Cause 19 States to Pay More Overall

Tax Policy Center - The Two GOP Tax Plans Differ In Details But Both Are Big Tax Cuts For Business, Modest Reductions For Households

Marcy Gordon at AP - Winners and losers under the Senate tax overhaul proposal

Congressional Budget Office - Distributional Effects of Changes in Spending Under the Tax Cuts and Jobs Act as of November 15, 2017

Center on Budget and Policy Priorities - Commentary: Senate Tax Bill Revisions Make Its Fundamental Tradeoffs — Big Tax Cuts for the Top, Little Gain for Low- and Moderate-Income Families — Even Harsher

Stephanie Kelton in the NYT - How We Think About the Deficit Is Mostly Wrong

Sarah Anderson in the NYT - It’s a Myth That Corporate Tax Cuts Mean More Jobs

Mike Knapp's picture

*

Senate GOP tax bill hurts the poor more than originally thought, CBO finds

By 2019, Americans earning less than $30,000 a year would be worse off under the Senate bill, CBO found. By 2021, Americans earning $40,000 or less would be net losers, and by 2027, most people earning less than $75,000 a year would be worse off. On the flip side, millionaires and those earning $100,000 to $500,000 would be big beneficiaries, according to the CBO’s calculations. (In the CBO table below, negative signs mean people in those income brackets pay less in taxes).

jbr's picture

Senate is about to vote on a tax bill it is still writing

Republicans say they have the votes! They're going to pass a massive tax reform bill Friday night that would permanently lower corporate tax rates and undo the Obamacare individual coverage mandate. And a bunch of other stuff. We're not exactly sure about everything it would do yet. Why? Because we haven't read the tax reform bill.

Nobody has. Even the lawmakers who are about to vote on it. It's still being written.

Sen. Elizabeth Warren, a Democrat from Massachusetts, said Republican senators just released the bill, which is about 500 pages. She said she has an hour to read the bill, along with several pages of edits, before she votes.

"I spent more than an hour making a decision about the refrigerator that we recently bought," Warren said.

The Senate is about to vote on a tax bill it's still writing

bizgrrl's picture

Senate tax bill passes, 51 to

Senate tax bill passes, 51 to 49. Sen. Bob Corker (TN) was the one Republican no vote. The bill has to be reconciled with the House bill before sending to the President for a signature.

  • $1 trillion deficit increase that congressional scorekeepers say will result from the bill
  • lower the corporate tax rate from 35 percent to 20 percent, starting in 2019.
  • The Senate tax bill would also temporarily cut tax rates for families and individuals until 2025
  • will subject fewer people to the estate tax, but not eliminate the tax
  • repeals the individual mandate from the Affordable Care Act
  • curtailing deductions for state and local taxes
  • scaling back alternative minimum tax for individuals and companies
  • allow pass-through businesses and C corporations to deduct 23 percent of their income from their taxes and then pay taxes on the remaining income
  • expanding the use of education savings accounts to allow them to apply to expenses for religious schools and homeschooled students
bizgrrl's picture

Other proposed measures for

Other proposed measures for the Senate tax bill included:

  • lifting of a 1954 ban on political activism by churches
  • conferring of a new legal right for fetuses
  • could trigger rules mandating cuts to Medicare
  • tax investment earnings from university endowments (believe this is for private universities)

However, it is unknown yet if these measures got in the final bill. The bill is approx. 500 pages with changes handwritten in the page margins.

Mike Knapp's picture

Letting it all hang out...

Andrew Desiderio in the Daily Beast - House Republicans Already Shooting Down Tax Bill's Promises

Moving the Collins and Flake deals through the House was always going to be an uphill climb, with a conservative bloc sharply opposed to both measures, having dubbed DACA a de facto form of amnesty and arguing that the health insurance market stabilization bills that Collins supports are tantamount to a bailout for health insurers and what they view as a broken system. On Monday, those conservatives railed against McConnell for making promises on legislation that they have long opposed.

jbr's picture

Samantha Bee on tax bill

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