GOP releases final draft of tax reform bill

Share

President Trump on Saturday touted how "fantastic" the GOP tax bill will be for "middle-income people" ahead of anticipated votes in the House and Senate next week.

It's less than the $21,720 in state and local taxes that the average New Jersey taxpayer already deducts, but allows those who pay less than $10,000 in property taxes to add their state income or sales tax payments to reach the maximum break. Now, while he still does not think that this bill is flawless and he would have preferred to have reached a more bipartisan consensus on parts of the legislation, will vote for this "once-in-a-generation opportunity" to make businesses more competitive. "Tax reform under Republican control of Washington is happening".

" The tax credit for expenses associated with adoption remains unchanged, despite early talk of eliminating it".

The House bill would have repealed the Johnson Amendment - a law that prohibits nonprofit groups with tax-exempt status (like churches and charities) from directly participating in partisan politics. Conservative advocacy groups have pushed to get those restrictions repealed, but came up short this time. In addition, graduate student tuition waivers would not be taxed. Deb Fischer, R-Neb., to create a two-year pilot program offering tax credits to employers who offer their workers paid family and medical leave.

Critics of Fischer's proposal have questioned whether that's enough incentive to truly change employer behavior, but Fischer hailed its inclusion Friday in a press release and said it represents progress.

Republicans appeared to have secured enough support to pass the plan after one critical holdout, Sen.

"I can't in good conscience support it unless we are able to increase the refundable portion of it", Rubio told reporters Thursday afternoon before echoing the statements on Twitter.

Most individual changes would expire at the end of 2025, meaning the old tax code rates and deductions would kick back in in 2026, unless Congress passes another law before then.

The legislation guts a deduction in place since the first income tax.

However, a study by the nonpartisan Tax Policy Center of the Senate bill - which is likely to bear the most resemblance to what comes out of conference - found that 62 percent of the benefits from the tax cuts would be accrued by income earners in the top 1 percent, while 0.1 percent of income earners would suck up 42.3 percent of the benefits from the tax overhaul.

The tax plan has enormous benefits for many businesses, with a permanent and sharp reduction in tax rates that Republicans believe will trigger more economic growth and lead to higher wages.

This report includes material from the Washington Post and the Tribune Washington Bureau.

Share