Tax chaos - Trump strikes again. By Jennifer Rubin

[DonViejo]

Tax chaos — Trump strikes again

By Jennifer Rubin November 9 at 2:00 PM

The Post reports:

GOP Senate leaders on Thursday plan to unveil legislation that would delay cutting the corporate tax rate from 35 percent to 20 percent until 2019, four people briefed on the planning said, a major departure from [President] Trump’s insistence on immediate changes that he says are necessary to spur the economy.

Some Senate Republicans objected internally to the one year delay, but they were overruled.

To try to prevent companies from waiting until 2019 to invest, Senate Republicans will propose to allow companies to immediately deduct all capital investments in 2018 to incentivize them to spend more money immediately, the people said.

This comes after Trump tells Senate Democrats they’ll like the Senate version better. That kind of cutting the legs out from under the House GOP is on a par with calling the House health-care bill “mean.” In this case, Trump’s comments are actually worse because the House hasn’t yet marked up the bill, let alone brought it to the House floor for a vote. And now, after Trump signaled that their bill is going into the trash, what Republican worried about corporate giveaways and insufficient help for the middle class will vote for a bill that is polling terribly? (This really is health-care reform all over again.)

The House bill has already been taking a beating from critics who point out that it’s a love letter to corporations and the rich. The Tax Policy Center (which reworked its figures after an initial error) finds, “In 2018, the bill would cut taxes for middle-income households by an average of about $800 or 1.5 percent of their after-tax incomes. Those in the top one percent would get an average tax cut of $37,000, or 2.5 percent of their after-tax incomes.” Moreover, “By 2027, about 31 percent of middle-income households would pay an average of $1,150 more in taxes than under current law. Two-thirds would still get a tax cut, averaging the same $1,100 as in 2017. Among the top 1 percent, two-thirds would pay an average of $123,000 less, and one-third would pay an average of $62,000 more.”

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https://www.washingtonpost.com/blogs/right-turn/wp/2017/11/09/tax-chaos-trump-strikes-again/?utm_term=.d93cc010403b&wpisrc=nl_popns&wpmm=1