Here's The Latest On The GOP Tax Bill As The Senate Starts Debate

Much like the Obamacare repeal and replace effort earlier this year, the past couple of weeks have been an invariable roller coaster ride for GOP representatives as Congressional leaders have tried to form some level of consensus within a fractured party with competing interests.   This week will undoubtedly be no different.

In light of that, we've taken a look at some of the key differences between the Senate and House tax bills as they currently stand.  As of now the biggest difference is the treatment of the State and Local Tax (SALT) deduction.  While the Senate has called for a full repeal of the SALT deduction, House members have drawn a hard line, even though almost all political "hard lines" become flexible under the right circumstances, demanding at least $10,000 worth of property tax deductions be allowed.  Per Bloomberg:

The House and Senate are on a collision course over one of the most prized individual breaks in the tax code.

 

The Senate Finance Committee will start debating late Monday afternoon the 247-page tax proposal released last week by Chairman Orrin Hatch. As of now, the “conceptual” mark has some significant differences with the tax bill the House Ways and Means Committee approved last week -- chief among them the Senate’s call for repealing the state and local tax deduction entirely.

 

Ways and Means Chairman Kevin Brady took a hard-line approach during a “Fox News Sunday” interview, saying the House won’t accept a tax bill that eliminates the deduction entirely. The House bill retains the deduction for property taxes up to $10,000.

 

House Speaker Paul Ryan has promised that the differences will be settled in a conference between the two chambers, but some House lawmakers are concerned they’ll just be forced into a take-it-or-leave-it vote for a bill that looks much closer to the Senate version.

 

“There are going to be things that we absolutely object to” in the bill that comes out of conference, said Scott Perry, a Pennsylvania Republican and member of the conservative Freedom Caucus. “But we’re going to have to look at it in its totality and say, ‘Yeah I don’t like it,’ but you have a binary choice” to vote for or against the tax bill, Perry said.

Other divisive issues between the House and Senate could include the top individual income tax rate, the estate tax, the effective start date of a corporate rate and levies for companies that bring offshore profits back to the U.S.

McConnell

Of course, in the end, a final bill is more likely to resemble the Senate proposal simply because that chamber has a slim majority and can only afford to lose two votes. The House has a wider majority and can afford up to 22 defections.

Meanwhile, another complicating factor is that the tax plans are each proceeding on parallel tracks with the Senate beginning debate on their version of a tax bill before the House has even passed their version.

House GOP members may not want to take a politically painful vote when the bill is on the House floor if Senate tax writers have taken some provisions off the table.

 

Still, House Majority Leader Kevin McCarthy says the two-track approach is needed to get a bill completed before 2018.

 

“The Senate’s near simultaneous action shows how seriously this Congress is to get tax reform done this year,” McCarthy said in an emailed statement. He confirmed that the House plans to vote on the tax bill this week.

With that, here are a couple more things to watch this week courtesy of Bloomberg:

  • The Senate Finance Committee will begin debating the tax bill at 3 p.m. Monday, in a markup that is expected to stretch out for several days and could feature votes on numerous amendments.

 

  • Potential amendment related to the tax treatment of carried interest. The break for investment managers is likely to change in the Senate, even though the chamber’s current tax proposal doesn’t call for it, according to Pat Toomey of Pennsylvania and Chuck Grassley of Iowa.

 

  • On the House side, Majority Whip Steve Scalise said that GOP leaders would work to win over rank-and-file Republicans Monday evening. More changes to the House bill could still come before the planned floor vote this week. If GOP leaders need to make last-minute changes to guarantee enough Republican “yes” votes, they could stick in a manager’s amendment in the Rules Committee, which is scheduled to consider the bill on Wednesday.

Of course, the most important consideration for this new week of tax debate is precisely where to set the over/under on how many times the tax bill will be declared officially dead by the mainstream media before being brought back to life with new amendments.

Comments

dasein211 Giant Meteor Mon, 11/13/2017 - 09:26 Permalink

He’s a moron. Tax cuts are for the rich. We get what, an extra couple hundred a year but the rich save a couple million? Please. If you can’t see that Trump and Clinton and Bush and Obama are no different then you are all hopeless. They all suck Saudi and Israel cocks to no end. We’ll never be rid of them if the left hand and the right hand both have guns pointed at our heads. I thought this was fight club, as in fight the power not fight the left and right.

In reply to by Giant Meteor

Jack McGriff dasein211 Mon, 11/13/2017 - 11:12 Permalink

And having obsessive class envy over others who might get to keep more of what they EARNED and blindly supporting a progressive income tax as a way to feed your jealousy is why you always be a willing and ignorant wage slave who will NEVER become financially independent.  Meanwhile, there is NO TAX CUT in for wage earners in the highest tax bracket you fucking fool!  39.6% is here to stay, and it even goes UP!  But your complete lack of understanding is to be expected from a fool like you who doesn't understand the difference between income and wealth, the latter of which you will certainly never have.   The top 20% of wage earners pay 95% of ALL taxes!  Since you have no skin in the game and pay a trifling amount of income taxes at best, the only thing you are good for is voting democrat.  And that's all by design.  The weak minded fool like you is always easy to control.

In reply to by dasein211

shamus001 Sonder Mon, 11/13/2017 - 11:52 Permalink

WTF!! REALLY ZEROHEDGE? I'M READING THIS ARTICLE, AND SOME $HIT ADVERTISEMENT BLOCKS THE ENTIRE SCREEN AND STAYS IN MY FACE FOR 12 SECONDS BEFORE I CAN CLOSE IT OUT?I don't even know what it was that was being sold, some chick in a bra PISSING ME OFF! If anything I would boycott that item, but I can't recall what it was because I was BLINDED BY ANNOYANCE!

In reply to by Sonder

junction LawsofPhysics Mon, 11/13/2017 - 09:25 Permalink

The Republican Party is playing "Good Cop, Bad Cop" on SALT deductions. As ZeroHedge often says, it won't end well.  The government is out of money, the only way to protect the "carried interest" tax dodge and lower the tax load on billionaires is to tax the hell out of the dwindling middle class.  Over 30 years ago, Reagan pushed through taxes on social security pensions, which jammed the middle class.  The problem for the Republicans now is, voters know their game plan and will accept no change in the status quo re: SALT deductions.  Lucky the Republicans have turncoat Democrats Pelosi and Feinstein in their corner, two reptiles who are always ready to sell out the Democratic Party.

In reply to by LawsofPhysics

takeaction LawsofPhysics Mon, 11/13/2017 - 10:22 Permalink

I was thinking about writing a book called...FOOLED....Our Government of deception..."I have questions that nobody will answer..."It would be a long Journey on my opinion on many topics....False FlagsEndless warsMass KillingsThe Russia NarrativePolitical Murders (Hits)Getting rich in PoliticsRon and Rand Paul (They are like God & Jesus in the cesspool of hell)  I don't care what your belief is...you get the picture. These 2 people seem like the only ones that truely care about you and I.The topics could go on and on......what a fun book.  And when finished...I would get Seth'd.I would write it in Memory of Seth Rich & John Ashe.....  

In reply to by LawsofPhysics

Sonder Mon, 11/13/2017 - 09:10 Permalink

I have to say it's becoming increasingly difficult to care about the lip service of a bunch of sniveling bureaucrats in suits trying to sell their masters interests to an ill-informed public. Coming to this website has always been a sort of masochistic ritual, a sick fascination with the utterly cynical reality of the world we live in. I guess I'm going on a bit of a tangent but honestly just look at these cretins, there's nothing behind those eyes, they're empty suits. 

Dode415 Mon, 11/13/2017 - 09:14 Permalink

Current effective average corporate tax rate is already somewhere around 20% so if they reduce the headline from 35% to 20% without getting rid of all the deductions which corps currently use (neither of the current bills appear to get rid of any of these) then the effective tax rate for corps will get down to the low single digits and probably negative for some (IBM anybody) - guess who picks up the tab for the federal govt ehen corps are effectively paying nothing ! If either of these passes the reps are toast in 18

earleflorida Mon, 11/13/2017 - 09:20 Permalink

here's a hint; just leave the fucking thing alone and go home--- this way congress can't create anymoar angst for the plebs!i'm starting to wonder if we should rename the con`gress, the house od proctologist? 

HuskerGirl Mon, 11/13/2017 - 09:18 Permalink

Just simplify the damn thing.  Cut out all deductions and reduce the rates accordingly.  We'd all be better off with a single rate a large personal exemption and no deductions.  But we know that the most important thing for a bureaucrat is the ability to use the tax code for social engineering.We not only need a better tax code, we need fewer brainless socialists bureaucrats controlling government. 

Giant Meteor HuskerGirl Mon, 11/13/2017 - 09:33 Permalink

"... we need fewer brainless socialists bureaucrats controlling government "I'm afraid it is much to late for that ..What is needed is the massive correction that should have been allowed to occur. Arrests, trials, then the executions , before the reconciliation. There is going to be no relief given, no tax reform, health care reform, money printing reform, war reform .. nada, zip, zilch ...  Plan on more dog and pony shows, and third rate kabuki .. and of course the "gigged" economy .. 

In reply to by HuskerGirl

PitBullsRule Mon, 11/13/2017 - 09:35 Permalink

If Trump gets rid of the State and Local Taxes, then we'll work for money that we have to give to the state for taxes, and then we'll pay a federal tax on the same money that we paid to the state.Thats double taxation, we'll being paying taxes on money we earned just to pay taxes.I knew this guy was going to screw us, but I didn't know how bad it was going to be.  When they start double taxing you, they can raise those up until in no longer pays to work, so people just quit.That is why there are third world countries, because it doesn't pay to work.Thats what he means by "Make America Great Again", tax people so hard they won't work.And thats why they call you guys, "Deplorables"! 

Money_for_Nothing Mon, 11/13/2017 - 09:42 Permalink

The only thing they need to do is send out $500 checks to any taxpayers with joint returns and $250 with single returns.
Jiggle some number that makes this work out. Checks arrive before Thanksgiving. $50 billion a year. $75 billion tops. Less than a trillion over ten years. I don't understand why someone hasn't offered up this bill already. Bunch of tone deaf politicians?

MuffDiver69 Mon, 11/13/2017 - 09:46 Permalink

The last part is all that matters. It’s a bunch of,talk and filler for Fake News. The only thing matters is what the ending is, so I’m taking a pass on the soap opera..

redmudhooch Mon, 11/13/2017 - 09:51 Permalink

Told you so. Do not trust Steve Bannon:Bannon appeals to US Jewish community to join war on GOP establishmenthttp://www.foxnews.com/politics/2017/11/12/bannon-appeals-to-us-jewish-… Bannon appealed to the Zionist Organization of America to "work as partners" in his crusade against GOP leaders he blames for blocking Trump's agenda. Bannon delivered the fiery address at the organization's annual awards dinner in New York, with several current and former Trump staffers in attendance."That's how you get the Iran deal," he continued. "That's how we still allow the American government to finance people that have blood on their hands of innocent Jewish civilians.""President Trump needs our back," he declared. "We're a nation at war. This war is only going to be won if we bind together and work as partners."Bannon: GOP establishment is dangerous for IsraelBannon calls on Jewish conservatives to help topple Republican establishment, blames leadership for Iran deal.http://www.israelnationalnews.com/News/News.aspx/237998Bannon is considered a staunch supporter of Israel, and pushed for the Trump administration to honor the president’s 2016 campaign promise to relocate the US embassy to Jerusalem.

Quivering Lip Mon, 11/13/2017 - 10:37 Permalink

Anyone who thinks this is a Blue state Red state thing doesn't know what they're talking about. Here are some of those blue states tax rates. Blue states like Idaho7.3% Nebraska 6.84% South Carolina 7% Georgia 6% Iowa 8.9% North Carolina 5.75% Missouri 6% Ohio 5% Kentucky and Tennessee 6% Arkansas 6.9% Utah 5%. There are more, but I'm pretty sure those BLUE states might get a little pissed about being taxed on taxes paid.I also thought Republicans were for a smaller federal government. Instead it would appear that anyone who votes for a real tax increase for the upper middle-class so corporations can pay the smallest percentage in federal taxes in US history is just a corporate whore. 

redmudhooch Mon, 11/13/2017 - 10:24 Permalink

‘I’m Proud to Be a Christian Zionist’: Steve Bannon Gets Standing O from Leading Jewish Organizationhttp://www.breitbart.com/big-government/2017/11/13/im-proud-to-be-a-chr… Zionist Organization of America’s annual awards gala gave Breitbart News Executive Chairman Stephen K. Bannon three standing ovations Sunday after the former White House chief strategist delivered a fiery speech praising President Donald Trump’s leadership in the Middle East and calling on America’s Jewish community “to bind together and work as partners” in his war against the GOP establishment.“It is time for us to act,” Bannon said, addressing the Jewish community and other American supporters of Israel, “and I believe the only way to act is not through moderation. I am not a moderate, I’m a fighter. And that’s why I’m proud to stand with the state of Israel. That’s why I’m proud to be a Christian Zionist. That is why I’m proud to be a partner of one of the greatest nations on earth and the foundation of the Judeo-Christian West.”Calling Trump “the strongest supporter of Israel, since Ronald Reagan,” Bannon recalled President Trump’s inauguration speech:“On the 20th of January, 2017 … President Trump said we will reinforce old alliances and form new ones to unite the civilized world against radical terrorism, which we will eradicate completely from the face of the earth.”

aliens is here Mon, 11/13/2017 - 10:33 Permalink

McConnell and Ryan was useless under Obama and now they have proven they are even more useless under Trump. It's no wonder they don't want Trump to win because he'll make they work for the money.

Herdee Mon, 11/13/2017 - 10:39 Permalink

Whatever these crooks can do to screw the little guy. Fact is, they put up a steady political look of stability but deep down they are insolvent and are being hit by a massive wane of baby-boomers. Ten of thousands a day now for oensions. It is sucking money out of a corrupt world hegemony war machine run by these gangsters.

There Mon, 11/13/2017 - 11:20 Permalink

This legislation has the wrong title.  It's not tax reform it's TAX DEFORM.Recall that Hillary was the one who was goning to steal.

freedom1798 Mon, 11/13/2017 - 12:30 Permalink

Here is a simple plan:   Put a maximum of $50,000 per year on all pensions, public and private sectors.  That's still a fair amount of money for not working.

surf@jm Mon, 11/13/2017 - 16:38 Permalink

LOL!......removing the state and local tax deduction will absolutely cream the taxpayers in high taxation blue states......It would be just more impetus to pick up stakes and run..........