Published: Fri, October 27, 2017
World | By Paul Elliott

Harrington Breaks Down Tax Reform Prospects in Wake of Budget Passage

Harrington Breaks Down Tax Reform Prospects in Wake of Budget Passage

The House Budget Committee drafted a budget plan that cut $200 million in spending over 10 years and was deficit neutral.

"Not since Reagan's comprehensive tax reform in the 1980s, have we had such an historic opportunity to empower the American people and unleash the full potential of our economy".

Many Republican congressmen and women voted for the proposal simply to keep the process moving towards tax reform. There are deep divisions over which taxes or deductions to eliminate to offset some of the trillions of dollars in revenue lost to proposed steep tax cuts for corporations and some individuals. The tax bill would need just 50 votes and the support of the vice president to pass.

Gov. Mary Fallin and Republican and legislative leaders on Monday announced the tax package and raises for teachers at $3,000 a year and state employees at $1,000 a year.

Although the resolution only narrowly scraped by, it provided much-needed relief for Republicans after their failed attempts to repeal and replace Obamacare. Democratic lawmakers from left-leaning high-tax states were specifically upset about plans to curb the state and local tax deduction, which allows taxpayers to deduct their local taxes from their federal return. Under current law, tax filers who itemize their deductions can write off their property taxes, along with their state and local income taxes and general sales taxes, but the tax reform plan coming under consideration will eliminate that tax break.

Proctor said House Democrats have been compromising since the beginning of negotiations, when they wanted a 7 percent rate on all wells.

"Those willing to go along include several members of the landmark GOP class of 2010, a group of 63 mostly stalwart conservatives who were as critical of their own party's failure to contain the national debt as they were of Democrats", The Washington Posts' Mike DeBonis reports. Details of the tax plan are still being hammered out, but the general framework includes some $1.5 trillion in tax cuts. Some Democrats criticized the measure for ruthless spending cuts; others took the opposite approach, failing it for tackling the deficit.

"The House passes bills and usually the Senate that fumbles", the Wisconsin Republican told Fox News' "Fox & Friends" program.

"This notion that is theological that if you cut the corporate rate to 20 percent (from 35 percent) you're going have extraordinary economic growth, there's no evidence to support that", Neal said.

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