Senate poised for crucial vote related to tax reform measure

[G-Man]

[QUOTE]WASHINGTON (Reuters) - President Donald Trump’s drive to overhaul the U.S. tax code headed for a pivotal moment on Thursday, with Senate Republicans poised to approve a budget measure that would help them pass tax legislation without Democratic support.

The Senate and the House of Representatives must agree on a fiscal year 2018 budget resolution for Republicans to meet their goal of enacting a tax bill and sending it to Trump for his signature by the end of this year.

The budget resolution contains a legislative tool called reconciliation, which would enable Republicans, who control the 100-seat Senate by a 52-48 margin, to move tax legislation through the Senate on a simple majority vote. Otherwise, tax reform would need 60 votes and would likely fail.

Although Republican Senator Rand Paul, a fiscal hawk, has threatened to oppose the budget resolution, Senate Republicans appeared to have enough support to approve it with at least 50 votes, along with a possible tie-breaking vote from Vice President Mike Pence.

“We feel good about where we are,” Republican Senator John Thune, a member of the Senate leadership, said. “The level of resolve is pretty high.”

After failing to approve Trump-backed legislation to overturn Obamacare, Senate Republicans are under intense pressure to succeed on tax reform, beginning with the budget measure, which would allow tax legislation to add up to $1.5 trillion to the federal deficit over the next decade to pay for tax cuts.[/QUOTE]
[URL="http://www.reuters.com/article/us-usa-tax/senate-poised-for-crucial-vote-related-to-tax-reform-measure-idUSKBN1CO0ET?utm_source=Facebook&utm_medium=Social"]Reuters.[/URL]

[elix]

Republicans are the party of fiscal responsibility until they're in power then all that goes out the window. I hope two more principled establishment Repubs come out against this bullshit and stop this from just becoming the new normal method of doing business in the Senate.

Also this simple-minded idea that tax cuts = economic growth is childishly basic and incorrect. When Reagan reduced the corporate tax rate from 70% to 50%, the impact in financial terms was considerable and it created real change in economic conditions. Reducing the tax to 20% or 15% now, at the substantially lower rate it's starting at already, has a substantially smaller effect on the economy and will not create the same kind of growth Reagan oversaw. (Also the GOP blocked out the fact that Reagan later raised taxes.)

Middle-class Americans making more than $50,000 a year can expect their taxes to go up under the proposed Republican tax plan while the top get a nice fat cut. Trump also wants to kill the estate tax even though it only applies to people worth more than $5.5 million and only when they die.

Well, this will make American great again for certain people. The ones who can already afford to live comfortably for the rest of their lives many times over.

[Zero-Point]

[QUOTE=elixwhitetail;52796121]Republicans are the party of fiscal responsibility until they're in power then all that goes out the window. I hope two more principled establishment Repubs come out against this bullshit and stop this from just becoming the new normal method of do business in the Senate.

Also this simple-minded idea that tax cuts = economic growth is childishly basic and incorrect. When Reagan reduced the corporate tax rate from 70% to 50%, the impact in financial terms was considerable and it created real change in economic conditions. Reducing the tax to 20% or 15% now, at the substantially lower rate it's starting at already, has a substantially smaller effect on the economy and will not create the same kind of growth Reagan oversaw. (Also the GOP blocked out the fact that Reagan later raised taxes.)

Middle-class Americans making more than $50,000 a year can expect their taxes to go up under the proposed Republican tax plan while the top get a nice fat cut. Trump also wants to kill the estate tax even though it only applies to people worth more than $5.5 million and only when they die.

Well, this will make American great again for certain people. The ones who can already afford to live comfortably for the rest of their lives many times over.[/QUOTE]

So when do we get to eat the rich?

[Download]

[QUOTE=elixwhitetail;52796121]Republicans are the party of fiscal responsibility until they're in power then all that goes out the window. I hope two more principled establishment Repubs come out against this bullshit and stop this from just becoming the new normal method of do business in the Senate.

Also this simple-minded idea that tax cuts = economic growth is childishly basic and incorrect. When Reagan reduced the corporate tax rate from 70% to 50%, the impact in financial terms was considerable and it created real change in economic conditions. Reducing the tax to 20% or 15% now, at the substantially lower rate it's starting at already, has a substantially smaller effect on the economy and will not create the same kind of growth Reagan oversaw. (Also the GOP blocked out the fact that Reagan later raised taxes.)

Middle-class Americans making more than $50,000 a year can expect their taxes to go up under the proposed Republican tax plan while the top get a nice fat cut. Trump also wants to kill the estate tax even though it only applies to people worth more than $5.5 million and only when they die.

Well, this will make American great again for certain people. The ones who can already afford to live comfortably for the rest of their lives many times over.[/QUOTE]

The US actually has one of the highest corporate tax rates in the world. You're confusing lowering corporate tax and lowering the highest personal tax brackets.

[elix]

[QUOTE=download;52796324]The US actually has one of the highest corporate tax rates in the world. You're confusing lowering corporate tax and lowering the highest personal tax brackets.[/QUOTE]
Unless I'm mistaken, the Republican plan is to include a corporate tax reduction as well as the personal tax bracket tweaks. If that's not the case and the bracket reductions are responsible for all the gifts to the 1% this time around, well, the corporate tax rate is probably next on the list.

Also, America has one of the highest statutory corporate tax rates but the effective rate, after loopholes and deductions, is right in line with developed nations.

[Download]

[QUOTE=elixwhitetail;52796889]
Also, America has one of the highest statutory corporate tax rates but the effective rate, after loopholes and deductions, is right in line with developed nations.[/QUOTE]

Only large companies with huge teams of accountants can take advantage of the various tax minimisation methods.

[Thelurker1234]

[QUOTE=elixwhitetail;52796889]
Also, America has one of the highest statutory corporate tax rates but the effective rate, after loopholes and deductions, is right in line with developed nations.[/QUOTE]

Of g20 members the average tax rate of the US is still top 3. At least according to the CBO. It's not sky-high but its not insignificant.

[QUOTE=download;52799562]Only large companies with huge teams of accountants can take advantage of the various tax minimisation methods.[/QUOTE]
Maybe, but it's gonna be pretty hard to prove that this is substantial. Quite a lot of "loopholes" aren't little exploits in the law, but are explicit deductions, exceptions for what is taxable income, and credits put in by politicians for some nice, distortionary brownie points.

Private individuals make use of them all the time when they write off their mortgage, healthcare, education, etc..

There's also different types of corporations that fall under different sets of rules