Republican-led panel in the U.S. House of Representatives voted Thursday to make the individual tax cuts from President Donald Trump's 2017 tax overhaul permanent, a move seen by some as a bid to help GOP candidates in the November 6 congressional elections.
According to the House Democratic leader Nancy Pelosi, Tax Reform 2.0 is a scam that would not only add more to the country's deficit but would also make the richest even richer.
Regardless if you are a Republican, Democrat or Independent, you should be deeply concerned about the rage and lawlessness of President Trump.
It would also eliminate the maximum age for some retirement account contributions and let new businesses write off more start-up costs.
House Ways and Means Committee Chairman Kevin Brady, the 2.0 package's main author, plans to unveil draft language for three bills early in the week and put it to a committee-level vote on September 13, with a full House vote following by Oct 1.
Democrats decried the legislation, saying it would mainly benefit the wealthy, expand the deficit and lead to cuts in the Social Security and Medicare programs for the elderly. The Committee for a Responsible Federal Budget estimates that the legislation would cost $4 trillion over the next 20 years, or $5 trillion with interest.More news: Neville responds to Klopp blast: Liverpool can't play 3 games a week
FILE PHOTO: Chairman of the House Ways and Means Committee Kevin Brady (R-TX) holds up a sample tax form as he speaks during a media briefing after the House Republican conference on Capitol Hill in Washington, U.S., April 17, 2018. (Trump administration officials have said the economic gains are largely due to the massive tax overhaul signed into law in December, the largest since President Ronald Reagan was in office).
"Regardless of the merits of the House GOP plan, we view it as a political move ahead of the midterm elections that has no chance of passing Congress in the short term", the investment firm Keefe, Bruyette & Woods said in a Monday note to clients.
"Passage is not automatic", he added.
House Republicans said the legislation on the tax cuts would add to economic momentum and create 1.5 million new jobs in the long run, citing numbers from the nonpartisan Tax Foundation. Prospects for the measure, which Democrats unanimously oppose, are dim in the Senate - and it may not come to a vote by the full House before the November elections. Deficit hawks as well as Democratic lawmakers - who were unanimous in opposing the tax legislation past year - are asking how the Republicans intend to pay for the extended tax cuts. This has put Republican lawmakers in high-tax states like New York, New Jersey, California, Illinois and Minnesota in a hard position because they would either support a provision that would put their states in a vulnerable place or oppose a bill that is backed by their own party.