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View Full Version : If corporate tax reform fails, US companies will bolt from America, House Speaker Paul Ryan sa




Zippyjuan
11-15-2017, 02:54 PM
https://www.cnbc.com/2017/11/15/paul-ryan-if-corporate-tax-reform-fails-companies-will-bolt-from-us.html

They want to get quick votes on their tax bills before the public gets a chance to learn what is actually in them. The other deadline coming up is the special election in Alabama in December where the Republican candidate Moore faces sexual harassment charges. If he loses, it reduces the Republican margin in the Senate to only one vote meaning that if Democrats vote as a bloc, only one Republican could vote no on an issue and still get it passed. If two vote no, it will fail.


U.S. companies won't tolerate failure on corporate tax reform, House Speaker Paul Ryan said Wednesday.

"We've already seen a rash of inversions," the Wisconsin Republican said on CNBC, referring to the practice of U.S. companies merging with foreign firms in lower tax countries, and then redomiciling there.

"[If] we don't get this done, those companies sitting back and waiting for us to fix this tax code are going to leave," he predicted on "Squawk Box."

Ryan's comments came as the House and Senate work on separate tax overhaul plans in hopes of passing a bill for President Donald Trump to sign by year-end.

More at link.

Zippyjuan
11-15-2017, 02:57 PM
https://www.cnbc.com/2017/11/15/orrin-hatch-changes-senate-republican-tax-reform-plan.html


The Senate just tweaked its tax plan. Here's what changed

Sen. Orrin Hatch, R-Utah, revises the Senate Republican tax plan.

Changes to the Senate GOP's tax plan include a proposal to reduce many taxes on individuals only temporarily but permanently chop the corporate rate.

The tweaks by Senate Finance Committee Chairman Orrin Hatch, R-Utah, on Tuesday largely move to make the bill comply with Senate budget rules.

Even before the revisions were finalized, the panel's ranking member Sen. Ron Wyden, D-Ore., slammed the plan for disproportionately helping businesses and wealthy taxpayers. He contended this week that the GOP abandoned middle-class tax relief for "a massive handout to multinational corporations."

Hatch's changes that were unveiled Tuesday night aim to decrease the burden on middle-class taxpayers and win over two skeptical GOP senators by proposing to increase the child tax credit to $2,000 from $1,000 per child. A previous version of the plan called for a $1,650 credit.

Major analyses so far have estimated that versions of the Senate bill would cut the tax burden on most Americans. However, millions of middle-income people could end up seeing a tax increase, due to the plan's elimination of provisions like state and local tax deductions.

Here are the notable changes in Hatch's revision:

The amended bill would slightly cut individual tax rates for multiple brackets and set seven rates: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 38.5 percent. Those changes, as well as the near doubling of the standard deduction, would expire after 2025. The reduced corporate tax rate, down to 20 percent from 35 percent, would be permanent.

The child tax credit would rise from $1,000 to $2,000. It would start to phase out at $500,000 in household income. The change would also sunset after 2025.

As expected, the plan would effectively repeal the Obamacare individual mandate, which requires most Americans to have health insurance or pay a penalty. Senators say doing so will save more than $300 billion to give Republicans more budget flexibility. The Congressional Budget Office has estimated that it will lead to 13 million more people uninsured by 2027 and increase average Obamacare premiums.

The Senate plan would expand proposed tax breaks for pass-through businesses. Those would also expire after 2025.

It also gets rid of a provision that would have taxed company stock options when they vest. Silicon Valley had opposed that measure, saying it would suffocate entrepreneurial efforts.

The Senate is marking up, or debating and amending, its tax bill this week. Senate Republicans hope to pass the plan during the week after Thanksgiving.

The House aims to approve its separate tax bill on Thursday. The chambers would then have to hash out a joint plan.

Zippyjuan
11-15-2017, 03:02 PM
http://www.cnn.com/2017/11/15/politics/individual-mandate-tax-reform/index.html


By combining Obamacare with taxes, GOP goes for it all

Washington (CNN)Despite nearly a year's worth of heartache, Republicans can't quit trying to repeal Obamacare.

Senate Republicans plan to include a repeal of the individual mandate -- a key piece of the Affordable Care Act -- in their tax reform efforts. It's a move that dramatically raises the stakes for President Donald Trump and congressional Republicans, who are still looking for a single, substantial legislative accomplishment to deliver to the American people this year.

For Republicans, the benefits are tempting. If they can pull it off, it's a two-for-one victory. They will have overhauled the US tax code and taken a bite out of former President Barack Obama's signature legislative achievement, even if it falls short of the "root and branch" health care repeal many had vowed to see through.
But if they fail, Republicans will enter the midterm election year with their message muddled, without a victory on tax reform, and having spent a year's worth of time trying and repeatedly failing to dismantle Obamacare with nothing to show for it but bad headlines.


A key driver of the Senate Republicans' decision Tuesday was simple arithmetic: They need the money. As it stands now, their tax plan increases the deficit outside the 10-year window and that is against Senate rules if lawmakers want to use a process that allows them to pass the tax bill with just a simple majority.