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Here is your daily round-up of news and analysis to keep you informed as tax reform works its way through Congress.
What’s happening today
The Senate tax bill markup begins in the Finance Committee.
In the news
The Senate's plan to rewrite the tax code would go much further than a competing House proposal toward making good on Republican promises to focus on the middle class, a new report shows.
Moderate-income people would consistently see the largest percentage declines in their tax bills, according to an analysis released late Saturday by the official, nonpartisan Joint Committee on Taxation.
Senate Finance Committee: “New Analysis: Senate Tax Bill Delivers Strong Economic Growth”
A new study by the Tax Foundation found the Senate Finance Committee’s proposal to overhaul the nation’s broken tax code would spur new job creation, boost wages for American workers, and expand the economy here at home. According to the analysis, the measure’s one-year delay on the corporate tax rate coupled with immediate expensing and shorter asset lives for structures would yield a significant jump in economic growth next year. Here is a look, by the numbers.
The Finance Committee Proposal:
- Increases the size of the economy by 3.7 percent
- Increases wages by 2.9 percent
- Creates nearly 1 million new jobs
- Increases average growth in the economy by nearly 0.4 percent relative to growth in the absence of the tax plan
- Provides more than $1.2 trillion of additional revenue for the federal government from positive economic effects
The Buffalo News: Rep. Chris Collins: “This is real tax reform”
Before House Republicans introduced tax reform legislation, Gov. Andrew M. Cuomo complained our bill would be nothing but a tax cut for the wealthy. Now that our comprehensive tax reform has been introduced, he is worried that multimillionaires are not getting enough relief.
This is the same governor who, throughout his entire time in office, has relied on a temporary millionaires tax year after year. He recently extended that same tax for another two years, subjecting New Yorkers to this job-killing tax for the entirety of his administration.
Cuomo’s hypocrisy is astounding.
The sad fact is that Andrew Cuomo is now catering to New York City multimillionaires, not looking out for hard-working Western New Yorkers. While Cuomo now claims to be fighting to protect the wealthy, I am looking out for my constituents.
Our Tax Cuts and Jobs Act will bring real relief to middle-income citizens compared to the current outdated, complicated system. Our bill focuses on middle America by lowering rates, collapsing tax brackets and doubling the standard deduction. Tax returns will be so simple they will fit on a postcard.
Washington Examiner: Dave Trabert: “As Congress debates tax reform, don't be deceived by tax myths about Kansas”
Opponents of federal income tax cuts besieging Congress with dire warnings about what happened in Kansas may not realize it, but they aren’t dealing in facts. Kansas does have budget problems, but that’s largely because legislators cut revenue and set new spending records. Every state provides the same basket of services, but those that do so at better prices can keep taxes lower. Kansas needed only to go from being morbidly inefficient to grossly inefficient to balance the budget, but legislators in both parties increased spending instead.
The Hill: Jesse Hathaway: “Brady's tax reform proposal could unleash America's economic engine”
Americans have suffered through years of the weakest economic rebound following a recession in modern history. Thankfully, to riff on a popular advertising jingle, “R-E-F-O-R-M” spells “relief.”
Beating the Christmas rush, congressional leaders have sent taxpayers a big gift, wrapped up in dollars and adorned with common sense: tax reform! On Nov. 2, U.S. Rep. Kevin Brady (R-Texas) introduced House Resolution 1, the Tax Cuts and Jobs Act, a bill that many have been waiting for all year.