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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.
In the news
Wall Street Journal: “GOP Steams Ahead With Tax Overhaul”
Republicans are powering tax overhaul plans through Congress with remarkable speed, having departed town for a Thanksgiving recess after important victories in the Senate and House.
In late October, they had no public bill text for their rewrite of business and individual taxes and were mired in messy debates about limiting tax benefits for 401(k) plans. Now they have a House vote with a comfortable margin, a Senate plan that moved through committee and fresh momentum to finish before Christmas.
Arizona Daily Star. Lea Márquez Peterson: “Tax reform will help small businesses in Arizona”
The Tax Cuts and Jobs Act, which passed the House last week, will reduce the tax rate on small business income to the lowest level since World War II. It even provides a new, low tax rate of 9 percent for businesses earning less than $75,000 in income to help microbusiness startups that fuel innovation and job creation in communities across the country.
Many businesses throughout Southern Arizona fall within this income range. This bill establishes strong safeguards to distinguish between individual wage income and “pass-through” business income, so tax relief goes to the local job creators it was designed to help most.
This would have an immediate impact in Southern Arizona and assist our businesses in finding the cash flow to hire new employees and focus on revenue growth.
A specific provision of the act allows small employers to immediately write off the full cost of new equipment such as computers, vehicles and machinery to improve operations and enhance the skills of their workers. It also protects the ability to write off the interest on business loans that help them start or expand a business, hire workers and increase paychecks.
The Detroit News: “Our Editorial: Just get it done, Congress”
The biggest question in Washington over the next few weeks is whether Senate Republicans will hold up their end of the bargain in moving a tax reform package, or will the caucus fracture as it did with the failed Obamacare repeal.
The package passed by the House last week offers broad-based tax relief to both individuals and businesses and will make the tax code fairer and more competitive.
Certain improvements could make it better, and up its chances of passage. That should be the goal as Republicans negotiate with themselves. But the commitment to passage should be clearly stated from the start.
The GOP cannot withstand another major failure in carrying out the promises it made to the American people when they gave it full control of the governing process in Washington.