Tag Archives: Tax reform

Trump’s tax cut plan would RAISE taxes for some in the middle class…

…from Bloomberg/Politics…

…..By 2027, almost 30 percent of individuals with incomes between $50,000 and $150,000 would see their taxes rise under the elements of a Republican framework for tax legislation released this week, according to an analysis released Friday by the Urban-Brookings Tax Policy Center.

The analysis came one day after White House economic adviser Gary Cohn said he couldn’t guarantee that every middle-class family would get a tax cut under the framework.

“You could find me someone in the country that their taxes may not go down,” Cohn told reporters Thursday at a White House press briefing.

The tax center’s analysis suggests it eventually could be many, many people.

That’s in part because of the framework’s call to end personal and dependent exemptions worth $1.6 trillion over a decade, according to the analysis. The exemption would be replaced with an expanded child credit that isn’t inflation-indexed. That means the number of taxpayers with a tax increase would rise over time.

The framework is a starting point for tax-writing committees to begin crafting legislation. Much remains undecided, including the amount by which Republicans plan to increase the child tax credit, which would mitigate the financial hit to some middle class families.

Raising taxes on the middle class could be a political obstacle for Republicans. Democrats are already highlighting the potential for just such a tax hike. Some GOP lawmakers are also worried about the prospect…..

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Trump meeting with lawmakers of both parties on Dreamers, Healthcare, Tax Reform and More…

His party Conservatives will have to wait outside for now as Donald Trump settles down to play politics to try work out deals for some wins…

It seems to have registede on him that he needs to negotiate with people from BOTH parties …..

President Trump has invited a bipartisan group of moderate House members to the White House on Wednesday to discuss a host of issues, including tax reform, infrastructure and health care, according to a congressional source familiar with the meeting.

The meeting may also include a discussion of the path forward for “DREAMers,” undocumented immigrants who came to the U.S. as children, the source said, asking for anonymity to discuss a meeting that had not been publicly announced. Trump last week canceled former president Obama’s policy of protecting DREAMers from deportation and set a six-month deadline for Congress to pass legislation to preserve their legal status.

As of Tuesday morning, four Republican and eight Democratic House members were confirmed for the meeting, including members of the bipartisan “Problem Solvers” caucus and the centrist Democrat Blue Dog Coalition, according to another congressional source familiar with the meeting.

The meeting appears to be another indication of Trump’s recent willingness to involve Democrats in deal-making. Last week,…

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Three Democratic senators joined President Donald Trump for a White House dinner Tuesday aimed at winning their support for an as-yet unreleased tax overhaul bill that would be written by Republican leaders.

Trump’s guests — Joe Manchin of West Virginia, Heidi Heitkamp of North Dakota and Joe Donnelly of Indiana — are the only three Democratic senators who haven’t signed on to a list of conditions for supporting any tax legislation: that it not add to the federal deficit, that it not increase the burden on the middle class and that it go through the regular order process in Congress.

In reaching out to them, Trump is amplifying a White House strategy that seems squarely aimed at Democrats…

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Ryan….We’ll try Tax Reform Next….

A try to Repeal the Healthcare Law appear’s gone for now….

Speaker Paul Ryan (R-Wis.) on Friday signaled a pivot to tax reform, one day after the Republican effort to repeal ObamaCare collapsed in the Senate.

Ryan urged Republicans not to give up on repealing and replacing the healthcare law, but his statement — coupled with comments from President Trump and Senate Majority Leader Mitch McConnell (R-Ky.) — suggest a shift for the GOP.

“I am disappointed and frustrated, but we should not give up. I encourage the Senate to continue working toward a real solution that keeps our promise,” Ryan said in a statement….

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The Republican led Congress has a LOT on its plate….

And is unlikely to get ALL of it done….

Healthcare…..

Tax Reform….

Budget….

Debt Ceiling….

Sanctions…

“Our current Senate calendar shows only 33 potential working days remaining before the end of the fiscal year,” a group of 10 Republican senators wrote on Friday in a letter to Senator Mitch McConnell of Kentucky, the majority leader, highlighting the deadline at the end of September. “This does not appear to give us enough time to adequately address the issues that demand immediate attention.”

The Republican Party is under intense pressure to achieve something of consequence in that limited time in order to legitimately claim that the first year of the Trump administration has been a success. So far, the ambitious agenda has stagnated without a signature achievement. President Trump’s unpredictability has only made matters more complicated.

The first order of business when lawmakers return remains reaching a swift conclusion to the debate over how to repeal and replace the Affordable Care Act, an ambition that has bedeviled Republicans since Mr. Trump entered the White House. The grappling over how to proceed has laid bare deep divisions within the party and stalled progress for the next items on the agenda, a federal budget deal and a tax overhaul. A vote on health care could drag on until mid-July or later depending on when Senate Republicans deliver a new bill to the Congressional Budget Office for scoring.

The straggling health bill has backed up other major priorities, setting the stage for a government shutdown or even a default in the fall if the debt ceiling is not raised in time…..

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President Donald Trump will back sweeping changes to U.S. financial regulations

Trump and the Republicans are looking to take care of their Go-Go Money people….

Regulations be Cut…..

Senator Elizabeth Warren?

They just gave ya the finger…..

And will screw us …The little people….

We just don’t know how far they cut back on regulating financial dealings…

“Everything is going to be looked at,” the official told reporters at the White House.

“We really never have dealt with too big to fail. We haven’t really dealt with taxpayer bailouts. We haven’t really dealt with” mortgage giants Fannie Mae and Freddie Mac, he said.

Overhauling the Dodd-Frank law would undo one of former President Barack Obama’s signature legislative initiatives. Trump has taken up the Republican argument that the law has discouraged lending and prevented new firms from being formed.

The Dodd-Frank executive order directs the Treasury secretary to meet with all the top regulators, organized as the Financial Stability Oversight Council, and tell the president “within a relatively short period of time” what needs to be done to the law, according to the official.

The order will include a statement on “core principles” to guide the Treasury secretary on what the administration wants to achieve and how it views financial regulations.

He cited the need to fix the so-called Volcker rule, named after former Federal Reserve Chairman Paul Volcker, which bans banks from trading on their own accounts.

He also implicitly took aim at the CFPB, a brainchild of Warren that has become a major target for Republicans.

“Some of the rules may have even been unconstitutional in creating new agencies that don’t actually protect consumers,” the official said. He declined to say whether the president will remove CFPB Director Richard Cordray, but he said additional financial regulatory nominations would be coming “relatively soon.”

Although congressional Republicans generally back changes to Dodd-Frank, it’s unclear whether Senate Republicans would be on board with major revisions. But the executive order is likely to provide clearer direction to lawmakers beginning work on reforms, who previously had little indication of what changes might please the administration….

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The Republicans continue to screw the people who vote for them…

The Hill on something we pointed to last week…

The GOPer’s are trying protect rich people’s estates….

Republicans have once again shown their disdain for the interests of all but a few of their constituents by voting to end the estate tax. What is worse, if they are successful in the effort now or in the future, the Republican Party will have done economic damage to essentially everyone who voted them into office.

On April 16, the House of Representatives voted 240-179 to repeal the estate tax. While there is little expectation that the bill will survive the Senate, and it is certain it would be vetoed by the president if it did, Forbes News Service reports that “anti-death tax advocates say it sets the stage for possible repeal in 2017.”

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What to expect from those people you sent to Congress up to November’s elections…

…from the Hill….

There’s six months to go before the elections, and Congress could get a lot done between now and then.

But don’t bet on it.

The following is a list of items on Congress’s plate.

Likely to become law

• Government funding

With the government shutdown still fresh in their minds, House GOP leaders won’t repeat the mistakes of 2013. This week, the House will launch their appropriations efforts, pushing three bills to fund Congress, the Departments of Commerce and Justice, and military construction projects and Veterans Affairs.

It is doubtful that Republicans will succeed in advancing all 12 appropriations bills before the Oct. 1 deadline, as some are hoping. But December’s bipartisan budget deal between Sen. Patty Murray (D-Wash.) and Paul Ryan (R-Wis.) has established a top-line figure that should ease the process, even amid grumbling from some members on the far left and far right.

• Women’s History Museum

After years of lobbying efforts by supporters on and off of Capitol Hill, legislation promoting a national women’s history museum around The Mall in Washington finally has legs this year. The bill has already passed unanimously through a pair of House committees, and House Majority Leader Eric Cantor (R-Va.) has vowed to bring the measure to the floor, where it will likely pass easily. The Senate is expected to follow suit.

• Tax extenders

There’s growing pressure on Capitol Hill to renew the tax extenders package, a long list of tax breaks for businesses and individuals alike, including multibillion-dollar credits for renewable fuel technology and research and development.

Those tax breaks expired at the end of last year, but the Senate Finance Committee passed its $85 billion renewal bill earlier this month, and House Ways and Means Chairman Dave Camp (R-Mich.) has scheduled a Tuesday hearing on the issue, focused heavily on his efforts to make several of those tax breaks permanent.

The tax extenders package is seen as the one final chance to pass major tax legislation this Congress, although there’s a growing sense that such action is more likely after the elections than before.

Unlikely to become law

• Immigration reform

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The Banks are NOT happy with the Republican Tax idea….

Rep. Dave Camp has sent out a blueprint for the GOP on possible tax reform…

The plan has tax INCREASES for Wall Street…..

That is from a Republican….

The pushback?

Fundraising dry up for now…..

Private equity and investment firms in New York are telling key Republican players in D.C. that commitments for big-dollar fundraising have been “canceled for the foreseeable future,” according to one GOP lobbyist with knowledge of the conversations.

Lobbyists for Bank of America, Goldman Sachs and JPMorgan and others are meeting privately with lawmakers to explain what the bank tax would cost and how it would function.

Big banks want to turn Republicans against the bank tax. The situation puts the party at risk of seeing a reliable source of campaign cash dry up right in the middle of a critical election year.

The tax proposal itself is not even expected to get a vote in the House, since it’s so unpopular among most Republicans. That Wall Street would react so ferociously to a dead-end bill is a reminder of how hard a powerful player is willing to fight to protect its interests in Washington.

Multiple GOP lawmakers and financial services lobbyists described the Wall Street backlash to POLITICO.

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Grover Norquist thinks Defunding Obamacare is ‘not wise’

Well….Well…..

Even this anti-tax guy KNOWS some in his party are barking up the wrong tree on the Affordable Healthcare Law ….

And look….

He thinks that in the end the Republicans will try get some sort of Immigration Reform….

What’s up with this guy….Is he losing his Conservative?

Norquist: GOP must ask for ‘reasonable things’ in fiscal showdown with Obama  

Grover Norquist says Republicans must ask for “reasonable things” in this fall’s fiscal showdown with President Obama.

In an interview with The Hill, the head of Americans for Tax Reform (ATR) criticized the strategy of some Republicans on defunding ObamaCare as “not wise.” Norquist noted the Senate and White House remain in Democratic hands and that President Obama is not going to agree to gut the landmark achievement of his first term.

However, Norquist believes a one-year delay of ObamaCare could be ultimately accepted by the president because some vulnerable Democrats on Capitol Hill are worried that implementation problems of the healthcare overhaul will hamper their reelection bids. He also said the eradication of the Independent Payment Advisory Board, a controversial part of ObamaCare, is possible in the coming months.

Other highlights of the interview include:

* Norquist predicts immigration reform will pass before the 2014 elections. He claims that the GOP has moved significantly away from its anti-immigration reform stance last year. The ATR president has praised the Senate for its passage of immigration reform earlier this year.

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Open Thread for August 6, 2013….Congress goes on Summer Recess….Budget awaiting them in Sept…

Wonk Wire points out what awaits your Congress Person when they return to the Nation’s Capital come September…..

Use This Recess to Prepare for Budget Chaos

Congress has begun its annual August recess, with plans to return in early September. Stan Collender looks at the “somehow-still-increasingly-intractable budget politics” that they will face when they return and prepares for “budget bedlam this fall and beyond.”

“1. Debt Ceiling. I’m listing this first only because it’s not something that that has to be dealt with immediately. Yes, the debt ceiling will have to be raised at some point, but the latest word from the Treasury is that the “extraordinary measures” it can take to delay the day of reckoning will last into November.”

“2. Government Shutdown. It’s important to note that I’m not labeling this ‘fiscal 2014 appropriations.[‘ The truth is that none of the individual appropriations bills — the legislation that supposed to be signed into law before the fiscal year begins — have any real chance of being enacted by October 1. That means we’re talking about a continuing resolution…or a shutdown… concluding that a shutdown is more likely this year than it was last year actually is quite easy.”

“3. Sequester. Let me start by correcting a common misperception: If there is a sequester for fiscal 2014, it won’t happen on October 1 or any time this fall. Sequestration takes place 15 days after the end of the session of Congress… at the very least, the possibility of the across-the-board reductions that could happen in January will have an impact on every budget negotiation. For many, the sequester spending levels will be the default position and the minimum they will accept.”

“4. The Grand Bargain. Can we all please stop talking about a grand budget bargain this fall as if it is anything but a fantasy?”

“5. Tax Reform. See #4 above.”

…from Wonk Wire…..

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Tax Reform (And Bush Tax Cuts) will be back by the end of the year….

Yup…..

By the years end the Congress, who writes the tax code, must work out several issues on how much American’s can and cannot claim on their taxes…

In simple terms …..

Actually LETTING the Bush tax cuts expire would go a long ways towards shoring up the budget deficit …

But that has a scant chance of happening since things have gotten to where the President is actually defining those cuts….

This morning I heard Democratic Rep Jim Clyburn (SC) being asked about the deduction on second homes….

I’d guess THAT’s a non-starter also since it would directly affect the Housing Markets….

The President is continuing his quest to raise taxes on the rich, something that is against the very heart and soul of the Republican party….

I don’t see THAT coming to pass either….

Where does that leave us?

Nowhere really……

Look for a lot of theater as usual…

And very little change from the way things are right now…

Congress isn’t know for it balls on anything….

This certainly won’t change that perception….

“I think the specter of a fiscal contraction that’s north of 3 percent of GDP should get even the most dysfunctional of Congresses’ attention,” said Jared Bernstein, former economic adviser to Vice President Biden.

Even so, practically no one in Washington believes an agreement will come together until an expected lame duck session after the November election upon which all political eyes are focused. And the results of that campaign will also have a big impact on the end-of-year tax debate.

Ken Kies, a top GOP tax lobbyist, predicted that Obama would be able to keep that promise if he gets another four years in the Oval Office, even if Republicans still control at least part of Congress.

“It’s going to be a key issue in the campaign, so whoever wins is going to say: ‘OK, the American people have spoken,’ ” Kies told The Hill. “If Obama gets reelected, what are they going to say?”

But Kies added that Republicans will probably carry the day if their presumed nominee, Mitt Romney, unseats Obama — even if that means having to confirm the Bush rates retroactively and through a budget maneuver known as reconciliation.

In either scenario, families making under $250,000 could easily see a similar tax bill next year…..

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Note…

As the piece points out the heavy lifting for this tax stuff will be AFTER the November election….

Whoever wins the Election WILL have a say in the outcome…

In addition EVERY House member is up for election setting up a fluid dynamic when the issue gets settled in that there WILL be House members voting the tax measure that will be losing their seat’s and jobs….

This is gonna be interesting come the late fall….

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Stop Coddling the Super-Rich….WARREN E. BUFFETT…..

n this May 2, 2011 photo, billionaire investor Warren Buffett, Chairman and CEO of Berkshire Hathaway, gestures in Omaha, Neb. Berkshire Hathaway Inc. releases quarterly financial results Friday, May, 6, after the markets close. | AP Photo

(AP Photo from Politico)

From the NY Times….

OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.

While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.

These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places……

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Corporate Taxes……The upcoming political Fight….

Withe the Republican focused on cutting social programs…..The Democrats and the White House may have found a way to move the budget discussions back to reality and better ground for the Democrats next year in once again going after the rich…..

While us ‘regular’ middle class people have seen any financial gain in OUR everyday budget evaporate as the gas pump….

The feeling out there is that Corporations are hold on to tons of capital that don’t pay taxes on….

Indeed behind the fact that GE didn’t pay a dime of taxes last year and has over BILLION DOLLAR’S in tax credits is the fact that Republican’s STILL want to keep…and even lower the Bush tax cuts with the knowledge that most rich people pay very little if no taxes at all…….

Listen….I don’t want to lose my mortgage deduction…..

It it only fair that I get something back against the fact that the Bank will make double the face valve on the mortgage loan amount….

But….

I’d sure like to see those corporations that are paying NO taxes pony up….

Between them kicking in and the the over $250,000 or even $500,000 crowd paying AT LEAST what pay by percentage ….

I figure my taxes would be cut in half!

I’m not gonna hold my breath on this one though…..

 

At a time when the two parties can find little common ground legislatively, strategists on both sides tell POLITICO they hope to advance their jobs agenda by finding a way to lower corporate tax rates.

“This would send a reassuring signal to the economy, and is something both parties should support in theory,” a senior administration official said, predicting “a numbers game” in which companies and industries ferociously litigate the fine points.

Treasury Secretary Timothy Geithner plans to ignite the debate by unveiling a white paper that advocates lowering the top corporate tax rate from the current 35 percent to less than 30 percent and as low as 26 percent, according to aides. The proposal is likely to fall between 26 percent and 28 percent.

To pay for that, the proposal will call for closing loopholes and slicing exemptions. The two main ones are a tax deduction for domestic manufacturing and accelerated depreciation for capital equipment.

Aides say Geithner will personally dive into the negotiations. House Speaker John Boehner also sees this as a ripe area for bipartisan cooperation. And House Budget Committee Chairman Paul Ryan included corporate tax reform in his budget, which has been adopted as the GOP’s fiscal blueprint.

Aides predict that corporate tax reform is unlikely to pass as a stand-alone bill but could serve as a sweetener as part of a deal on a 2012 budget or a longer-term plan for reducing the deficit. There is unlikely to be enough time to include it in haggling over an increase in the debt ceiling, which will be needed this summer.

Agreeing on how to rework corporate taxes will be tough, and many aides remain privately pessimistic……

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White House says no to a Oversea’s Corperate Tax Holiday….

Does that mean that I can’t ask for a Tax Holiday also?

Really…

I mean these companies are asking for a cut in taxes while the country is in a hunt for revenue….

They don’t quit do they?


The Obama administration on Wednesday reiterated its opposition to allowing corporations to bring overseas profits back to the United States at a reduced tax rate, arguing this should only be considered as part of a broader overhaul of the corporate tax code.

In a blog entry posted Wednesday, Michael Mundaca, the assistant Treasury secretary for tax policy, says the push for a so-called repatriation holiday would take attention away from the bigger goal of corporate tax reform. He also cast doubt on the idea that a repatriation holiday sparks economic growth.

“Comprehensive reform can be done,” Mundaca writes. “We should not allow ourselves to be distracted from that goal.”

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