What do you want to know about the tax plans?

Elias Hubbard
December 5, 2017

In what would be the largest change to USA tax laws since the 1980s, Republicans want to add $1.4 trillion over 10 years to the $20 trillion national debt to finance changes that they say would further boost an already growing economy. Bob Corker of Tennessee was the only Republican to vote against the bill, citing deficit concerns.

The almost 500-page bill, passed 51 to 49, cuts the corporate tax rate from 35% to 20%.

No Democrats are expected to vote for the tax bill.

Trump told reporters at the White House before a trip to New York City Saturday that he would consider setting the corporate tax rate at 22 percent, compared to a 20 percent rate that he has pushed for with House and Senate Republicans during the fall.

The chambers still have key differences to nail down. The House passed a measure to do so earlier this year, but a similar bill failed in the Senate. When asked if DACA would be addressed this year, he said the administration wants to get taxes done first, and PBS reports that Short said that there is no commitment on the substance of any DACA deal.

"However, the change to the state and local tax (SALT) deduction would reduce disposable income for many taxpayers, likely outweighing the positive effect of lower federal rates on consumption in many communities and states". Instead, the individual AMT would be adjusted and the corporate AMT would be maintained as is, lobbyists said.

In the two letters, sent to the House and Senate respectively, the USA bishops outlined six moral principles that they believe the bill must consider: care for the poor, the strengthening of families, maintaining the progressivity of the tax code, raising adequate revenue for the common good, avoiding cuts to poverty programs to finance tax reform, and incentivizing charitable giving and development.

Republican senators will now move to reconcile their legislation with the House's proposal, passed in mid-November. The bill also repeals the Obamacare individual mandate, which could leave up to 13 million Americans without health insurance by 2027, according to the Congressional Budget Office.

"While I support a number of the provisions included in this legislation and continue to believe it would have been fairly easy to alter the bill in a way that would have been more fiscally sound without harming the pro-growth policies, unfortunately, it is clear that the caucus is in a different place", he said.

Other reports by Click Lancashire

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