Subscribe Register Login
Tuesday, December 12, 2017, 10:23 a.m.

ADVERTISEMENT

Top Picks - Mobile App

Trump promises Americans 'huge tax cut' for Christmas

By The Associated Press

This article was originally published November 20, 2017 at 11:25 a.m. Updated November 20, 2017 at 6:12 p.m.

president-donald-trump-who-welcomed-ncaa-championship-teams-to-the-white-house-on-friday-earlier-took-to-twitter-to-lecture-democrats-on-the-power-of-lower-taxes

President Donald Trump, who welcomed NCAA championship teams to the White House on Friday, earlier took to Twitter to lecture Democrats on “the power of lower taxes.”


Use the form below to sign up for any or all of the Arkansas Democrat-Gazette's free newsletters:

















WASHINGTON — President Donald Trump on Monday promised a tax overhaul by Christmas, even as a nonpartisan tax analysis group said the Senate package would leave half of taxpayers facing higher levies by 2027.

Speaking before a Cabinet meeting, Trump said, "We're going to give the American people a huge tax cut for Christmas — hopefully that will be a great, big, beautiful Christmas present."

Trump spoke as the Tax Policy Center said that while all income groups would see tax reductions, on average, under the Senate bill in 2019, 9 percent of taxpayers would pay higher taxes that year than under current law. By 2027, that proportion would grow to 50 percent, largely because the legislation's personal tax cuts expire in 2026, which Republicans did to curb budget deficits the bill would create.

The policy center, a joint operation of the liberal-leaning Urban Institute and Brookings Institution, found that low-earners would generally get smaller tax breaks than higher-income people.

In 2019, those making less than $25,000 would get an average $50 tax reduction, or 0.3 percent of their after-tax income. Middle-income earners would get average cuts of $850, while people making at least $746,000 would get average cuts of $34,000, or 2.2 percent of income.

The center also said the Senate proposal would generate enough economic growth to produce additional revenue of $169 billion over a decade. That's far short of closing the near $1.5 trillion in red ink that Congress' nonpartisan Joint Committee on Taxation has estimated the bill would produce over that period.

The top Democrat on the Senate Finance panel, Sen. Ron Wyden of Oregon, said the study showed that "middle-class Americans will ultimately see a tax hike under Republicans' plan while corporate sponsors line their own pockets with multi-trillion-dollar giveaways."

Antonia Ferrier, spokeswoman for Senate Minority Leader Mitch McConnell, R-Ky., cited a separate study by the Tax Foundation. That conservative-leaning group has said the Senate bill would produce higher wages, nearly 1 million new jobs and enough economic growth to generate nearly $1.3 trillion in federal revenue.

"The Tax Foundation has laid out in unambiguous terms how critical the Senate tax bill is to hard-working families and job creators," Ferrier said.

The House approved a tax measure Thursday slicing corporate and personal taxes by $1.5 trillion over the coming decade. That evening, the Senate Finance Committee approved a similar plan, which like the House version devotes the bulk of its reductions to corporations and other businesses.

The Senate bill would repeal a requirement that Americans have health insurance or pay a fine. The provision is not in the version of the tax overhaul passed last week by the House.

Striking the health care provision might satisfy some GOP moderates who oppose repealing the language but would also blow a hole in the senators' tax cut plan, leaving them $338 billion short of their revenue goal over the next 10 years.

Trump did not directly address the issue Monday. He said that the administration would focus on health care, infrastructure and welfare "soon after taxes."

Trump's budget director, Mick Mulvaney, said Sunday that the White House is open to scrapping the provision, which would repeal a key component of the health care law enacted by President Barack Obama. Trump had pressed for the provision to be added to the bill, partly to show progress on the GOP goal of undoing the health care law following Congress' failed attempts to repeal it earlier this year.

"If it becomes an impediment to getting the best tax bill we can, then we're OK with taking it out," he added.

Moderate Republican Sen. Susan Collins of Maine, whose vote the White House needs, said Sunday the tax advantage that some middle-income consumers would reap under the tax bill could be wiped out by repealing the mandate under the Affordable Care Act.

Collins is among several GOP senators who say they've not decided how to vote on the bill. Republicans hold a slim 52-48 Senate majority.

Read Tuesday's Arkansas Democrat-Gazette for full details.

ADVERTISEMENT

Comments on: Trump promises Americans 'huge tax cut' for Christmas

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

Displaying 1 - 10 of 30 total comments

Jump to last page >>

RBear says... November 20, 2017 at 11:37 a.m.

Without a real strategy for dealing with this reform bill, Republicans have dropped back to hacking at options to come up with the required votes needed under reconciliation. Let's be clear about this. Those votes are razor thin anyway and the fact they must resort to this shows how unpopular the proposals are.
...
What makes matters worse is there is no strategy coming out of the White House to help move this forward. Trump doesn't have a clue and is creating more problems than helping Republicans to pass this legislation.
...
Without any legislative victories going into 2018, Republicans are VERY vulnerable at the mid-terms. Control of the Senate could flip and House majorities will fall leaving Trump and Republicans with no policy wins at a time when they should have gotten at least one. It will demonstrate to the American public how ineffective their agenda has been.

( | suggest removal )

gohogs17 says... November 20, 2017 at 1:30 p.m.

Obstructionism is why.

( | suggest removal )

RBear says... November 20, 2017 at 2:52 p.m.

Gohogs, what about ...?
...
Actually, if it’s obstructionism it’s within the same party. In reality, this is about putting people first which is what Trump can’t seem to do.

( | suggest removal )

TimberTopper says... November 20, 2017 at 3:15 p.m.

Hopefully there's enough moderate Republicans, to hold off this curse of a tax plan.

( | suggest removal )

Packman says... November 20, 2017 at 3:22 p.m.

Nice. Very nice. As good a Christmas present as the government can ever provide.
.
Hey Timber - Why do you so vehemently oppose letting taxpayers keep more of their hard earned money?

( | suggest removal )

gohogs17 says... November 20, 2017 at 3:34 p.m.

rbear, you're (almost) right on one point. Several republicans are against it and ALL Democrats are against it. How's that for bipartisanship?

( | suggest removal )

BirdDogsRock says... November 20, 2017 at 4:39 p.m.

A YUGE tax cut, paid for by our kids and grandkids. whoopee. go trump.

( | suggest removal )

PopulistMom says... November 20, 2017 at 5:05 p.m.

This is a Republican fraud. The tax cut is only huge for the multimillionaires. For low to middle income, it is small and quickly fades while the multimillionaires cuts stay. The "cut" also isn't really a cut for many because it takes away so many deductions. So if you have to put your spouse in the nursing home, you are going to be taxed on all that money. Also, before you think that you have a cut, look at what it costs you to get rid of the deduction for state and local taxes. This is all smoke and mirrors.

( | suggest removal )

gohogs17 says... November 20, 2017 at 5:44 p.m.

PM, from earlier posts you would stand to gain since your wealth would quality as a rich person (compared to middle-class). So I don't understand why you're objecting? Or is this really a ruse on your part?

( | suggest removal )

ARMNAR says... November 20, 2017 at 6:04 p.m.

And we all know how valid Cheetolini's promises are. LOL

( | suggest removal )

Click here to make a comment

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

ADVERTISEMENT

SHOPPING

loading...

ADVERTISEMENT

Top Picks - Mobile App
Arkansas Online