By Harrison Lavelle | USA
Not long ago, the Senate GOP released its 400+ page Tax Bill to the public eye. 71Republic dived in to tell you what the Tax Plan means for you and your family. Let’s start with some background, with little to no major legislative accomplishments for Sen. McConnell (R-KY) to hand to President Trump (R) in recent months, and little to nothing but stagnation in the House, the Senate bucked the system and announced its own tax plan. Let’s dive into the bill and what it means for you in terms of legislation.
The main hallmark of the GOP Plan is its massive cuts for tax-payers across the board and a set maximum rate of 38.5% for citizens making more than $1 million dollars a year which is 1% lower than the 39% rate in the House Bill. However many Leading Liberal Economists feud with the Conservative Senators arguing that the Tax Plan’s shrinking of brackets from 7 to 3 will lead to the exposure of new loopholes in the tax system allowing the rich to profit and the income gap to grow, however at the same time, many politicians, even a Democratic Senator, Sherrod Brown (D-OH), are citing the plans possible success through trickle down economics. The President himself addressed Democrats in the Senate today with, “(the) rich people get hurt in this bill.”
“the rich people get hurt in this bill” – Donald J. Trump (R-NY), 45th President
According to Business Insider, the spokesperson for Sen. Brown stated that the Senator agreed with portions of the plan and would consider supporting a bi-partisan form of it, or at least some aspects of it. The debate on the maximum rate and across the board cuts boils down to whether or not you believe in Trickle-Down economics or not, so we’ll leave that up to you. Besides the lower cap for high-income citizens, the plan also includes a much less popular addition, the cancellation of mortgage/in-property tax deductions for state residents. For states in the Northeast, such as NJ, NY, CT, MA, RI, PA, etc… the loss of property tax reductions would be devastating. Due to the fact that property taxes in those states range from $13,000 to $25,000/year depending on property size and/or cost. GOP lawmakers tried to back up the change but it came to little avail. The plan also delays corporate tax cuts which ultimately lead to an inadvertent and unnecessary tangent from Trump’s tax agenda. The plan should promote strong values of capitalism and a mix of supply-side and trickle down economics for the American People, but in its current form, it simply falls short on so many quotas that it does not hit that goal.
Currently, the plan is on the Senate floor debate and reform before its potential passing. As you know the GOP holds a 52-48 Majority in the Senate, and it needs 51 to pass the bill (or 50 with the VP) if the three liberal Republican senators (Collins, McCain, Murkowski) vote against the bill then it will fail the Senate. The Senate is set to vote on the controversial new tax bill in the coming weeks, will it fare better than the House Tax Bill? Only time will tell. If Tax Reform doesn’t come, It could have bad repercussions for the GOP in the Senate in 2018. The GOP needs a win, and McConnell believes this is what the party is looking for. Only time will tell the fate of this new bill.