The House Ways and Means Committee on Monday, released a fuller Version of its part of the GOP's Bill, full of Trump’s (R) Legislative Priorities, kicking off what is expected to be a Showdown over the Tax Provisions in the Measure. The 389-Page Measure, which is the Centerpiece of the GOP’s Megabill, is expected to draw Howls from within the House GOP Conference. In One of the most long-awaited Details, the Legislation increases the State and Local Tax (SALT) Deduction Cap from $10,000 to $30,000 for Single and Joint Filers, which would Phase-Down as Income Grows, a Figure that is Lower than the Proposal Floated by Key Stakeholders.
Shortly before the Release of the Tax, a Group of Republican Moderates from High-Tax Blue States, told Leadership they would be Content with a SALT Deduction Cap of $62,000 for Single Filers and $124,000 for Joint Filers. The SALT Deduction Cap, which was First instituted in the 2017 Trump Tax Cuts, has emerged as One of the most Contentious Debates pertaining to the Trump Agenda Bill. Moderate Republicans from High-Tax Blue States, including New York, New Jersey, and California, have been pushing to Increase the Cap, which Deficit Hawks are Opposed to. Moderate Republicans are expected to Push Back on the Proposed Caps in the coming days.
The Release of the Text, which had been highly anticipated since Friday night, when the Panel unveiled a Partial Version of the Measure, comes as the Committee prepares to Debate and Advance the Measure in a Meeting Scheduled to begin on Tuesday at 2:30 p.m. That Meeting is Expected to run through the Night.
Beyond Increasing the SALT Deduction Cap, the Bill includes several Tax-related Promises Trump made on the Campaign Trail, including getting rid of Taxes on Tips and Overtime, Provisions that are set to Expire at the End of 2028. The Bill also Proposes Exempting Car Loan Interest Payments through 2028, with Several Exceptions.
The Bill also makes the 2017 Income Tax Rate Reductions Permanent, which was a Priority for many Republicans. The 2017 Tax Law specifies Marginal Tax Rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. While there had been consideration of Letting the Top Tax Rate Expire, which would mean that the Highest Tax Bracket for Regular Income would Iincrease to 39.6%, this Provision was Left-Out. Conservative Tax Groups had Railed against that Possibility.
The House Ways and Means Committee Released Text for its Portion of the Trump Agenda Bill as Speaker Mike Johnson (R-LA. 4th District) looks to keep the Conference on His Ambitious Timeline of Approving the Entire Package by Memorial Day. Despite the Lingering Disagreements, Johnson was Confident that the Conference would remain On-Track. “Yes, I think we’re going to meet it,” He told Reporters when asked if He is still Cconfident in His Memorial Day Deadline.
Among other Provisions, the Bill Increases the Passthrough Deduction to 23% from 20%. Passthroughs are Businesses Designated as Partnerships, Sole Proprietorships, LLCs and S-Corporations that Pass their Tax Liability on Directly to their Owners. The Vast Majority of U.S. Businesses Fall into this General Category.
The National Association of Manufacturers (NAM) welcomed the Proposed Increase. “For the 96% of manufacturers that are organized as pass-through businesses, this bill is more than policy—it’s a path to growth,” NAM CEO Jay Timmons said in a Statement. “It means the ability to buy equipment, hire workers, increase pay, and expand operations with greater certainty and confidence."
Critics of the GOP Tax Framework say that it’s another example of “Trickle Down Economics,” meaning Tax Advantages for Businesses, Investors, and Managers, the Benefits of which May or May Not “Trickle Down” to Workers and Consumers.
“So far this costly bill appears to double down on trickle down, with huge tax cuts that will further enrich the rich and not much for the rest of us,” Amy Hanauer, director of the Institute on Taxation and Economic Policy, said in a statement in response to Friday’s version of the bill.
Additionally, the Bill includes a Temporary Expansion of the Child Tax Credit (CTC), bumping it up to $2,500 through 2028. It also Increases the Debt Ceiling by $4 trillion.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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