Senate Republicans have begun negotiations with each other on a final tax reform plan. Majority Leader Mitch McConnell is targeting a full Senate vote this week. It may have already taken place.
Deal making and dickering will still produce something close to what was passed out of the Senate Finance Committee just before the Thanksgiving break. With a slim majority and a half-dozen Republican Senators not sure about the plan, the final push will be interesting.
Concerns of some Republicans in the Senate are the affordability of the plan, its likelihood of adding to the deficit and the provision in the Senate bill to do away with the Affordable Care Act’s individual mandate requiring all of us to have health insurance or be penalized.
Democrats continue to maintain the bill benefits big business and the rich.
Of most concern to most small businesses — like many of your businesses — is the pass-through business tax changes. Wisconsin Sen. Ron Johnson worries this is a huge hit to small business.
PIA National has the same concern. In its statement on tax reform, the association said:
“PIA National supports a clear and simple tax code and reducing individual and corporate income tax rates for small businesses. PIA National opposes tax provisions and regulations that impede small business growth.”
The pass-through business tax changes would appear to stifle that growth. Under the proposals taxes for pass-through businesses would be about 30% and a huge hit for many.
Senate Finance Committee Chairman Sen. Orrin Hatch of Utah and his committee have met with the president and believe they can come up with a package that will merge easily with the House plan once it reaches a conference committee.
To emphasize their concerns the Democrats point to a Congressional Budget Office (CBO) analysis of the tax plan. The nonpartisan body found those earning $100,000 a year or more will benefit greatly while those under that figure will be worse off.
• By 2019 those earning less than $30,000 will begin losing money
• By 2021 those earning less than $40,000 a year will begin losing money
• By 2027 those earning $75,000 and under will begin losing money
• Those with incomes of $100,000 or more will see no change or an actual tax cut
The CBO says the big reason the poor will take a hit is because of the repeal of the individual mandate. It found insurance premiums will rise and four million will lose health insurance by 2019 and 13 million will see it go away by 2027.
What do the people think? A Washington Post-ABC News poll taken October 29th through November 1st says the people aren’t exactly thrilled with the reforms.
Question: What kind of job do you think Trump is going on improving the federal tax system?
• Excellent/Good — 34%
Breaking it down between excellent, good, not so good, poor:
• Excellent — 10%
• Good — 24%
• Not so good/poor — 56%
Breaking down not so good and poor:
• Not so good — 22%
• Poor — 34%
• No opinion — 10%
Question: Given what you’ve heard about or read about it, do you support or oppose Trump’s tax plan? Do you feel that way strongly or only somewhat?
• Support — 33%
• Oppose — 50%
Question: Do you think Trump’s proposals on cutting taxes favor the rich, favor the middle class, favor the poor, or treat all people equally?
• Favor the rich — 60%
• Favor the middle class — 13%
• Favor the poor — 2%
• Treat all people equally — 17%
• No opinion — 7%
Question: Generally speaking do you think of yourself as a:
• Democrat — 31%
• Republican — 23%
• Independent — 38%
• Other — 6%
• No opinion — 2%
Source links: MSN — link 1, link 2, The Hill, The Washington Post, PIA National