The signature Republican legislature reveal was once more pushed back, with the most recent tax plan delay potentially preceding a massive political battle in both houses and across party lines.
The White House tax plan has long been pushed as a radical tax overhaul that would dramatically benefit all Americans, with tax reductions across the board and most of those gains going towards the middle-class.
The tax plan framework and leaked details, however, have painted a different picture. Several think-tanks and non-partisan tax policy analysts have said that most of the gains would go to top-earners and corporations.
One of the biggest overhauls of the plan that has been made public is the move to cut the corporate tax rate from 35% to 20%.
But the recent tax plan delay could prove fateful. If the bill is released on Thursday, then the Republicans in the Senate will have just 10 official legislative days to pass the legislation before the holiday.
With some high-profile members of the Senate coming out against details of the bill that have been leaked, not to mention news that negotiations regarding the bill have been tense, the inability of the GOP to move the bill through Congress in the next few weeks would leave the Trump administration without a single major legislative win in the first year since Donald Trump’s election victory.
The alternative to the major tax overhaul, which President Trump promised would close loopholes and help drive the U.S. economic engine, would be simple tax cuts.
At the moment, the tax-cut framework has about $1.5 trillion being lost in revenue over the next decade. That number bumps up to the limit the GOP will allow in any tax plan.
With so many potential conflicts contained within the framework and leaked details—from how to pay for the cuts to the potential reduction of the 401(k) retirement plans to harm coming to middle-class Americans in Democratic states who may see their taxes increase due to the elimination of state deductions—U.S. citizens may be denied the tax overhaul they were promised.
“GOP Braces for ‘All Hell’ to Break Loose When Tax Bill Finally Drops,” Bloomberg, November 1, 2017.