This last-ditch effort to repeal Obamacare is really all about tax cuts

Andrew Cummings
September 21, 2017

"Tax reform is the most important thing we can do right now to help American families get ahead, and as we move forward we want to make sure members have ample opportunity to talk through our framework, ask questions, and offer feedback", House Republican Conference spokesman Nate Hodson said in a statement.

Perhaps sensing that time is running out and looking to ratchet up the pressure on lawmakers, President Donald Trump has kicked off a series of tax reform speeches in Missouri and North Dakota with additional state events on the horizon.

Trump and his team argue their tax cuts, which independent think tanks have shown would largely favor the rich, are crucial to getting the USA economy out of the slow-moving 2% growth rate that has marked much of the economic expansion following the Great Recession of 2007-2009.

Congressional "Republicans" will roll out a tax reform proposal next Wednesday - their latest effort to salvage something out of what has been a disastrous year for the "governing" party in Washington, D.C.

In April, the White House put out a one-page blueprint of its tax plan that would have repealed the estate tax, eliminated the alternative-minimum tax and cut the top individual tax rate from 39.6 to 35 percent. Because many Democrats have largely staked out a position against reducing the highest individual tax rates, Trump's comments may lead to some compromises ultimately, he said. Cornyn sits on the Senate Finance Committee. "I think the wealthy will be pretty much where they are", he said. That analysis, he added, would not necessarily have to come from Congress's official scorekeepers on tax matters - the Joint Committee on Taxation, which can account for the macroeconomic effects of legislation in limited circumstances.

With a stable economy, low unemployment and low inflation, President Trump and Congress have an excellent opportunity to provide the country with much-needed reforms to the tax code. "They have to go higher, they'll go higher, frankly".

Still, Trump has vowed to cut taxes across the board, and the plans he has put forth have routinely been projected to reduce taxes for the poor and the middle class as a whole (though not by almost as much as the reduction for the rich).

An analysis by the Washington-based Tax Policy Center found that under the one-page tax outline that the White House released in April, nearly 40 percent of the tax cuts would have gone to the top 1 percent of earners - giving those households an average annual tax cut of $270,000. Only 15 percent of respondents said they expect their federal taxes to be lower next year. This is another tax break for the wealthy, not the middle class. With a nod toward the House Republicans' plan, he said: "Three is better than seven, and by the way two is better than three and one is better than two".

Other reports by iNewsToday