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House passes sweeping tax bill in huge victory for GOP


Reported

The House on Thursday passed legislation to overhaul the tax code, moving Republicans one step closer to achieving the top item on their legislative agenda.  The measure was approved by a vote of 227-205. No Democrats voted for the bill, while 13 Republicans broke ranks to oppose it.

Passing this bill is the single biggest thing we can do to grow the economy, to restore opportunity and help these middle-income families who are struggling, Speaker Paul Ryan (R-Wis.) said ahead of the vote.

Once the bill reached the magic number for passage, Republicans in the chamber erupted into applause. Democrats mockingly joined in, with some singing “na na na na, hey hey, goodbye,” like they did when the chamber passed an ObamaCare repeal bill earlier this year.

Besides Rep. Walter Jones (R-N.C.), who had concerns about the bill’s impact on the debt, all of the GOP no votes came from the states of New York, New Jersey and California.

Opposing the bill were New York Reps. Dan Donovan, John Faso, Pete Kingc, Elise Stefanik and Lee Zeldin; New Jersey Reps. Rodney Frelinghuysen , Leonard Lance , Frank LoBiondo  and Chris Smith, and California Reps. Darrell Issa , Tom McClintock 

Passage of the tax bill, which was unveiled just two weeks ago, was relatively drama-free compared to the GOP’s failed effort to repeal ObamaCare earlier this year.

The stakes are high for Republicans, who are feeling pressure to show that they can govern ahead of next year’s midterm elections. The Democratic wave in last week’s gubernatorial and state house elections in Virginia and New Jersey has only added to their anxiety.

GOP leaders are hoping to get legislation to President Trump’s desk by Christmas, an ambitious timeline given the obstacles that are mounting in the Senate.

Ahead of the House vote, Trump visited the Capitol to rally the House GOP conference in support of the bill. The president and his economic advisers have touted tax reform as the key to unlocking economic growth.

The measure approved Thursday would reduce the number of individual tax brackets, slash the corporate tax rate from 35 percent to 20 percent and eliminate a number of tax breaks and deductions.

The Joint Committee on Taxation (JCT) estimated that the bill would lower federal revenues by about $1.4 trillion over 10 years — a key finding, as the Republican budget only allows lawmakers to add $1.5 trillion to the debt during that time.

JCT said that all income groups would see a tax cut on average under the bill in 2019, but that some income groups, particularly those making $20,000 to $50,000, in some future years would see tax increases on average.

House Republicans who have labored for months on the tax bill celebrated the vote on Thursday, saying the GOP is on track to put more money in people’s pockets and spur investment in new jobs.

“For too long, this broken tax code has eroded America’s economic leadership around the world,” said House Ways and Means Committee Chairman Kevin Brady  (R-Texas), the chief architect of the legislation.

Democrats denounced the bill, saying it mostly benefit wealthy individuals and corporations while increasing taxes on some in the middle class.

Rep. John Yarmuth  (D-Ky.), the top Democrat on the House Budget Committee, brought a giant check to the House floor debate giving $500 billion to “The Wealthiest 1%” from “The American Taxpayers.” The fake check was signed, “Congressional Republicans.” 

“Hard-working families get pocket change,” Yarmuth said, holding up a handful of coins for emphasis. “But millions don’t even get that.”

The House bill would eliminate the deduction for state and local income and sales taxes and cap the property-tax deduction at $10,000, which could hurt people in high-tax states like New York, New Jersey and California.

“I just have too many constituents who are going to see their taxes go up or not see the benefit of the tax relief,” Zeldin said.

Senate Republicans have their own tax bill, which is currently being considered by the chamber’s tax-writing committee. The Senate legislation differs from the House’s in a number of ways. Unlike the House bill, the Senate bill fully repeals the state and local tax deduction, delays the corporate tax cut until 2019 and repeals ObamaCare’s individual mandate. The Senate’s bill also sunsets tax cuts for individuals after 2025, in order to comply with the “Byrd rule” that the measure can’t increase the deficit after 10 years if it is to pass with a simple majority.

No more than two Senate Republicans can vote against their bill if Democrats are united in opposition to it. Already, Sen. Ron Johnson  (R-Wis.) has said he doesn’t support either the House or the Senate bills because they provide more of a benefit to corporations than to other types of businesses. Sen. Susan Collins(R-Maine) has expressed concerns about including repeal of the individual mandate, but has not taken a hard stance yet on the measure.

Senate Republicans are aiming to vote on their tax plan during the week after the Thanksgiving holiday.

If the Senate passes its bill, it will set up a difficult conference negotiation between the two chambers over the final legislation.

– This story was updated at 2:15 p.m.

Tax Reform News


Senate to delay corporate tax cut, breaking with Trump and House

Senate Republicans plan to propose delaying a cut in the corporate tax rate until 2019, according to a GOP senator.

Sen. Bill Cassidy (R-La.) also said the individual mandate will not be repealed as part of the Senate tax overhaul proposal expected to be released Thursday.

The proposal breaks with President Trump’s preference that a corporate tax cut be put in place immediately. The House’s tax-reform legislation proposes lowering the corporate tax rate from 35 percent to 20 percent in 2018.

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Other big changes from the House version include adding back in a deduction for medical expenses and a full repeal of state and local tax deductions.

Republicans are seeking to get a bill to President Trump’s desk by Christmas.

A House panel could report its version out of committee on Thursday, and that measure could get a vote in the full chamber next week.

The GOP-written legislation is not likely to win over any Democrats, who blast it as a giveaway to the rich and object to cutbacks in breaks used by the middle class. Republicans say their standard deduction increase and tax rate cuts will make up the difference.

This story has been updated.

Blue Dog Democrats taking hard line on GOP tax bill

Blue Dog Democrats taking hard line on GOP tax bill | © Greg Nash

Blue Dog Democrats are lining up in firm opposition to the Republicans’ tax code overhaul, hoping that Tuesday’s election results will force GOP leaders to reach across the aisle for a bipartisan alternative.

The Blue Dogs had initially expressed an eagerness to join Republicans in the push for sweeping tax reform, which stands among the GOP’s top priorities. But the fiscally minded Democrats are quickly racing away from the GOP proposal, largely over projections the bill will hike taxes on millions of middle-class families and lead to a spike in deficit spending.

“Let me just be quite honest,” said Rep. David Scott, a Georgia Blue Dog. “There is no way I can support it.” 

Behind Rep. Kevin Brady (R-Texas), chairman of the Ways and Means Committee, the Republicans are pressing forward this week with the marathon markup of their partisan tax proposal. The Republicans, desperate for a major legislative victory following the embarrassing demise of ObamaCare repeal earlier in the year, are scrambling to move the tax bill through the House by Thanksgiving and to President Trump’s desk by Christmas.

But overhauling the nation’s convoluted tax structure is a colossal task — there are reasons Congress hasn’t enacted major tax reforms since the Reagan administration — and the Republicans are facing stiff headwinds from a long list of opponents, including small business groups, realtors, universities and deficit hawks, not to mention Democrats united against the plan.

The blowback has made even some Republicans skeptical they can enact the conservative tax overhaul that’s long been at the top of Speaker Paul Ryan’s (R-Wis.) wish list.

With that in mind, the Blue Dogs sense an opening for bipartisan compromise, and they’re feeling empowered by Tuesday’s elections, which saw lopsided Democratic victories in state and local contests across the country.

“It shows that we’ve got juice, and if they want to maintain their majority — or at least come close to that in the next cycle — they’re going to have to work with Democrats like us,” said Rep. Kurt Schrader, an Oregon Blue Dog.

“The mood of the country’s moving away from them. They’ve not shown that they can get anything done. People are tired of that; they want someone who’s going to work across the aisle, someone who can solve problems.”

Scott agreed, saying the elections should stand as “a wake-up call” for both parties.

“It’s a powerful lesson, and it puts a greater pep in the step of Democrats,” he added. “But we’ve got to be willing to reach across the aisle.”

The Blue Dogs have dwindled in numbers since a rout in 2010, and there are now fewer than 20 members.

And it’s not even clear that Republicans are ready to reach across the aisle simply based on Tuesday’s results. Just a handful of GOP members have come out against the tax bill thus far, and many Republicans expect an easy vote on the House floor next week.

And not all Democrats are so eager to work with the Republicans on the tax plan, which was written with no help from the minority party. Indeed, in the eyes of many Democrats, Tuesday’s election trouncing was largely a reflection of the Republicans’ failure to enact any of their big campaign promises, despite controlling all the levers of power in Washington.

With that in mind, many Democrats see political gold in uniting to deny the Republicans a victory on tax reform, whatever form it assumes.

“The Democratic Party is going to be united,” Rep. Steny Hoyer (Md.), the Democratic whip, told reporters Tuesday. “If we held the vote today, we would be united. And I expect overwhelming Democratic opposition to a bill that advantages greatly the wealthiest in America and leaves the middle class behind.”

It remains unclear if the Republicans will need any Democratic votes to pass a tax package, with only several members peeling off thus far. And although they’ve sprinkled notions of seeking bipartisanship, Republicans wrote the bill themselves and Democrats say they are jamming it through with no hearings.

And if the criticism coming from the Blue Dogs this week is any indication, the GOP bill needs plenty of work if it’s to win the Democrats’ support.

“It will increase the taxes on the middle class and give extraordinary tax cuts to the wealthiest people,” said Scott. “And you and I both know that it is the middle class, it is the lower-income [people] … that will spend the money.

“Giving these tax cuts to the wealthy, they hoard it.”

Echoing Scott, Rep. Sanford Bishop, another Georgia Blue Dog, ticked off a long list of deductions eliminated under the GOP plan he said Democrats can’t support. As one example, “it seems awfully ridiculous for a school teacher not to be able to deduct the pens and the pencils and the papers that she purchases for her children,” he said, “but a corporation can deduct all of the pens and supplies that they provide to their employees.”

The Blue Dogs also oppose new deficit spending proposed under the GOP’s plan — a figure that would reach $1.7 trillion over the next decade, the Congressional Budget Office estimated Wednesday.

“It’s complete hypocrisy that Republicans are ignoring that at this point,” Schrader said. “You’d have to close that hole dramatically.”

But Schrader also praised certain elements of the Republican plan, and predicted the GOP was going to need their help.

“They’re going to be desperate,” he added.

Here Are The 20 House Republicans Who Voted Against The GOP Budget


Reported by Photo of Robert Donachie Robert Donachie | Capitol Hill and Health Care Reporter | 12:38 PM 10/26/2017

Twenty Republican House members voted against the Senate budget proposal adopted Thursday morning and sent to President Donald Trump’s desk for approval.

House members voted to adopt the budget in a 216-212 vote, pushing the Republican tax reform plan past a key hurdle. The $4 trillion budget includes Senate budget reconciliation rules, which allow leadership to pass legislation with a simple majority, bypassing filibusters from Democrats altogether.

Here are the Republican representatives who voted “no.”

  • Justin Amash of Michigan
  • Ken Buck of Colorado
  • Dan Donovan of New York
  • John Duncan of Tennessee
  • John Faso of New York
  • Brian Fitzpatrick of Pennsylvania
  • Matt Gaetz of Florida
  • Lynn Jenkins of Kansas
  • Walter B. Jones of North Carolina
  • John Katko of New York
  • Pete King of New York
  • Leonard Lance of New Jersey
  • Frank Lobiondo of New Jersey
  • Tom MacArthur of New Jersey
  • Thomas Massie of Kentucky
  • Mark Sanford of South Carolina
  • Chris Smith of New Jersey
  • Elise Stefanik of New York
  • Claudia Tenney of New York
  • Lee Zeldin of New York

Under the new budget, Republicans now only need 50 yes votes to shepherd tax reform through the Senate, with Vice President Mike Pence acting as the tiebreaker. The party holds a slim 52-48 majority in the Senate.

The proposed budget would also allow Senate Republicans’ tax reform bill to add to the federal deficit over the next decade, as long as it does not exceed $1.5 trillion.

Economy adds 156K jobs in August


Reported

Economy adds 156K jobs in August

The economy added 156,000 jobs in August, below economists’ expectations, the Bureau of Labor Statistics reported on Friday.

The unemployment rate ticked up a tenth of a point, to 4.4 percent, while the labor force participation rate stayed steady at 62.9 percent.

Manufacturing added 36,000 jobs last month, while construction employment rose by 28,000. Roughly 20,000 jobs were added in health care.

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August’s numbers fall slightly short of previous months, and came in below economists’ predictions that the economy would add roughly 180,000 jobs. 

Meanwhile, employment gains for June and July were both revised down. July added 189,000 jobs, as opposed to the 209,000 originally reported, while June saw gains of 210,000, instead of 231,000. Wage growth also lagged at 3 cents for non-farm workers, compared to 9 cents in July.

House Ways and Means Committee Chairman Kevin Brady (R-Texas) said that “while today’s jobs report shows we have much more work to do to get wages growing, I welcome the continued job creation.“

Brady said he was pleased the economy grew by 3 percent of gross domestic product in the second quarter of 2017 and that his committee’s efforts to cut taxes could boost American hiring.

“Working together with President Trump and our colleagues in the House and Senate, I’m confident we can deliver pro-growth tax reform this year that improves the lives of all Americans,” Brady said.

House Minority Leader Nancy Pelosi (D-Calif.) said the report showed that “Americans still aren’t getting the bigger paychecks they deserve,” and slammed Republican efforts to repeal ObamaCare and cut taxes for the wealthy.

“Hard-working men and women across America are being left behind by a Republican White House and Congress that have no jobs plan and have failed to demonstrate a true commitment to working families,” Pelosi said.

Economy professor and New York Times columnist Justin Wolfers wrote on Twitter that the labor market might be “a tad weaker than we thought” in July.

“A tad. A tiny little tad. Really, it’s about the same” he said.

Lewis Alexander, chief U.S. economist at Nomura, said low productivity growth and other structural factors will hold down overall economic growth in a Friday research note.

—Updated at 10:55 a.m. 

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