House passes massive tax package; Senate to vote next

Gleeful Republicans on Tuesday muscled the most sweeping rewrite of the nation’s tax laws in more than three decades through the House.

Posted: Dec 19, 2017 3:01 PM

WASHINGTON (AP) — Gleeful Republicans on Tuesday muscled the most sweeping rewrite of the nation’s tax laws in more than three decades through the House.

House Speaker Paul Ryan dismissed criticism of the widely unpopular package and insisted “results are what’s going to make this popular.”

The vote, largely along party lines, was 227-203 and capped a GOP sprint to deliver a major legislative accomplishment to President Donald Trump after a year of congressional stumbles and non-starters.

Senate Majority Leader Mitch McConnell, R-Ky., said the Senate would vote Tuesday evening, sending the legislation to Trump for his signature.

The massive $1.5 trillion package would touch every American taxpayer and every corner of the U.S. economy, providing steep tax cuts for businesses and the wealthy, and more modest tax cuts for middle- and low-income families. It would push the national debt ever higher.

The standard deduction used by most families would be nearly doubled, to $24,000 for a married couple, while those who itemize would lose some deductions.

“We’re delivering a tax code that provides more jobs, fairer taxes and bigger paychecks to Americans across the country,” said Rep. Kevin Brady of Texas, Republican chairman of the tax-writing Ways and Means Committee. “Our local job creators will see the lowest rates in modern history so they can invest more in their workers and in their future.”

Democrats called the bill a giveaway to corporations and the wealthy, providing little if any tax help to the less-than-well-to-do and no likelihood that business owners will use their gains to hire more workers or raise wages.

And the Republicans’ contention that the bill will make taxes so simple that millions can file “on a postcard” — an idea repeated often by the president — was simply mocked.

“What happened to the postcard? We’re going to have to carry around a billboard for tax simplification,” declared Rep. Richard Neal of Massachusetts, the top Democrat on the Ways and Means Committee.

Tax cuts for corporations would be permanent while the cuts for individuals would expire in 2026 in order to comply with Senate budget rules. The tax cuts would take effect in January. Workers would start to see changes in the amount of taxes withheld from their paychecks in February.

During debate, decorum on the House floor was fleeting as two New Yorkers — a Democrat and a Republican — voiced their opinions on the bill. Rep. Joe Crowley, D-N.Y., yelled, “Hell no” in opposition to the bill. Rep. Tom Reed, R-N.Y., replied, “Hell yes!” The proceedings were interrupted several times by protesters shouting from the gallery.

The bill is unpopular among the public, and Democrats plan to campaign against it in next year’s congressional elections. Senate Democrats posted poll numbers on the bill on a video screen at their Tuesday luncheon.

“This bill will come back to haunt them, as Frankenstein did,” said House Democratic leader Nancy Pelosi.

Not so, said Ryan, who has worked for years on tax overhaul.

“When we get this done, when people see their withholding improving, when they see jobs occurring, when they see bigger paychecks, a fairer tax system, a simpler tax code, that’s what’s going to produce the results,” said Ryan, R-Wis.

The bill would slash the corporate income tax rate from 35 percent to 21 percent. The top tax rate for individuals would be lowered from 39.6 percent to 37 percent.

It scales back a popular deduction for state and local taxes, repeals a key tenet of Barack Obama’s Affordable Care Act and allows drilling in the Arctic National Wildlife Refuge.

Despite GOP talk of spending discipline, it is projected to add $1.46 trillion to the nation’s debt over a decade. GOP lawmakers say they expect a future Congress to continue the tax cuts so they won’t expire. If achieved, that would drive up deficits even further.

Republicans acknowledged they still have to convince many Americans of the benefits of their bill. Many voters in surveys see the legislation as a boost to the wealthy, such as Trump and his family, and only a minor gain for the middle class.

“I don’t think we’ve done a good job messaging,” said Rep. Greg Walden, R-Ore. “I don’t think we’ve gotten out there with specifics, and the final bill has only come together in the last week or so. Now, you’re able to look at the final product.”

The $1,000-per-child tax credit doubles to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes. Parents would have to provide children’s Social Security numbers to receive the child credit, a measure intended to deny the credit to people who are in the U.S. illegally.

The legislation also repeals an important part of the health care law — the requirement that all Americans carry health insurance or face a penalty — as the GOP looks to unravel a law it failed to repeal and replace this past summer.

The bill would initially provide tax cuts for Americans of all incomes. But if the tax cuts for individuals expire, most Americans — those making less than $75,000 — would see tax increases in 2027, according to congressional estimates.

Disgruntled Republican lawmakers from high-tax New York, New Jersey and California receded into the background as the tax train rolled. They oppose the new $10,000 cap on the deduction that millions use in connection with state and local income, property and sales taxes. The cap remains in the final bill.

The deduction is especially vital to residents of high-tax states.

Several defectors reaffirmed their “No” votes for the final bill on Tuesday. Rep. Peter King conveyed what people in his Long Island, New York, district were telling him about the tax bill: “Nothing good, especially from Republicans. ... It’s certainly unpopular in my district,” he said.

___

Associated Press writers Kevin Freking and Alan Fram contributed to this report.

___

Follow Stephen Ohlemacher on Twitter at http://twitter.com/stephenatap

Terre Haute
Clear
73° wxIcon
Hi: 76° Lo: 51°
Feels Like: 73°
Robinson
Scattered Clouds
72° wxIcon
Hi: 72° Lo: 50°
Feels Like: 72°
Indianapolis
Broken Clouds
71° wxIcon
Hi: 75° Lo: 52°
Feels Like: 71°
Rockville
Scattered Clouds
68° wxIcon
Hi: 77° Lo: 50°
Feels Like: 68°
Casey
Few Clouds
72° wxIcon
Hi: 74° Lo: 51°
Feels Like: 72°
Brazil
Clear
73° wxIcon
Hi: 74° Lo: 50°
Feels Like: 73°
Marshall
Clear
73° wxIcon
Hi: 75° Lo: 50°
Feels Like: 73°
Clear & Cool
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 184522

Reported Deaths: 7723
CountyConfirmedDeaths
Cook1072474897
Lake12089440
DuPage11558510
Kane9239298
Will8650339
Winnebago3688125
St. Clair3655156
McHenry2961114
Madison222273
Kankakee168668
Rock Island160531
Champaign154719
Unassigned1347197
Peoria134135
Kendall129123
Sangamon103733
DeKalb85029
Boone73523
Jackson65019
McLean57215
LaSalle56020
Macon48923
Adams4454
Randolph4357
Coles40119
Tazewell3888
Ogle3775
Clinton34917
Williamson3415
Stephenson3186
Whiteside31316
Union30321
Grundy2825
Monroe27813
Knox2621
Iroquois2497
Vermilion2152
Henry2071
Morgan2035
Cass20211
Jefferson19217
Warren1830
Lee1482
Montgomery1477
Bureau1442
Marion1380
Macoupin1373
Franklin1320
McDonough12815
Perry1261
Effingham1161
Christian1154
Jo Daviess1131
Saline1131
Douglas1022
Woodford983
Livingston922
Pulaski910
Logan860
Jersey701
Mercer700
Clark680
Shelby601
Fayette583
Washington580
White580
Bond572
Johnson570
Moultrie550
Jasper537
Wayne501
Menard480
Piatt480
Cumberland472
Carroll463
Gallatin450
Lawrence420
Mason420
Ford411
Alexander360
Hancock341
Massac340
Wabash320
De Witt300
Crawford290
Edgar260
Fulton260
Hamilton230
Marshall210
Greene200
Hardin170
Schuyler170
Clay140
Brown130
Edwards130
Pike130
Richland130
Scott110
Henderson90
Pope80
Putnam80
Calhoun70
Stark70
Out of IL00

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 68433

Reported Deaths: 2980
CountyConfirmedDeaths
Marion14863719
Lake7101271
Elkhart459777
Allen3635158
St. Joseph315479
Hamilton2513104
Cass17519
Hendricks1750105
Vanderburgh172612
Johnson1652118
Porter119539
Tippecanoe110311
Clark108145
Madison84765
LaPorte83829
Kosciusko81912
Howard81065
Bartholomew74347
Marshall74222
Floyd69444
Monroe68630
Delaware63852
Noble63728
Boone63546
Dubois62612
Hancock62337
Jackson5524
LaGrange54210
Warrick51630
Shelby51126
Grant49629
Vigo47410
Dearborn46528
Morgan42532
Henry36118
Clinton3573
White34710
Montgomery34321
Lawrence32827
Wayne3179
Decatur31432
Harrison29422
Miami2582
Scott25010
Daviess24619
Greene23934
Franklin22410
DeKalb2224
Putnam2228
Jennings21012
Jasper2082
Gibson2004
Steuben2003
Ripley1887
Perry17212
Starke1657
Orange16424
Wabash1613
Posey1580
Fayette1557
Jefferson1492
Whitley1486
Fulton1462
Carroll1452
Wells1342
Knox1310
Huntington1183
Washington1161
Spencer1143
Newton11010
Tipton1075
Randolph1034
Clay975
Jay820
Adams812
Rush794
Owen781
Sullivan761
Pulaski721
Brown701
Fountain632
Benton600
Blackford532
Ohio514
Pike460
Parke451
Switzerland430
Crawford420
Martin420
Vermillion380
Union320
Warren191
Unassigned0200