NATION
East Oregonian
Page 6A
Wednesday, December 20, 2017
GOP on the verge of huge tax overhaul
Associated Press
WASHINGTON — Jubilant
Republicans pushed on Tuesday
to the verge of the most sweeping
rewrite of the nation’s tax laws in
more than three decades, a deeply
unpopular bill they insist Amer-
icans will learn to love when they
see their paychecks in the new year.
President Donald Trump cheered
the lawmakers on, eager to claim
his first major legislative victory.
Perhaps emblematic of the
stumbles along the way, there was
one last hiccup. Speaker Paul Ryan,
who has worked years toward the
goal of revamping the tax code,
gleefully pounded the gavel on the
final House vote, but then it turned
out it wasn’t final after all.
The Senate still expected to pass
the legislation Tuesday night, but
the plan to send it on to Trump for
his signature had to be scrapped.
Democrats noted that three provi-
sions violated Senate rules and
had to be removed. So the massive
bill will be hauled back across the
Capitol for the House to re-vote on
Wednesday.
GOP House members roared
and applauded as their chamber
passed the $1.5 trillion package
largely along party lines, 227-203.
Ryan declared, “This was a promise
made. This is a promise kept,” as he
and other GOP leaders convened a
news conference moments later.
On a conference call with several
Oregon reporters on Tuesday after-
noon, Rep. Greg Walden of Oregon
said that many of the provisions
that constituents had been opposed
to in the House’s original bill had
been changed. He credited the more
than 2,000 Oregonian who called,
emailed and otherwise contacted
his office in the last month with
helping improve the final product.
“I think we came to a much
better place,” he said.
Oregonians, for example, were
particularly concerned with the
original bill’s provision doing away
with the ability to deduct state and
local income taxes, due to Oregon’s
high income taxes. The version
voted on Tuesday allows taxpayers
to deduct a combined $10,000 in
state and local income and property
taxes.
The newest version of the Tax
Cuts and Jobs Act also added back
the ability to deduct things like
adoptions, student loan interest,
AP Photo/J. Scott Applewhite
Speaker of the House Paul Ryan, R-Wis., joined at right by House Ways and Means Committee
Chairman Kevin Brady, R-Texas, meets reporters just after passing the Republican tax reform bill in
the House of Representatives on Tuesday. The vote capped a GOP sprint to deliver a major legislative
accomplishment to President Donald Trump after a year of congressional stumbles.
medical expenses and private
activity bonds.
However, Walden said under
the new bill, which doubles the
standard deduction and the child tax
credit, he expect fewer Oregonians
to still need to itemize deductions
to save money, which will simplify
the process of filing their federal
tax returns. He said currently about
70 percent of Oregon residents
take the standard deduction instead
of itemizing deductions, but he
expects that only about one in 10
Oregonians will in the future.
A reporters questioned him
about the bill’s impact on the federal
deficit, Walden said he believes tax
breaks for small businesses, farms,
middle class families, corporations
and others will help the economy
grow at fast enough rate to make
up for the cuts. He said there were
Oregon businesses that told him
they would move assets back from
overseas or create jobs due to some
of the provisions in the bill, but
declined to list specific examples.
He also touted provisions of the bill
that would help Oregon industries,
such as reduced excise taxes on
small craft brewers and wineries.
Despite the procedural hiccup
that means the House will have to
re-vote on Wednesday, the Senate
was still on track to approve the
package that will touch every Amer-
ican taxpayer and every corner
of the U.S. economy, providing
steep tax cuts for businesses and
the wealthy, and more modest
help for middle- and low-income
families. Despite Republican talk
of spending discipline, the bill will
push the huge national debt ever
higher.
After the delay for a second
House vote, the measure then heads
to Trump who is aching for a win
after 11 months of legislative fail-
ures and non-starters.
Congressional Republicans, who
faltered badly in trying to dismantle
Barack Obama’s Affordable Care
Act, see passage of the tax bill as
crucial to proving to Americans
they can govern — and imperative
for holding onto House and Senate
majorities in next year’s midterm
elections.
They have repeatedly argued
the bill will spur economic growth
as corporations, flush with cash,
increase wages and hire more
workers. But they acknowledge
they have work to do in convincing
everyday Americans. Many voters
in surveys see the legislation as a
boost to the wealthy, such as Trump
and his family, and a minor gain at
best for the middle class.
“I don’t think we’ve done a
good job messaging,” Walden said.
“Now, you’re able to look at the
final product.”
Ryan was positive, even insis-
tent. He declared, “Results are
what’s going to make this popular.”
Democrats called the bill a
giveaway to corporations and the
wealthy, with no likelihood that
business owners will use their gains
to hire more workers or raise wages.
And they mocked the Republicans’
contention that the bill will make
taxes so simple that millions can file
their returns “on a postcard” — an
idea repeated often by the president.
“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, and workers
would start to see changes in the
amount of taxes withheld from their
paychecks in February.
For now, Democrats are planning
to use the bill in their campaigns
next year. 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.
The bill would slash the corpo-
rate 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.
The legislation repeals an
important part of the 2010 health
care law — the requirement that all
Americans carry health insurance or
face a penalty — as the GOP looks
to unravel the law it failed to repeal
and replace this past summer. It
also allows oil drilling in the Arctic
National Wildlife Refuge.
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.
Disgruntled
Republican
lawmakers from high-tax New
York, New Jersey and California
receded into the background as the
tax train rolled. They oppose a new
$10,000 limit on the deduction for
state and local taxes.
GOP 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.”
The bill is projected to add $1.46
trillion to the nation’s debt over a
decade.
The bill would initially provide
tax cuts for Americans of all
incomes. But if the cuts for indi-
viduals expire, most Americans
— those making less than $75,000
— would see tax increases in 2027,
according to estimates.
———
East Oregonian reporter Jade
McDowell contributed to this
report.
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