Key Republican signals House-Senate clash on Trump tax-cuts plan

Lester Mason
November 13, 2017

Senate Majority Leader Mitch McConnell, R-Ky., also acknowledged on Friday in a New York Times interview that he had erred when he said that "nobody in the middle class is going to get a tax increase". Like the House version, the Senate's proposal would cut the corporate tax rate to 20 percent from 35 percent, but the Senate plan would delay implementation until 2019.

Campbell criticized the cuts (in the House bill) or elimination (Senate bill) of state and local tax deductions, as well as the House proposal to limit interest deductions to $500,000 principal. The Senate's version kills the write-off entirely.

Thus Senate Democratic Leader Chuck Schumer described the Senate measure as a vehicle "grounded in tax cuts for big corporations and the very rich".

President Donald Trump's top economic adviser, Gary Cohn, said on "Sunday Morning Futures" that he expects the legislation to go to a conference committee that reconciles differences between the House and Senate versions before returning a report to both chambers for final passage. In order to minimize the impact of those cuts on the deficit, the proposals would eliminate many other popular tax breaks, sparking uproar from industry groups most affected by the changes. Econometric research - including those published by Mr. Hassett before joining the administration - does not indicate these business tax cuts are large enough to further boost investment and growth enough to generate such gains.

"In the global economy that we have, and in the knowledge economy that we have, we would want to create more advantages for the leading minds for developing our future faculty, for developing our future researchers, scientists and thought leaders of tomorrow, not try to make it more hard", Strietzel said. The average corporate tax rate in the Organization for Economic Co-operation and Development is 24.1 percent. More than 200 proposed amendments have been filed.

"The health care cuts would affect people's lives, definitely, in the Berkshires", Berger added noting that not only does the area's older population require more medical attention, but Berkshire County's leading industry is health care. "The president and we believe that what we need to do is deliver on the tax relief that we promised", he said during an appearance on NBC's "Meet the Press".


The bill also differs in how it would tax smaller businesses that are taxed as individual income. Right now, the federal government can't tax residents on money they are already spending on local and state taxes, the GOP plan would make these taxes available to be taxed by the feds.

In highly-taxed NY state, the provision deducts $68 billion in property, income and other taxes for residents, according to the Internal Revenue Service.

According to the left-leaning Tax Policy Center, 45 percent of tax filers pay no federal income tax. These deductions saved more than $1 billion in Massachusetts' first district, aka Western Massachusetts, from being federally taxed. Republicans are trying to get tax reform through Congress by the end of the year.

"By not passing a repeal of ObamaCare, it cost them a trillion, and (the GOP) was expecting to use that money to finance the tax cuts", said Morss, who has a website with local and global economic analysis at morssglobalfinance.com. But the threat has real estate industry advocates concerned that the tax bill "will harm property values and lower the importance of home ownership as a public policy", Kremydas said.

An architect that designs and manages commercial building projects is every bit as much a jobs creator as a firm that invests in apartment buildings, but the Republican tax bill affords the latter much stronger incentives to invest than numerous former.

Congressional Democrats have criticized the Republican plans as lopsided, favoring wealthy Americans and corporate interests.

Other reports by Iphone Fresh

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