2018: Schweikert Voted For Permanently Extending The Expiring Provisions Of The 2017 Trump Tax Cuts. In September 2018, Schweikert voted for a bill that would have, according to Congressional Quarterly, "ma[d]e permanent a number of tax provisions that would otherwise expire in 2025. The provisions from the 2017 tax overhaul (PL 115-97) that would [have] become permanent include: reduced tax rates and modified tax bracket breakpoints for the seven tax brackets, the standard deduction amount, the elimination of personal exemptions for each taxpayer and dependent, and the increased child tax credit." The House passed the bill by a vote of 220 to 191. The Senate took no substantive action on the legislation. [House Vote 414, 9/28/18; Congressional Quarterly, 9/28/18; Congressional Actions, H.R. 6760]
CBO: Bill Would Increase The Deficit By $631 Billion Over The Next Ten Years. According to the Congressional Budget Office, "The staff of the Joint Committee on Taxation (JCT) estimates that enacting the bill would reduce revenues by about $597 billion over the 2019-2028 period, and increase outlays by $34 billion over the same period, leading to an increase in the deficit of $631 billion over the next 10 years. A portion of the changes in revenues would be from Social Security payroll taxes, which are off-budget. Excluding the estimated $687 million increase in off-budget revenues over the next 10 years, JCT estimates that H.R. 6760 would increase on-budget deficits by about $632 billion over the period from 2019 to 2028. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues." [CBO, 9/21/18]
TPC: Bill Would Reduce Federal Revenues By $3.2 Trillion From 2029 To 2038. According to the Tax Policy Center, "The bill would reduce federal revenues by $631 billion within the budget window (fiscal years 2019--28) and by almost $3.2 trillion over the subsequent decade (fiscal years 2029--38)." [TPC, 9/12/18]
CBPP: The Top 1 Percent Would Get An Average Tax Cut Of More Than $40,000, While The Bottom 60 Percent Would Get An Average Tax Cut Of Just $480. According to the Center on Budget and Policy Priorities, "The 2.0 tax plan would exacerbate that trend by delivering about twice the after-tax income gain for the top 1 percent than it would for households in the bottom 60 percent. (See Chart 2.) It would give an average tax cut of $40,180 to households in the top 1 percent (those with incomes above $836,200 in 2026), raising their after-tax incomes by 2.0 percent, compared to an average tax cut of just $480 and a 1.1 percent boost in after-tax income for households in the bottom 60 percent (those with incomes below $95,000)." [CBPP, 9/6/18]
2017: Schweikert Voted For The GOP FY 2018 Budget Resolution, Which Started The Process Towards Tax Reform Which Could Reduce The Deficit By $.5 Trillion Over Ten Years. In October 2017, Schweikert voted for a budget resolution that would have, according to The Hill, "The spending blueprint is key to Republicans' efforts to pass tax reform because it includes instructions that will allow the plan to avoid a Democratic filibuster. [...] The budget, meant to outline spending for the fiscal year, was widely viewed as a mere vehicle for passing tax reform. [...] The budget would allow the Senate GOP's tax plan to add up to $1.5 trillion to the deficit over a decade, a proposal that has raised concerns with fiscal hawks in the GOP. Its instructions call for the Senate Finance Committee to report a tax bill by Nov. 13. Still, the document outlines the Senate GOP's political vision. It maintains spending at 2017 levels for the year, but would then cut nondefense spending in subsequent years, leading to a $106 billion cut in 2027. It would also allow defense levels to continue rising at their current rates, reaching $684 billion at the end of a decade. The resolution also proposes $473 billion in cuts to Medicare's baseline spending over a decade and about $1 trillion from Medicaid, though those provisions are not enforceable without additional legislation." The vote was on a motion to concur in the Senate amendment. The House agreed to the motion, thereby agreeing to the budget by a vote of 216 to 212. [House Vote 589, 10/26/17; The Hill, 10/19/17; Congressional Actions, H. Con. Res. 71]
2017: Schweikert Voted For The House GOP FY 2018 Budget Resolution, Which Started The Process Towards Tax Reform And Called For Ending Medicare As We Know It. In October 2017, Schweikert voted for the House GOP FY 2018 budget resolution. According to Congressional Quarterly, "Adoption of the concurrent resolution that would provide for $3.2 trillion in new budget authority in fiscal 2018, not including off-budget accounts. It would assume $1.22 trillion in discretionary spending in fiscal 2018. It would assume the repeal of the 2010 health care overhaul law. It also would propose reducing spending on mandatory programs such as Medicare and Medicaid and changing programs such as the Supplemental Nutrition Assistance Program (also known as food stamps). It would call for restructuring Medicare into a 'premium support' system beginning in 2024. I would also require the House Ways and Means Committee to report out legislation under the budget reconciliation process that would provide for a revenue-neutral, comprehensive overhaul of the U.S. tax code and would include instructions to 11 House committees to trigger the budget reconciliation process to cut mandatory spending. The concurrent resolution would assume that, over 10 years, base (non-Overseas Contingency Operations) discretionary defense spending would be increased by a total of $929 billion over the Budget Control Act caps and non-defense spending be reduced by $1.3 trillion." The vote was on passage. The House passed the budget resolution by a vote of 219 to 206. A modified version was later agreed to by both the House and the Senate. [House Vote 557, 10/5/17; Congressional Quarterly, 10/5/17; Congressional Actions, H. Con. Res. 71]
2017: Schweikert Voted To Go To Conference With The Senate On Tax Reform. In December 2017, Schweikert voted for a motion that stated that, according to Congressional Quarterly, "the House disagree[s] with the Senate amendment and request[s] a conference with the Senate on the bill that would revise the federal income tax system by lowering individual and corporate tax rates, repealing various deductions through 2025." The vote was on a motion to go to conference with the Senate. The House agreed to the motion by a vote of 222 to 192. The eventual conference report was later signed into law. [House Vote 653, 12/4/17; Congressional Quarterly, 12/4/17; Congressional Actions, H.R. 1]
2017: Schweikert Voted For The Final Version Of Trump's Tax Reform Plan, Which Substantially Cut Taxes For Rich Americans And Corporations. In December 2017, Schweikert voted for the Tax Cut and Jobs Act, also known as Trump's tax reform bill. According to Congressional Quarterly, "This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called 'pass-through' businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a 'territorial' tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions." The vote was on a motion to concur with the Senate amendment, effectively on passage. The House agreed to the motion, thereby passing the bill by a vote of 224 to 201. President Trump signed the bill into law. [House Vote 699, 12/20/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
The House Had To Vote Again Because Three Provisions Violated Reconciliation Rules. According to The Hill, "In a 224-201 vote, the House passed the bill for the second time in two days on Wednesday, after three provisions had to be stripped out because they ran afoul of Senate budget rules. The Senate approved the bill early Wednesday morning." [The Hill, 12/20/17]
The Bill's Name And Two Education Related Provisions From The House Passed Version Violated The Byrd Rule. According to The Hill, "The Senate parliamentarian on Tuesday ruled that the GOP tax bill's short name, 'The Tax Cuts and Jobs Act,' violates budget rules, according to the office of Senate Budget Committee ranking member Bernie Sanders (I-Vt.). The title was found to violate the 'Byrd rule' that applies to bills moving under the 'budget reconciliation' process that allows legislation to avoid a Democratic filibuster in the Senate. Under the rule, reconciliation bills can't include provisions that don't have an impact on the budget. [...] The parliamentarian also ruled that two other provisions in the bill violate the Byrd rule. One would allows 529 college savings plans to be expanded to be used for home-schooling expenses. The other offending provision was part of the criteria used to determine what colleges qualify for a new excise tax. Because of the parliamentarian's ruling, the House will have to revote on the tax bill on Wednesday. The Senate is expected to vote on the bill Tuesday evening with the offending provisions stricken." [The Hill, 12/19/17]
2017: Schweikert Voted For The Final Version Of Trump's Tax Reform Plan, Which Substantially Cut Taxes For Rich Americans And Corporations. In December 2017, Schweikert voted for the Tax Cut and Jobs Act, also known as Trump's tax reform bill. According to Congressional Quarterly, "This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called 'pass-through' businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a 'territorial' tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions." The vote was on passage. The House passed the bill by a vote of 227 to 203. The Senate later passed a slightly modified version of the bill, which the House later agreed to. President Trump later signed an amended version of the bill into law. [House Vote 692, 12/19/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
Tax Rates Would Start At 10 Percent; Top Rate Would Be Reduced To 37 Percent. According to Bloomberg, "Current law: Seven rates, starting at 10 percent and reaching 39.6 percent for incomes above $418,401 for singles and $470,701 for married, joint filers. Proposed: Seven rates, starting at 10 percent and reaching 37 percent for incomes above $500,000 for singles and $600,000 for married, joint filers. For joint filers: 10 percent: $0 to $19,050 12 percent: $19,050 to $77,400 22 percent: $77,400 to $165,000 24 percent: $165,000 to $315,000 32 percent: $315,000 to $400,000 35 percent: $400,000 to $600,000 37 percent: $600,000 and above For single filers: 10 percent: $0 to $9,525 12 percent: $9,525 to $38,700 22 percent: $38,700 to $82,500 24 percent: $82,500 to $157,500 32 percent: $157,500 to $200,000 35 percent: $200,000 to $500,000 37 percent: $500,000 and above." [Bloomberg, 12/15/17]
Bill Would Nearly Double The Standard Deduction, But Eliminate The Personal Exemptions. According to Bloomberg, "Current law: $6,350 standard deduction for single taxpayers and $12,700 for married couples, filing jointly. Personal exemptions of $4,050 allowed for each family member. Proposed: $12,000 standard deduction for single taxpayers and $24,000 for married couples, filing jointly. Personal exemptions repealed." [Bloomberg, 12/15/17]
Bill Capped The State And Local Tax Deduction At $10,000, For Individuals Or Married Couple. "You can deduct just $10,000 in state, local and property taxes: One of the most controversial parts of the GOP tax plan is the push to greatly scale back how much state and local taxes Americans can deduct on their federal income taxes. Under current law, the state and local deduction (SALT) is unlimited. In the final GOP plan, people can deduct up to $10,000 (married couples are also limited to just $10,000). [...] The move is widely viewed as a hit to blue states such as New York, Connecticut and California, and there are concerns it could cause property values to fall in high-tax cities and leave less money for public schools and road repairs." [Washington Post, 12/15/17]
The State And Local Tax Deduction Is Effectively A Subsidy For Local Services. According to the Center on Budget and Policy Priorities, "Second, the SALT deduction helps state and local governments fund public services that provide widely shared benefits. That's because, with this deduction, higher-income filers are more willing to support state and local taxes. Repealing the deduction would almost certainly make it harder for states and localities --- many of which already face serious budget strains --- to raise sufficient revenues in the coming years to invest in high-quality education, infrastructure, and other priorities crucial to the nation's long-term economic prospects. State borrowing costs could also rise as bond rating agencies react to the reduced capacity of states to raise adequate revenue, making needed infrastructure projects more expensive. States and localities could also respond by raising taxes or fees that fall less heavily on the higher-income residents most affected by the deduction's loss. That would push more costs to middle- and low-income people, and make state and local tax systems even more regressive overall than they already are." [Center on Budget Policy Priorities, 10/24/17]
Bill Caps The Mortgage Interest Deduction For New Loans At Up To $750,000. According to Congressional Quarterly, "Limits the amount of mortgage interest that can be deducted to just that associated with the first $750,000 of a home loan (down from $1 million), and eliminates through 2025 the deduction for interest on second homes and home equity loans (the House bill would have set the mortgage interest limit at $500,000)" [Congressional Quarterly, 12/18/17]
Legislation Increased The Child Tax Credit. According to the Washington Post, "The current child tax credit is $1,000 per child. The House and Senate bills expanded the child tax credit, with the Senate going up to a maximum of $2,000 per child. The final bill keeps the $2,000-per-child credit (families making up to about $400,000 get to take the credit), but it also makes more of the tax credit refundable, meaning families that work but don't earn enough to actually owe any federal income taxes will get a large check back from the government. Benefits for those families were initially limited to about $1,100, but through changes Rubio and Lee pushed for, it's now up to $1,400." [Washington Post, 12/15/17]
Legislation Increased The Exemption For The Individual AMT. According to Bloomberg, "Current law: Individual AMT can apply after exemption level of $54,300 for singles and $84,500 for married, joint filers, and the exemptions phase out at higher incomes. Proposed: Increase the exemption to $70,300 for singles and $109,400 for joint filers. Increase the phase-out threshold to $500,000 for singles and $1 million for joint filers. The higher limits would expire on Jan. 1, 2026." [Bloomberg, 12/15/17]
Bill Changed The Inflation Rate For The Tax Brackets To The So-Called Chained CPI, Which Grows At A Slower Rate; This Would Lead To Many Americans Into Joining A Higher Bracket. According to Congressional Quarterly, "Like both the House and Senate bills, the agreement changes the manner in which tax brackets are increased each year to account for inflation and thereby prevent people from being pushed into higher tax rates as their income grows without an actual increase in purchasing power. Specifically, the measure switches to so-called 'chained CPI,' which many economists say represents a more accurate estimate of inflation because it factors in consumer substitution of cheaper products. Chained CPI is usually lower than the current inflationary index used (the CPI-U; the Consumer Price Index for All Urban Consumers), which means that tax brackets would not rise as rapidly and more taxpayers may end up in higher tax rates. Under the measure, new tax brackets each year would be set by using chained CPI and then rounding down to the next lowest multiple of $100. And unlike most other individual and family tax provision, the use of chained CPI would be permanent." [Congressional Quarterly, 12/18/17]
Legislation Doubles The Estate Tax Exemption. According to the Washington Post, "You can pass your heirs up to $22 million tax-free: In the end, the estate tax (often called the 'death tax' by opponents) would remain part of the U.S. tax code, but far fewer families will pay it. Under current law, Americans can pass on up to $5.5 million tax-free (that threshold is $11 million for married couples). The House wanted to do away with the estate tax entirely, but some senators felt that was too much of a giveaway to the mega-rich. The final compromise was to double the threshold, so now the first $11 million that people pass on to their heirs in property, stocks and other assets won't be taxed (and yes, that means $22 million for married couples)." [Washington Post, 12/15/17]
Only 2 Out Of 1,000 Estates Will Face A Tax Under Current Law. According to the Center on Budget and Policy Priorities, "Only the heirs of the wealthiest 2 out of every 1,000 estates will face any estate tax. [...] Repeal would provide the top 0.2 percent of estates with tax-cut windfalls averaging more than $3 million apiece. About 330 estates worth more than $50 million would get tax cuts averaging more than $20 million apiece." [Center on Budget Policy Priorities, Accessed 11/22/17]
2001 New York Times Article Noted That Not A Single Example Of A Farm Was Lost Due To The Estate Tax. According to the Center on Budget and Policy Priorities, "As the New York Times reported in 2001, when the estate tax applied to far more estates than it does today: 'Even one of the leading advocates for repeal of estate taxes, the American Farm Bureau Federation, said it could not cite a single example of a farm lost because of estate taxes.'" [Center on Budget Policy Priorities, Accessed 11/22/17]
Legislation Reduces The Threshold For The Medical Expense Deduction Through 2018. According to Bloomberg, "Current law: Qualified medical expenses that exceed 10 percent of the taxpayer's adjusted gross income are deductible. Proposed: Reduce the threshold to 7.5 percent of AGI for 2017 and 2018." [Bloomberg, 12/15/17]
Tax Policy Center: From 2018 -- 2025, Average Taxes Fall For Most Americans, But By 2027, 53 Percent Of Americans Would Pay More. According to the Tax Policy Center, "The Tax Policy Center has released distributional estimates of the conference agreement for the Tax Cuts and Jobs Act as filed on December 15, 2017. We find the bill would reduce taxes on average for all income groups in both 2018 and 2025. In general, higher income households receive larger average tax cuts as a percentage of after-tax income, with the largest cuts as a share of income going to taxpayers in the 95th to 99th percentiles of the income distribution. On average, in 2027 taxes would change little for lower- and middle-income groups and decrease for higher-income groups. Compared to current law, 5 percent of taxpayers would pay more tax in 2018, 9 percent in 2025, and 53 percent in 2027." [Tax Policy Center, 12/18/17]
In 2027, 83 Percent Of The Total Tax Benefit Would Go To The Top One Percent. According to Tax Policy Center, "In 2027, the overall average tax cut would be $160, or 0.2 percent of after-tax income (table 3), largely because almost all individual income tax provisions would sunset after 2025. On average, taxes would be little changed for taxpayers in the bottom 95 percent of the income distribution. Taxpayers in the bottom two quintiles of the income distribution would face an average tax increase of 0.1 percent of after-tax income; taxpayers in the middle income quintile would see no material change on average; and taxpayers in the 95th to 99th income percentiles would receive an average tax cut of 0.2 percent of after-tax income. Taxpayers in the top 1 percent of the income distribution would receive an average tax cut of 0.9 percent of after-tax income, accounting for 83 percent of the total benefit for that year." [Tax Policy Center, 12/18/17]
In 2027, 86 Million Americans Would See A Tax Increase. According to ABC News, "The bill, which carries an estimated $1.5 trillion price tag over 10 years, is not expected to win any Democratic support. House Minority Leader Nancy Pelosi points to a new analysis from the non-partisan Tax Policy Center that predicts 86 million people would see a tax increase compared to current law by 2027, while 83 percent of the anticipated benefits would be reaped by the wealthiest one percent of taxpayers." [ABC News, 12/19/17]
Last Minute Added Provision Gave A Tax Break To Real-Estate Moguls. According to the International Business Times, "President Donald Trump has made tens of millions of dollars of a specific kind of income that could be subjected to a last-minute tax break inserted into the Republicans' tax legislation released Friday, according to federal records reviewed by International Business Times. The same is true for Tennessee GOP Sen. Bob Corker --- a commercial real estate mogul who suddenly switched his vote to 'yes' on the tax bill after the provision was added to the legislation. Previously, Corker was the only Republican to vote against the Senate version of the bill. [...] The reconciled tax bill includes a new 20 percent deduction for so-called 'pass-through' entities, business structures such as LLCs, LPs and S-Corporations that don't pay corporate taxes, but instead 'pass through' income to partners who pay individual tax rates on that money. The Senate version of the bill included safeguards that would only allow businesses to take advantage of the new break if they paid out significant wages to employees. But the new provision, which wasn't included in either version of the bill passed by the House and Senate, and was only added during the reconciliation process, gives owners of income-producing real estate holdings a way around that safeguard, effectively creating a new tax break for large landlords and real estate moguls." [International Business Times, 12/16/17]
Bill Repealed The Corporate AMT. According to Bloomberg, "Current law: Applies a 20 percent rate as part of a parallel tax system that limits tax benefits to prevent large-scale tax avoidance. Companies must calculate their ordinary tax and AMT tax, and pay whichever is higher. Proposed: Repealed" [Bloomberg, 12/15/17]
Legislation Bars Business Deductions For Costs Associated With Sexual Harassment Settlements That Had A Non-Disclosure Agreement. According to the New York Times, "The sexual misconduct allegations against the former Fox News host Bill O'Reilly and the Hollywood producer Harvey Weinstein --- and the confidential settlements arising from those accusations --- have prompted a provision in the final tax bill that aims to stem the use of nondisclosure agreements. Senator Robert Menendez, a Democrat from New Jersey, proposed the amendment last month. It says any settlement, payout or lawyer's fees related to sexual harassment or sexual abuse could not be deducted as a business expense if such payments were subject to a nondisclosure agreement." [New York Times, 12/16/17]
Bill Allowed For Immediate Business Expensing From 2017 Though 2022. According to Bloomberg, "Current law: Businesses must take depreciation, spreading the recognition of their equipment costs for tax purposes over several years. Proposed: Businesses could fully and immediately deduct the cost of certain equipment purchased after Sept. 27, 2017 and before Jan. 1, 2023. After that, the percentage of cost that could be immediately deducted would gradually phase down." [Bloomberg, 12/15/17]
Legislation Opened Up Parts Of ANWR To Drilling. According to Congressional Quarterly, "Passage of the bill, as amended, that would revise the federal income tax system by lowering individual and corporate tax rates, repealing various deductions through 2025, specifically by eliminating the deduction for state and local income taxes through 2025, increasing the deduction for pass-through entities and raising the child tax credit through 2025. It would also open parts of the Arctic National Wildlife Refuge to oil and gas drilling." [Congressional Quarterly, 12/2/17]
Bill Would Repeal The Individual Mandate. According to the Congressional Budget Office, "Repealing the Individual Mandate. The bill's most significant effects on outlays would occur as a result of the elimination, beginning in 2019, of the penalties associated with the individual mandate. CBO and JCT estimate the following effects of that provision:" [Congressional Budget Office, 11/26/17]
13 Million Fewer Americans Would Have Health Insurance As A Result Of Repealing The Individual Mandate. According to the Congressional Budget Office, "Repealing the Individual Mandate. The bill's most significant effects on outlays would occur as a result of the elimination, beginning in 2019, of the penalties associated with the individual mandate. CBO and JCT estimate the following effects of that provision: [...] The number of people with health insurance would decrease by 4 million in 2019 and 13 million in 2027." [Congressional Budget Office, 11/26/17]
Premiums Would Increase By About 10 Percent. According to the Congressional Budget Office, "Average premiums in the nongroup market would increase by about 10 percent in most years of the decade (with no changes in the ages of people purchasing insurance accounted for) relative to CBO's baseline projections. In other words, premiums in both 2019 and 2027 would be about 10 percent higher than is projected in the baseline." [Congressional Budget Office, 11/26/17]
Bill Lowers The Corporate Tax Rate From 35 Percent To 21 Percent. According to Congressional Quarterly, "It cuts the corporate tax rate from 35% to 21%, allows businesses (excluding public utilities and real estate-related businesses) to immediately expense 100% of the cost of assets that are acquired and placed into service by the business (up from 50% under current law), and repeals the alternative minimum tax (AMT) for corporations." [Congressional Quarterly, 12/18/17]
Bill Reduced Taxes For Pass-Through Companies Via A 20 Percent Deduction. According to Vox, "Pass-through companies, like the Trump Organization, which get a new deduction reducing their tax burden. The House-Senate compromise bill allows people with pass-through income to deduct a portion of that income from their taxes; the deduction is for 20 percent of pass-through income, less than the 23 percent under the Senate-passed bill." [Vox, 12/18/17]
Legislation Would Convert The U.S. International System To A Territorial System Where Foreign Profits Are Not Subject To U.S. Taxes. According to CNN, "Change how U.S. multinationals are taxed: Today U.S. companies owe Uncle Sam tax on all their profits, regardless of where the income is earned. They're allowed to defer paying U.S. tax on their foreign profits until they bring the money home. Many argue that this 'worldwide' tax system puts American businesses at a disadvantage. That's because most foreign competitors come from countries with territorial tax systems, meaning they don't owe tax to their own governments on income they make offshore. The Senate bill proposes changes to move the U.S. to a territorial system. It also includes a number of anti-abuse provisions to prevent corporations with foreign profits from gaming the system. And it would require companies to pay a one-time low tax rate on their existing overseas profits -- 14.5% on cash assets and 7.5% on non-cash assets (e.g., equipment abroad in which profits were invested), slightly higher than the 14% and 7% rates in the House bill." [CNN, 12/2/17]
Bill Created A One-Time "Repatriation" Fee Of 15.5 Percent For Companies That Earned Income Oversees That Is Still Being Held There. According to Congressional Quarterly, "The agreement encourages companies to 'repatriate' those stockpiled earnings back into the United States by offering a much lower, one-time, 15.5% tax on those foreign earnings held as cash or other liquid form (versus 14% in the House bill) and an 8% tax for any earnings that were reinvested in illiquid assets). Under the measure, this repatriation tax could be payable in escalating installments over eight years. The measure includes special rules for S Corporations, REITs, and for identifying the scope of earnings and profits subject to the transition tax." [Congressional Quarterly, 12/18/17]
Bill Would Increase The Deficits By Nearly $1.5 Trillion And Over $1 Trillion When Accounting Economic Growth. According to Congressional Quarterly, "The Joint Committee on Taxation (JCT) estimates that the agreement would increase deficits by $1.46 trillion over 10 years. In conducting macroeconomic analyses of the House and Senate bills, JCT found that the House bill as passed would generate economic growth that results in $428 billion of additional revenues over 10 years while the Senate bill as reported would generate $408 billion in additional revenues --- in both cases still leaving deficits of over $1 trillion." [Congressional Quarterly, 12/18/17]
Legislation Would, Because Of PayGo Rules Regarding The Bill's Deficit Increase, Force Automatic Spending Cuts, Including $25 Billion In Medicare Next Year. According to Politico, "Republicans are on the verge of a massive tax overhaul that would hand President Donald Trump his first major legislative victory. But the $1.5 trillion tax package could trigger eye-popping cuts to a slew of federal programs, including Medicare. Unless Congress acts swiftly to stop it, as much as $150 billion per year would be cut from initiatives ranging from farm subsidies to student loans to support services for crime victims. Medicare alone could see cuts of $25 billion a year. And the specter of those cuts has thrust Congress into a high-stakes game of political chicken." [Politico, 11/30/17]
Most Of The Bill's Tax Cuts For Individuals Are Temporary, But The Corporate Ones Are Permanent. According to the Washington Post, "The core of the plan is a massive and permanent cut to the corporate tax rate, dropping it from 35 percent to 21 percent. The bill also would cut individual tax rates for all income tax levels. Families earning less than $25,000 a year would receive an average tax cut of $60, while those earning more than $733,000 would see an average cut of $51,000, according to the nonpartisan Tax Policy Center. Many of the breaks for individuals are set to expire in the coming years. Republicans set those expiration dates to comply with Senate limits on how much their legislation could add to the nation's deficit, and they say a future Congress will extend the cuts or make them permanent." [Washington Post, 12/20/17]
Bill Did Not Repeal The 'Carried Interest' Loophole, Even Though Then-Candidate Trump Campaigned On Doing So. According to Business Insider, "President Donald Trump said during his campaign that he would close a tax loophole for fund managers. 'The hedge fund guys didn't build this country,' he told John Dickerson on CBS's 'Face the Nation' in August 2015. 'These are guys that shift paper around and they get lucky.' 'Half of them, look, they're energetic, they're very smart, but a lot of them, it's like they're paper pushers. They make a fortune, they pay no tax. It's ridiculous, OK?' But that loophole --- the carried interest provision --- remains in the Republicans' final version of the tax bill, which the House and Senate are scheduled to vote on Tuesday." [Business Insider, 12/19/17]
Legislation Alters 529 Education Accounts To Allow Up To $10,000 For Private Primary Or Secondary Schools And Allows Certain Withdrawals For Homeschool Expenses. According to Congressional Quarterly, "The agreement modifies education- and disability-related tax benefits with regard to section 529 education savings plans and ABLE accounts, which are tax-advantaged savings accounts for individuals with disabilities and their families[.] Specifically, it allows section 529 savings plans to distribute up to a maximum of $10,000 in expenses related to private elementary or secondary school. It also modifies the definition of higher education expenses to include certain expenses related to a homeschool." [Congressional Quarterly, 12/18/17]
Bill Creates A 1.4 Percent Excise Tax On Certain Private College's Endowment. According to Congressional Quarterly, "Similar to both House and Senate bills, the measure imposes a 1.4% excise tax on the net investment income of private colleges and universities that have at least 500 tuition paying students and assets valued at the close of the preceding tax year of at least $500,000 per full-time student (versus $250,000 in the House). Assets calculated for that determination would exclude those assets used directly in carrying out the institution's educational purposes, but generally would include the assets of any related organization controlled by the educational institution or that is a supporting organization." [Congressional Quarterly, 12/18/17]
Legislation Increased Taxes On Gold Star Families. According to CNN, "Survivor benefits designated to children were previously taxed at the parent's rate, but changes in the 2017 tax law, which Republicans say were intended to simplify tax rules for child income, led to the steep hikes for some Gold Star families. The government instead began treating the Defense Department benefit as if it were a trust or estate, meaning it could be taxed at rates as high as 37%." [CNN, 5/2/19]
2017: Schweikert Voted For The House GOP's 2017 Tax Reform Plan Which Significantly Cut Taxes For The Rich And Corporations. In November 2017, Schweikert voted for reconciliation legislation which significantly altered the federal tax code. According to Congressional Quarterly, "The bill substantially restructures the U.S. tax code to simplify the code and reduce taxes on individuals, corporations and small businesses. For individuals, it consolidates the current seven tax brackets down to four and eliminates or restricts many tax credits and deductions, including by eliminating the deduction for state and local income taxes and limiting the deduction for property taxes to $10,000 and the interest deduction for a home mortgage to the first $500,000 worth of a loan. [...] On the business side, it reduces the corporate tax from 35% to 20% and establishes a 'territorial' tax system that would exempt most income derived overseas from U.S. corporate taxation. It allows businesses to immediately expense 100% of the cost of assets acquired and placed into service, and for small businesses it raises the Section 179 expensing limit to $5 million for five years. It also establishes a 25% rate for a portion of pass-through business income that would otherwise have to be paid at the ordinary individual tax level, and for small businesses where an individual would receive less than $150,000 in pass-through income it taxes the first $75,000 of that income at a 9% rate." The vote was on passage. The House passed the bill by a vote of 227 to 205. President Trump later signed an amended version of the bill into law. [House Vote 637, 11/16/17; Congressional Quarterly, 11/15/17; Congressional Actions, H.R. 1]
Legislation Alters The Federal Individual Income Tax Structure From Seven To Four Tax Rates, Including Increasing The Top Rate From $500,000 To $1,000,000 For An Individual. According to Congressional Quarterly, "Tax Rate Restructuring --- Reduces and restructures federal income tax rates by consolidating the seven current rates into four rates --- 12%, 25%, 35% and 39.6% --- which would reduce rates for most taxpayers. Under the measure, the 12% bracket would apply to taxable income up to $45,000 for individuals and $90,000 for married couples; the 25% bracket to additional income up to $200,000 for individuals and $260,000 for couples; the 35% bracket to additional income up to $500,000 for individuals and $1 million for couples; and the top 39.6% bracket to additional income above those levels." [Congressional Quarterly, 11/15/17]
Legislation Alters The Mortgage Interest Deductions To Cap New Debt Incurred After November 1st, 2017 At $500,000 And Eliminates The Deduction For Second Homes And Equity Loans. According to Congressional Quarterly, "Limits the amount of mortgage interest that can be deducted to just that associated with the first $500,000 of a home loan (down from $1 million), and eliminates the deduction for interest on second homes and home equity loans (interest associated with existing mortgages as of Nov. 1, 2017, could still be deducted)." [Congressional Quarterly, 11/15/17]
Bill Eliminated The Deduction For State And Local Income Taxes And Capped The Overall State And Local Tax Deduction At $10,000 For Property Taxes. According to Congressional Quarterly, "State & Local Deduction --- Eliminates deductions for state and local income taxes and caps the deduction for state or local property taxes at $10,000." [Congressional Quarterly, 11/15/17]
Legislation Eliminates The Personal Exemptions, But Doubles The Standard Deduction. According to Congressional Quarterly, "The bill significantly increases the standard deduction, nearly doubling it to $12,200 for individual filers and $24,400 for joint filers (the 2018 standard deduction is to be $6,500 for individuals and $13,000 for joint filers). However, it eliminates the personal exemptions that taxpayers may claim for themselves, their spouses and for any dependents (which for 2018 is to be $4,150 per person). The personal exemption, along with either the standard deduction or itemized deductions, reduces a taxpayer's adjusted gross income in determining taxable income. To temporarily replace the personal exemption, the measure creates a new family credit (see below)." [Congressional Quarterly, 11/15/17]
Legislation In Part Replaces The Personal Exemption By Creating A $300 Credit For Parents And Non-Children Dependents -- But For Only Five Years - And Increases The Child Tax Credit By $600. According to Vox, "The child tax credit, currently $1,000, will grow to $1,600, and a new $300 credit for parents and other non-child dependents in the house (the $300 credit expires after five years, presumably to save money)." [Vox, 11/16/17]
The Bill Repeals The AMT. According to the Washington Post, "The mega-wealthy also would get to keep charitable deductions, a popular way that lowers their tax bills, and they no longer would have to pay the alternative minimum tax (AMT), a safeguard against excessive tax dodging that's been in place since 1969." [Washington Post, 11/16/17]
The Measure Changes The Metric In Which Inflation Is Adjusted For Tax Brackets To "Chained CPI", Which While More Accurate, Grows More Slowly Than The Current Metric. According to Congressional Quarterly, "The measure changes the manner in which tax brackets are increased each year to account for inflation and thereby prevent people from being pushed into higher tax rates as their income grows without an actual increase in purchasing power. Specifically, the bill switches to so-called 'chained CPI,' which many economists say represents a more accurate estimate of inflation because it factors in consumer substitution of cheaper products. Chained CPI is usually lower than the current inflationary index used (the CPI-U; the Consumer Price Index for All Urban Consumers), which means that tax brackets would not rise as rapidly and more taxpayers may end up in higher tax rates. Under the measure, new tax brackets each year would be set by using chained CPI and then rounding down to the next lowest multiple of $100." [Congressional Quarterly, 11/15/17]
Legislation Repeals The Medical Expenses Deduction. According to Vox, "A variety of other, much smaller deductions, like the medical expense deduction and the property casualty loss deductions, are repealed." [Vox, 11/16/17]
Legislation Repealed The Deduction For Alimony Paid. According to CNBC, "The Tax Cuts and Jobs Act, unveiled on Thursday, includes a provision to kill the deduction that taxpayers get for making such payments to an ex-spouse. Although it's just one of the many tax breaks eliminated under the legislation, experts say it will end up most hurting the person receiving the money. [...] The new tax legislation essentially would shift much of the taxation from the recipient to the alimony payer. 'Due to the disparity in tax rates that exist in these cases, this would have a negative effect on the payee. That's the bottom line,' said Malcolm Taub, co-chair of Davidoff Hutcher & Citron's Divorce & Family Law Group in New York. Because the ex-spouse receiving the alimony typically is in a lower tax bracket, the amount of tax paid by the recipients --- the majority of which are women --- on the spousal support is less. And it's something that courts, attorneys and divorce planners take into consideration when divvying up assets." [CNBC, 11/3/17]
Legislation Counts Tuition Waivers As Income, Thereby Significantly Increasing The Tax Burden For Certain Graduate Students. According to CNBC, "The House Republican tax plan includes a $1.5 trillion corporate tax cut and a giant tax hike on graduate students. Tamar Oostrom, who is currently earning her Ph.D. in economics at MIT, has been crunching the numbers to determine how the current House Republican bill would affect the taxes paid by graduate students. [...] Grad students like Oostrom often afford advanced degrees by earning a tuition waiver. In these instances, graduate students will work for the university by teaching classes and/or conducting research in exchange for free tuition. According to the American Council on Education, roughly 145,000 graduate students receive this kind of tuition reduction. Some programs provide graduate students with a modest stipend for food and housing. For instance, Ryan Hill, a fourth-year Ph.D. student at MIT, receives a $30,000 living stipend and a tuition waiver allowing him to forego paying $50,000 in tuition. He currently pays taxes on his $30,000 stipend, but under the proposed House tax bill, his tuition waiver would also be taxed --- meaning he would be taxed as if he was earning $80,000 a year." [CNBC, 11/16/17]
Legislation Modifies Numerous Education Tax Credits By Folding Them All Into A Reformed American Opportunity Tax Credit. According to Congressional Quarterly, "It consolidates certain education tax credits, folding the Hope Scholarship Credit and the Lifetime Learning Credit into the American Opportunity Tax Credit (AOTC), which would be modified to be available for a fifth year of post-secondary education at half the rate as the first four years, with up to $500 of the credit being refundable. The AOTC would continue to provide a 100% tax credit for the first $2,000 of certain higher education expenses, such as tuition, fees, and course materials, and a 25% tax credit for the next $2,000 of such expenses." [Congressional Quarterly, 11/15/17]
Legislation Allowed Unborn Children To Have Education Savings Accounts Set Up In Their Name. According to the Wall Street Journal, "Abortion rights and antiabortion activists joined the tax bill lobbying fray late Thursday, as a provision allowing adults to set up a college savings account for a 'child in utero' caught the attention of bill readers." [Wall Street Journal, 11/2/17]
Legislation Repeals The Tax Deduction For Student Loan Interest. According to the Washington Post, "At the moment, low and middle income Americans can deduct up to $2,500 a year in student loan interest. That benefit would go away in 2018." [Washington Post, 11/16/17]
Bill Repeals The Tax Break Where Teachers Can Deduct $250 Of Non-Reimbursed Classroom Expenses. According to Politico, "On the secondary school side, the House GOP plan scraps a tax break that allowed teachers to deduct up to $250 in out-of-pocket expenses for the classroom." [Politico, 11/2/17]
Legislation Alters The Moving Expense Tax Break To Only Allow It For Active Duty Military. According to Congressional Quarterly, "For moving expenses, it allows a deduction only for members of the active-duty military." [Congressional Quarterly, 11/15/17]
Bill Repeals The Tax Credit For Plug-In Electric Cars. According to the Congressional Quarterly, "The measure retains the credit for child adoption expenses, but it repeals a number of other credits, including the credit associated with mortgage credit certificates, the credit for plug-in motor vehicles, and a credit for certain individuals who are over the age of 65 or who have retired on disability." [Congressional Quarterly, 11/15/17]
Bill Would Phase In A Complete Estate Tax Repeal. According to Congressional Quarterly, "It also repeals the estate tax starting in 2025, and until that time doubles from $5.6 million to $11.2 million (adjusted annually for inflation) the amount per spouse that is exempted from the estate tax. The gift tax rate would be reduced to 35%." [Congressional Quarterly, 11/15/17]
Legislation Reduces The Corporate Tax Rate From 35 Percent To 20 Percent. According to Congressional Quarterly, "It cuts the corporate tax rate from 35% to 20%, except for personal services firms organized as C corporations, which would pay a 25% rate." [Congressional Quarterly, 11/15/17]
Bill Moves The International Tax System To Something Known As "Territorial" Where Foreign Profits Are Not Subject To The Corporate Income Tax. According to Congressional Quarterly, "The bill replaces the current system of taxing U.S. corporations on the foreign-source earnings of their foreign subsidiaries with a dividend-exemption system --- which would exempt from U.S. taxation 100% of the foreign-source portion of dividends paid by a foreign company to a U.S. corporation, if the U.S. company owns 10% or more of the foreign entity. Under the measure, U.S. corporations could not claim any foreign tax credit or deduction for its foreign tax liability with respect to exempted dividends, and no deductions for expenses allocable to an exempt dividend would be taken into account for purposes of determining the U.S. corporation's foreign-source income." [Congressional Quarterly, 11/15/17]
Legislation Would Allow For Immediate Business Expensing For Five Years. According to Congressional Quarterly, "It allows businesses (excluding public utilities and real estate-related businesses) for five years to immediately expense 100% of the cost of assets that are acquired and placed into service by the business, and also repeals the ability of a business to use stockpiled alternative minimum tax (AMT) credits in the place of depreciation." [Congressional Quarterly, 11/15/17]
The Bill Significantly Altered Taxation For So-Called "Pass-Through" Businesses By Lowering The Rate To 25 Percent; Certain Professional Firms Would Not Be Subject To The New Lower Rate. According to Congressional Quarterly, "'Pass-through' Businesses --- Modifies the treatment of pass-through business income, which is generally not subject to tax at the business level but is taxed at the individual level when it is distributed to owners in the form of profits, wages, or capital gains. It establishes a new top 25% rate on such pass-through business income, but generally allows just 30% of a business's net income to be taxed at that rate, with the remainder being taxed at the individual's ordinary income rate. Services firms such as lawyers, accountants and physicians generally could not take advantage of this rate, except to the extent they have capital investments." [Congressional Quarterly, 11/15/17]
Legislation Modified, But Does Not Eliminate, The Carried Interest Loophole. According to Congressional Quarterly, "Carried Interest --- The bill modifies the so-called 'carried interest rule,' which allows private equity and hedge fund managers to be taxed on certain income at the lower capital gains rate rather than at the individual tax rate for ordinary income. Specifically, it requires that for preferential capital gains treatment the asset must be held for at least three years, instead of only one." [Congressional Quarterly, 11/15/17]
Legislation Repealed The Corporate AMT. According to Congressional Quarterly, "The bill also repeals the corporate alternative minimum tax (AMT), as well as the ability of a business to use stockpiled AMT credits in the place of depreciation." [Congressional Quarterly, 11/15/17]
Bill Repeals Numerous Energy Tax Credits, Including The Per-Barrel Credit For Crude Oil And Certain Clean Energy Tax Credits. According to Congressional Quarterly, "The bill makes a number of modifications to tax credits provided for the production of energy, including repeal of the inflation adjustment for the renewable electricity production tax credit for qualified projects placed in service after Nov. 2, 2017, with the credit amount reverting to 1.5 cents per kilowatt hour (from 2.3 cents in 2016), and harmonization of the expiration dates, phase-out schedules and application of the 30% investment tax credit as applied to solar, fuel cell, and small wind energy. That investment tax credit would not be available for properties beginning construction after 2021." [Congressional Quarterly, 11/15/17]
Bill Repeals Tax Exemption For Private Actively Bonds. According to Congressional Quarterly, "Interest paid on certain private activity bonds (PABs), which are issued by state and local governments to finance activities of, or loans to, private parties, is exempt from federal tax. The bill repeals the tax exemption for newly issued PABs; the committee says it wants to ensure that the federal government does not subsidize the borrowing costs of private businesses to the detriment of other business that cannot avail themselves of PABs." [Congressional Quarterly, 11/15/17]
Bill Repeals Tax Deduction For Interest On State And Local Bonds On Professional Sports Stadiums. According to Congressional Quarterly, "State and Local Bonds --- Subjects to federal taxation the interest paid from any new private activity bonds (PABs) issued in the future by state and local governments to finance the activities of, or loans to, private parties, and it also repeals the federal tax exemption on advance refunding bonds. It also subjects to federal taxation the interest paid on state and local bonds issued to build professional sports stadiums." [Congressional Quarterly, 11/15/17]
Legislation Taxes Certain Large College Endowments. According to Congressional Quarterly, "The measure imposes a 1.4% excise tax on the net investment income of private colleges and universities that have at least 500 students and assets valued at the close of the preceding tax year of at least $250,000 per full-time student. Assets calculated for that determination would exclude those assets used directly in carrying out the institution's educational purposes." [Congressional Quarterly, 11/15/17]
Bill Would Repeal The So-Called "Johnson Amendment", Which Prevents Non-Profits From Endorsing Political Candidates. According to USA Today, "A provision in the tax bill to allow churches to be more directly engaged in politics could cost the U.S. government hundreds of millions of dollars, congressional experts say, because some political donors would shift their money to tax-exempt charities. The House Ways and Means Committee approved a sweeping overhaul of the tax code Thursday, including a provision to do away with the 'Johnson Amendment,' a 1954 provision that forbids non-profit charities --- called 501(c)(3)s --- from endorsing political candidates." [USA Today, 11/10/17]
Republican Supporters Claim That The Bill Will Increase Economic Growth And Increase After-Tax Income For The Average Middle-Class Family By $4,000. According to Congressional Quarterly, "Supporters of the bill, primarily Republicans, say it will provide relief from a broken tax code, a slow-growing economy, stagnant wages, and from jobs fleeing overseas. They say the legislation charts a new course for the country and is expected to create one million new jobs, increase annual after-tax income for middle-income households by an average of $4,000 and grow the U.S. economy by more than 3.5% each year. Workers will finally be able to get the raise they deserve, more families will have help to buy a home, raise children, pay for college, and plan for their future, while businesses of all sizes will be able to create jobs, increase paychecks, and invest in the United States." [Congressional Quarterly, 11/15/17]
Legislation Will Add $1.5 Trillion To The National Debt. According to the Committee for a Responsible Federal Budget, "The House of Representatives passed a tax cut package today that will add $1.5 trillion or more to the national debt. The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget: The House approved debt-financed tax cuts based on predictions of magical economic growth that defy history and all credible analyses. Tax reform should grow the economy and not add to the debt. Unfortunately, lawmakers are assuming faster economic growth will pay for that debt increase when there is no evidence it will cover more than a fraction of the tax bill's costs." [CRFB, 11/16/17]
Legislation's Changes To Education Policy "Would Increase The Cost Of College By $71 Billion Over A Decade." According to the Washington Post, "Government analysis shows House tax bill would increase the cost of college by $71 billion over a decade. The repeal and revision of higher-education tax benefits in the bill passed Thursday by the House would cost students and families more than $71 billion over the next decade, according to an official analysis by Congress's Joint Committee on Taxation." [Washington Post, 11/16/17]
President "Trump And His Family Could Save More Than $1 Billion Under House Tax Bill." According to NBC News, "Trump and his family could save more than $1 billion under House tax bill [...] In fact, Trump and his heirs potentially could save more than $1 billion overall under the GOP tax proposal that the House of Representatives passed Thursday, with most of that amount coming from a repeal of the estate tax, according to an analysis NBC News commissioned of Trump's one known 2005 tax return and his estimated net worth. Trump would save more than $20 million himself, according to the analysis of how the legislation affects his 2005 tax return, and his heirs could potentially save $1.1 billion based on his reported wealth." [NBC News, 11/16/17]
Bill Retained A Tax Break For Golf Course Owners When They Pledge To Not Develop Certain Land. According to the Washington Post, "The Republican tax plan could also benefit Trump by protecting exemptions that help his business. The House bill would still allow golf course owners to claim deductions if they commit to never building on the land, a write-off that Sen. Jeff Flake (R-Ariz.) included in his report this year on 'outlandish loopholes.'" [Washington Post, 11/10/17]
Moving To A Territorial International Tax System Would Encourage Outsourcing. According to William Gale of the Tax Policy Center, "The plan would also move the U.S. toward a territorial tax system, under which U.S. companies would pay no U.S. taxes on their foreign income. That would encourage them to ship jobs, capital, and profits overseas." [Brookings Institution, 10/20/17]
Legislation Would Raise Taxes On 36 Million Middle Class Americans. By 2027 According to the Tax Policy Center via the Center for American Progress, "In fact, the Tax Policy Center found that 36 million middle-class and working families nationally would experience a tax increase under the House tax plan by 2027." [Center for American Progress, 11/15/17]
By 2027, The Top 1 Percent Would Get 50 Percent Of The Total Benefit. According to the Tax Policy Center, "In 2027, the overall average tax cut would be smaller than in 2018, reducing taxes by about $860 on average, or 0.9 percent of after-tax income (table 2). Taxpayers in the bottom two quintiles of the income distribution (those with income less than about $55,000) would see little change in their taxes, with average tax decreases of $50 or less. Taxpayers in the middle of the income distribution would see a net tax cut on average and see their after-tax incomes increase 0.5 percent. Taxpayers in the top 1 percent would receive nearly 50 percent of the total benefit; their after-tax income would increase 2.6 percent on average." [Tax Policy Center, 11/13/17]
Some Republicans Claimed That Donor Pressure Was The Reason For The Bill. According to the Associated Press via the Washington Post, "House Republicans cited donor pressure as they rolled over Democratic objections Tuesday and pushed forward with contentious legislation to overhaul the nation's tax code. 'My donors are basically saying get it done or don't ever call me again,' Republican Rep. Chris Collins of New York told reporters. [...] Indeed, the political backdrop was inescapable as Republicans sought final action by year's end on the bill that's strongly supported by President Donald Trump as he and Congress' GOP majorities search for a legislative win they can take to voters next year." [Associated Press via the Washington Post, 11/7/17]
Bill Includes Numerous Loopholes For Wall Street. According to Bloomberg, "Lawmakers who sped a bill through the U.S. House last week may have handed a few more goodies to Wall Street's wealthiest than they realize. Investors in billion-dollar hedge funds might be able to take advantage of a new, lower tax rate touted as a break for small businesses. Private equity fund managers might be able to sidestep a new tax on their earnings. And a combination of proposed changes might allow the children and grandchildren of the very wealthy to avoid income taxes in perpetuity." [Bloomberg, 11/21/17]
Bill Includes Permanent Tax Cuts For Corporations, But Not For Individuals. According to the Washington Post, The essential gamble of Republican plans to overhaul the tax code is now becoming clear: Big businesses get a large, permanent tax cut, while American families receive only temporary tax relief that expires as soon as 2023 in the House bill and 2026 in the Senate bill. In the House bill, the tax increase would mostly hit moderate and middle-income families because a credit designed to help them expires after five years. But in the Senate plan, released late Tuesday, virtually all Americans would face higher tax rates because the individual income rate cuts go away entirely in 2026. The tax cuts for corporations do not expire." [Washington Post, 11/15/17]