GOP Consider Reduced Tax Breaks for Corporations and the Rich

Congressional officials and senior members of the White House are considering a number of methods to make tax reform much less for high net worth individuals. A smaller tax cut for corporates may also be in the offing. If Republicans can achieve this, it will help the GOP in two ways- reduce the tax reform cost and widen the tax reform's political appeal.

Negotiators

Large differences, however, continues to exist between the “Big Six” negotiators. These include a number of details, like the tax package's total size. Two important GOP members in the Senate have tentatively consented on September 19th on the scope of the tax cuts. The latter would tot up to about one trillion dollars for the budget resolution of the chamber. These activities that came as a statement is prepared by the Big Six on the status of the talks. Conflicting statements about how much detail can be expected are made by Kevin Brady, the House Ways and Means Committee, and Steven Mnuchin, the Treasury Secretary. Officials aware of the talks have warned that tax overhaul continued to be extremely fluid. The situation could vary numerous times in the near future.

The Big Six, in a sign of putting an important change in their tactics, have started to rethink their plans of cutting taxes imposed on the rich. Other than Brady and Mnuchin, other group members are Paul Ryan, the House Speaker, Mitch McConnell, the Senate Majority Leader, Orrin Hatch, the Senate Finance Chairman and Gary Cohn, the National Economic Council Director.

Tax cuts

According to Hatch, the lawmakers are not much interested in slashing taxes for wealthy individuals. They prefer to go for a tax cut which will benefit the middle class. His comments were made after President Donald J. Trump said that the rich will not benefit much from this plan.

According to Democratic Representative Richard Neal, the President seems to be much more interested in the tax position assumed by Democrats. The Representative from Massachusetts is the top Democrat having a seat on Ways and Means Committee. He said that it is quite clear that Trump will take the path to 2001 and also 2003-kind style tax cuts.

For the GOP, they must rethink most of the tax plans. These would presently assist the wealthy in a number of ways, like slashing tax rates for top income earners and the elimination of the estate taxes.

Leave a Comment