Republicans Reiterate: Tax Reform will be Priority

Once the August recess is over, the Republicans will be going full steam ahead trying to bring in a major tax revamp. There are other pressing issues that need attention but the party has made it very clear that the tax reform will take priority over all else.  The goal is to pass the bill before year end, but so far, there is little known about what the new tax bill will contain.

Bid to gain support from public

The Republicans heading back to their home states for the recess will no doubt be looking to garner support in each of their constituencies for the tax reform bill. This does seem to be a high order given that nobody actually knows what kind of reforms will be coming about. A joint GOP statement from the White House has underlined how seriously the Republicans are taking the tax reform bill but fails to give any more clarity on the specifics of the bill itself. The biggest concern is that there are significant differences of opinion among party members themselves, which is leading to much doubt of a tax reform that meets everyone's expectations.

Revisiting the definition of the rich American

Meanwhile, experts are talking about how the recent proposals seem to be indicative that the reform will focus on redefining who a rich American is. The proposals have hinted at a move to replace the existing seven tax rate slabs with just three. While this is clear, there is no clarity on how a household will be fitted into the right tax bracket and how it will be determined which of the three rates the tax payer will pay. In addition, there is the rumor that the tax rate at the highest slab will be lowered. This was a part of the campaign promise that Trump made but so far nothing concrete has been said about this. As expected, this sparked off a lot of protests because it essentially makes for a lower tax burned on the richest Americans.

The Republicans have sought to do some damage control about these rumors by assuring that many of the tax breaks now available to rich Americans will be eliminated in the tax reform. The President's stance on tax reforms and the rest of the Party's do not seem to match exactly in many other ways as well. This has only served to further the confusion that reigns about what the new bill will encompass.

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