Republican lawmakers have been in hot water with voters for their inability to come together on major campaign promises, some of which they have been promising for almost a decade.
According to Fox Business, House Republicans managed to narrowly pass a major measure Thursday towards improving American lives. They approved the 2018 budget, the first step in the fight for tax reform.
The budget narrowly passed in the House on a 216-212 vote, with every Democrat and 20 Republicans voting against. It comes after the Senate approved the same budget bill with a similarly narrow 51-49 vote.
This budget approval will enable Republicans to bypass filibusters by Democrats in the Senate meant to oppose any tax reform bills they roll out, potentially allowing them to pass these bills regardless of the Democrat vote.
It also represents a timely victory for Republicans who have come under fire from constituents upset about their inability to repeal Obamacare. Paving the way for tax reform will go a long way in smoothing over flustered voters and help secure re-elections in upcoming votes.
The tax bill, expected to be released by the House Ways & Means Committee in November, would deliver a huge boost to an economy that has long suffered under Democrat, liberal and progressive policies. The plan Republicans are seeking to deliver will cut corporate taxes to 20 percent, with other measures meant to incentivize business growth in the US and financially benefit middle-class Americans.
Like any legislative measure, the proposed tax reform bill has both good and bad components. Business owners will clearly benefit from having a lower tax rate, but the real estate industry could take hits from the loss of interest cost deductions.
Rep. Jim Renacci (R-OH), makes the case that changes, like the corporate tax cut, will benefit more people than harm them, but warned against bowing down to outside pressure to make too many changes to tax breaks. “Any time you make a change, you’re going to have people who want to come talk about why that change is bad for them. In the end you could end up really causing some issues once you open up the door to one change,” he said.
Since the beginning, Democrats have opposed tax reform as nothing more than a means for the wealthy to benefit while the poor suffer. House Minority Leader Nancy Pelosi (D-CA) has made this argument time and time again. “This is just tax cuts for the rich. This is not tax reform. It’s not what our values are about. It’s really a shame,” the progressive Congresswoman said.
Yet there’s no denying that the economy suffered under former President Obama and many corporations have moved overseas due to burdensome regulations and tax hikes executed by Democrats. With a Republican tax reform, these same corporations will be incentivized to return to the US to operate their businesses, bringing with them additional jobs and tax revenue.
The House passed the 2018 budget which includes massive tax reform. Do you consider this a victory?
Democrats can argue that a 15 percent cut in corporate taxes is catering to the rich, but considering many businesses are paying 0 percent because they operate outside the US, having them return to pay 20 percent seems like a really good deal and a huge benefit to the generation of tax revenue.
Regardless of the downsides, there is a need for tax reform and the benefits to be derived from the proposed plan by Republicans is likely to outweigh any of the negatives. In any case, it has to be an improvement when compared to the current state of the tax system.