It’s an announcement that all Americans, regardless of their political orientation, will surely appreciate.
Speaking before a Cabinet meeting, President Trump said that “We’re going to give the American people a huge tax cut for Christmas – hopefully, that will be a great, big, beautiful Christmas present,” according to Associated Press.
While speaking at the Tax Policy Center, Mr. Trump said Monday that he is planning for the proposed tax overhaul to be implemented by Christmas. He said that while all income groups would see tax reductions, on average, only nine percent of taxpayers would pay higher taxes in 2019 than under current law, while the majority of Americans would pay less in tax.
Earlier this month, House Republicans released their long-awaited legislation, a 429-page bill called “Tax Cuts and Jobs Act,” in an attempt to rewrite a tax code that’s been nigh untouched for the past 30 years. “It’s the beginning of the end of this horrible tax code,” said House Ways and Means Committee Chairman Kevin Brady (R-TX), according to The Hill.
In response, the President said that it was a “great bill. It’s going to be very special you’ll see,” adding an aggressive timeline for Congress to send the bill to his desk and that he wanted a rough draft on his desk by Thanksgiving if possible. “I want to have a bill on my desk hopefully, Kevin, by Thanksgiving if possible. I want everybody in this room, and we’ll add some others, as we sign.”
Antonia Ferrier, the spokeswoman for Senate Minority Leader Mitch McConnell (R-KY), cited a study by the Tax Foundation which found the Senate bill would produce higher wages, nearly 1 million new jobs at least $1.3 trillion in new federal revenue due to subsequent economic growth.
“The Tax Foundation has laid out in unambiguous terms how critical the Senate tax bill is to hard-working families and job creators,” Ms. Ferrier said.
The President has said that under the current proposal, the tax code would be simplified to such an extent that Americans would be able to fill out their tax returns on a form the size of a postcard. “Most Americans will be able to file taxes on a single sheet of paper,” Mr. Trump added. “The only people that aren’t going to like this are H&R Block.”
Another study found that those making less than $25,000 would get an average $50 tax reduction, with middle-income families getting reductions of $850 and those making close to a million dollars a year getting around $34,000 back in taxes.
The House recently approved a reduction in corporate and personal taxes by $1.5 trillion over the coming decade. The Senate Finance Committee proposed a similar plan shortly after, removing a requirement that Americans must have health insurance or pay a fine. Hoping that the change would satisfy some GOP moderates, it does leave the tax plan $338 billion short of revenue goals over the next 10 years.
President Trump is determined to make tax reform something Americans can celebrate this Christmas. Will Republicans in the Senate obstruct tax reform like they did the repeal of Obamacare?
Regardless, experts remain enthusiastic over how quickly the bill has been proceeding. Alec Phillips, a political economist at Goldman Sachs, raised the chances that the tax bill will pass, according to Business Insider. “The tax reform debate is moving forward faster than we or most other observers expected. While there are a number of issues that could still slow it down, or stop it altogether, we believe the odds that tax reform will be enacted by early 2018 – already our base case- have risen to 80% (from 65% previously).”
Another analyst, Chris Krueger, said that “This has probably been the best 10-day policy stretch for Congressional Republicans all year.”
With the Christmas season looming around the corner, this is a piece of good news that all Americans can appreciate.