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Thread: Details Of Huge Error GOP Made In Their Senate Tax Bill Emerge Online--And Now They'r

  1. #1
    Moderator jacobfitcher's Avatar
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    Details Of Huge Error GOP Made In Their Senate Tax Bill Emerge Online--And Now They'r

    Senate Republicans appear to have made a $289 billion mistake in last minute additions to the tax bill they passed in the early morning hours of Saturday morning. Which, according to some experts, could result in a massive tax rise for corporations as opposed to the cuts that President Donald Trump and the Republicans were aiming for.

    The issue is around the the corporate alternative minimum tax (AMT), which is meant to stop companies from zeroing their tax bills every year. The alternative rate is lower, at 20%, but doesn't allow companies to take out as many tax breaks as the regular rate, which was 35%. Every tax year, corporations must calculate both the AMT and regular rate and pay the higher of the two.

    [snip]

    But when the GOP wrote AMT back into the bill, they left it at its current rate of 20%. Which is the same as the new, lower regular rate of corporate tax. If the bill were introduced in its current form, AMT and the regular tax rate would both be 20%, but with AMT excluding many tax breaks available under the regular rate, corporations would be forced to pay the higher AMT rate.
    Thanks from Friday13

  2. #2
    The Republican Agenda HadEnough2's Avatar
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    Bastards. I saw a Tax Bill protest sign on TV the other day. It said "Free Money if you are a millionaire."
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  3. #3
    Southern Strategy Liberal OldGaffer's Avatar
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    Even Republican economists are pillorying this dumpster fire of a bill.


    Why Economists Are Warning That The Trump Tax Plan Will Be An Epic Disaster ? Talking Points Memo
    Thanks from Friday13, HadEnough2 and jacobfitcher

  4. #4
    Civis americanus borealis Singularity's Avatar
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    The main impact of this is a conference committee + revised bill process is now mandatory, there had been some fears that in the event negotiations stall (or key Republicans decide they've been burned by the party and change their minds), Paul Ryan would be able to take the unmodified Senate bill, dump it on the House floor with no amendments, and dare his caucus to vote No. In that event, the Senate would have no further say, it would pass the House and go straight to Trump's desk.

    If there are structural problems with the bill, he loses that option. Potential holdouts in both chambers gain leverage. It will still probably pass, but it will take longer. And the longer it takes, the more political damage the Republicans will take.

  5. #5
    Veteran Member cpicturetaker12's Avatar
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    Quote Originally Posted by jacobfitcher View Post
    Senate Republicans appear to have made a $289 billion mistake in last minute additions to the tax bill they passed in the early morning hours of Saturday morning. Which, according to some experts, could result in a massive tax rise for corporations as opposed to the cuts that President Donald Trump and the Republicans were aiming for.

    The issue is around the the corporate alternative minimum tax (AMT), which is meant to stop companies from zeroing their tax bills every year. The alternative rate is lower, at 20%, but doesn't allow companies to take out as many tax breaks as the regular rate, which was 35%. Every tax year, corporations must calculate both the AMT and regular rate and pay the higher of the two.

    [snip]

    But when the GOP wrote AMT back into the bill, they left it at its current rate of 20%. Which is the same as the new, lower regular rate of corporate tax. If the bill were introduced in its current form, AMT and the regular tax rate would both be 20%, but with AMT excluding many tax breaks available under the regular rate, corporations would be forced to pay the higher AMT rate.
    I posted on this board just 4 or 5 days ago, this is going to have some 'ticking time bombs' in it, some big ugly surprises. I just had no idea it would be so SOON.

    PS They'll just STRIP more away from us. No, I'm not kidding!!
    Thanks from jacobfitcher

  6. #6
    Veteran Member HenryPorter's Avatar
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    Quote Originally Posted by OldGaffer View Post
    Even Republican economists are pillorying this dumpster fire of a bill.


    Why Economists Are Warning That The Trump Tax Plan Will Be An Epic Disaster ? Talking Points Memo
    It's a great victory. The greatest tax cut ever in the world. It is a great big wonderful turd. And they are proud of themselves.
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  7. #7
    Moderator HayJenn's Avatar
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    Quote Originally Posted by Singularity View Post
    The main impact of this is a conference committee + revised bill process is now mandatory, there had been some fears that in the event negotiations stall (or key Republicans decide they've been burned by the party and change their minds), Paul Ryan would be able to take the unmodified Senate bill, dump it on the House floor with no amendments, and dare his caucus to vote No. In that event, the Senate would have no further say, it would pass the House and go straight to Trump's desk.

    If there are structural problems with the bill, he loses that option. Potential holdouts in both chambers gain leverage. It will still probably pass, but it will take longer. And the longer it takes, the more political damage the Republicans will take.
    Yep read an article today where House members from CA, NJ and NY are all wanting to have the SALT provisions taken out of the house bill.

  8. #8
    Civis americanus borealis Singularity's Avatar
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    Quote Originally Posted by HayJenn View Post
    Yep read an article today where House members from CA, NJ and NY are all wanting to have the SALT provisions taken out of the house bill.
    The problem with that is, they will either have to scale back the tax cuts to pay for that, or gut the social safety net. They have made commitments to their donors and to the base --- the base won't notice the difference, but the right-wing media will --- on the tax cuts, and they have made commitments to Murkowski and Collins on the safety net. Others have made noise about it too but I think those are the only two who have the gumption to vote No over the matter in the Senate and knowingly kill the entire monster. Can't imagine why.

    If Jones pulls out a win on Tuesday, well, the bill probably dies as-is, because of those two votes (or some other combo constituting a pair or more.) If he doesn't as expected, lots of uncertainty. Who could be the deadly third? Not McCain apparently. The others have all fallen in line again and again when called to do so, robotically. So it probably passes.

  9. #9
    Human Bean KnotaFrayed's Avatar
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    Every minute it goes unpassed is another minute it can be read, scrutinized, have mistakes and have pass-wrecking boondoggles or enrichments for the already rich, paid for by robbing the poor and middle classes, and snuck-in hidden non-tax provisions and legislation, exposed and publicized.

    Considering that few if any have had a chance to review and check any potential consequences, like the unintended one, already found, wouldn't it seem foolhardy to move ahead without lots more review?

    Mistakes, like the one mentioned, would likely NOT make supporters of the legislation happy and the irony of electing people that work against one's own interest, would be fully illustrated, as would the obvious concerns of trying to rush/railroad something through, as a means of trying to avoid any opposition to it.

    Considering all their complaints about passage of the ACA, one might think they would have taken away some wisdom from that and not do the very thing they whined about others, doing.

    Kinda sad that America seems to becoming more and more defined by hypocrisy than any other single thing.
    Last edited by KnotaFrayed; 6th December 2017 at 11:11 PM.

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