Senate OKs tax bill as Trump, GOP near big legislative win
Senate OKs tax bill as Trump, GOP near big legislative win
“Big bills are rarely popular. You remember how unpopular ‘Obamacare’ was when it passed?” Senate Majority Leader Mitch McConnell, R-Kentucky, said in an interview, shrugging off polls showing scant public enthusiasm for the measure. He said the legislation would prove to be “just what the country needs to get growing again.”
Senate approval came on a 51-49 roll call with Sen. Bob Corker, R-Tennessee, the only lawmaker to cross party lines. The measure focuses its tax reductions on businesses and higher-earning individuals, gives more modest breaks to others and offers the boldest rewrite of the nation’s tax system since 1986.
Republicans touted the package as one that would benefit people of all incomes and ignite the economy. Even an official projection of a $1 trillion, 10-year flood of deeper budget deficits couldn’t dissuade GOP senators from rallying behind the bill.
“Obviously I’m kind of a dinosaur on the fiscal issues,” said Corker, who battled to keep the bill from worsening the government’s accumulated $20 trillion in IOUs.
The Republican-led House approved a similar bill last month in what has been a stunningly swift trip through Congress for complex legislation that impacts the breadth of American society. The two chambers will now try crafting a final compromise to send Trump.
After spending the year’s first nine months futilely trying to repeal President Barack Obama’s health care law, GOP leaders were determined to move the measure rapidly before opposition Democrats and lobbying groups could blow it up. The party views passage as crucial to retaining its House and Senate majorities in next year’s elections.
Democrats derided the bill as a GOP gift to its wealthy and business backers at the expense of lower-earning people. They contrasted the bill’s permanent reduction in corporate income tax rates from 35 percent to 20 percent to smaller individual tax breaks that would end in 2026.
Congress’ nonpartisan Joint Committee on Taxation has said the bill’s reductions for many families would be modest and said by 2027, families earning under $75,000 would on average face higher, not lower, taxes.
The bill is “removed from the reality of what the American people need,” said Senate Minority Leader Chuck Schumer, D-N.Y. He criticized Republicans for releasing a revised, 479-page bill that no one can absorb shortly before the final vote, saying, “The Senate is descending to a new low of chicanery.”
“You really don’t read this kind of legislation,” Sen. Ron Johnson, R-Wisconsin, told home-state reporters, asked why the Senate was approving a bill some senators hadn’t read. He said lawmakers needed to study it and get feedback from affected groups.
Democrats took to the Senate floor and social media to mock one page that included changes scrawled in barely legible handwriting. Later, they won enough GOP support to kill a provision by Sen. Pat Toomey, R-Pennsylvania, that would have bestowed a tax break on conservative Hillsdale College in Michigan.
The bill hit rough waters after the Joint Taxation panel concluded it would worsen federal shortfalls by $1 trillion over a decade, even when factoring in economic growth that lower taxes would stimulate. Trump administration officials and many Republicans have insisted the bill would pay for itself by stimulating the economy. But the sour projections stiffened resistance from some deficit-averse Republicans.
But after bargaining that stretched into Friday, GOP leaders nailed down the support they needed in a chamber they control 52-48. Facing unyielding Democratic opposition, Republicans could lose no more than two GOP senators and prevail with a tie-breaking vote from Vice President Mike Pence, but ended up not needing it.
Leaders’ changes included helping millions of companies whose owners pay individual, not corporate, taxes on their profits by allowing deductions of 23 percent, up from 17.4 percent. That helped win over Wisconsin’s Johnson and Steve Daines of Montana.
People would be allowed to deduct up to $10,000 in property taxes, a demand of Sen. Susan Collins of Maine. That matched a House provision that chamber’s leaders included to keep some GOP votes from high-tax states like New York, New Jersey and California.
The changes added nearly $300 billion to the tax bill’s costs. To pay for that, leaders reduced the number of high-earners who must pay the alternative minimum tax, rather than completely erasing it. They also increased a one-time tax on profits US-based corporations are holding overseas and would require firms to keep paying the business version of the alternative minimum tax.
Sen. Jeff Flake, R-Arizona — who like Corker had been a holdout and has sharply attacked Trump’s capabilities as president — voted for the bill. He said he’d received commitments from party leaders and the administration “to work with me” to restore protections, dismantled by Trump, for young immigrants who arrived in the US illegally as children. That seemed short of a pledge to actually revive the safeguards.
The Senate bill would drop the highest personal income tax rate from 39.6 percent to 38.5 percent. The estate tax levied on a few thousand of the nation’s largest inheritances would be narrowed to affect even fewer.
Deductions for state and local income taxes, moving expenses and other items would vanish, the standard deduction — used by most Americans — would nearly double to $12,000 for individuals and $24,000 for couples, and the per-child tax credit would grow.
The bill would abolish the “Obamacare” requirement that most people buy health coverage or face tax penalties. Industry experts say that would weaken the law by easing pressure on healthier people to buy coverage, and the nonpartisan Congressional Budget Office has said the move would push premiums higher and leave 13 million additional people uninsured.
Taliban rejects pleas by Afghan elders for a cease-fire extension
- Taliban spokesman Zabihullah Mujahid dismissed the peace “slogans”
- The success of such local initiatives is mixed and may stand little chance as military operations pick up
KABUL: The Taliban on Monday rejected pleas by Afghan elders and activists for an extension of this month’s cease-fire and said they amounted to a call for surrender to foreign forces.
Taliban spokesman Zabihullah Mujahid dismissed the peace “slogans” and urged civil society activists and others not to join movements he said played into the hands of US and international forces the Taliban wants to force from the country.
“They are not speaking about the occupation or the withdrawal of foreigners. Their objective is that we lay down our weapons and accept the regime imposed by the invaders,” he said in a statement.
A truce over the three day Eid Al-Fitr festival this month, during which unarmed Taliban fighters mingled with soldiers and civilians in the capital Kabul and other cities has given fresh impetus to the calls for peace, although many also dismiss the cease-fire as a Taliban trick.
A small group of peace marchers who came to Kabul on foot from the southern province of Helmand this month have also gained prominence, with pleas to all sides to end a conflict which has now lasted for 40 years.
“Tribal elders may not be able to bring about peace and create a cease-fire to the whole country but they can for their own districts and they will,” said Dawlat Wazir, an elder in Jani Khil district in the eastern province of Paktia.
In Jani Khil, elders held a meeting that drew hundreds of people at the weekend, calling on the government and Taliban forces to refrain from fighting in their area.
“We are so fed up with operations by government forces in our areas that trigger fighting for days,” said Malek Sakhto, one of the elders behind the meeting. “We’re pleading with the government and the Taliban to agree on a cease-fire and stop killing each other and civilians.”
The success of such local initiatives is mixed and may stand little chance as military operations pick up.
President Ashraf Ghani ordered government forces to stop offensive operations against the Taliban for another 10 days after the end of the cease-fire but there has since been fierce fighting in several areas.
In Logar, to the south of the capital Kabul, local elders and religious scholars have been trying to arrange a cease-fire in Azra district, according to Abdul Wali, a member of the Logar provincial council.
He said an informal accord had been reached but local people were still waiting for an official announcement from the Taliban shadow governor for Logar, Muallah Ismail Akhondzada.
In Kunar province, on the border with Pakistan, another group of walkers is making its way to Kabul, a statement from the governor’s office said.