Folks it seems that we NOW have 51 Republican Senators that will vote YES to the Senate Tax Reform Bill! The only one that is up in the air is the MORON from TN that will be replaced by Marsha Blackburn in November 2018.
I know folks don’t want to click on a WAPO article so I will add more than I usually do. There was two big changes that got the Bill over the finish line. They expanded tax cuts for millions of businesses, known as pass-throughs, from 17.4% to 23%. They also are allowing Americans to deduct up to $10,000 in property taxes from federal taxable income (this piece will be easy when reconciling with the House Bill since they both have it).
They were able to save nearly $250 Billion for what was done above by not eliminating the Alternate Minimum Tax for individuals and companies. They will scale it back instead (this kills the Democrat talking points because high income earners and companies are effected by the AMT).
These changes really are going to help millions of small businesses as well as individuals. Another dagger for the Democrats!
I am going on record before the vote that is Bob Corker is the only holdout, there will be 3 to 4 Democrats that vote yes! Joe Donnelly from IN, Heidi Heitkamp from ND, Claire McCaskill from MO and Joe Manchin from WV.
From the article linked above:
Securing the final few Senate votes forced GOP leaders to add more than $250 billion in tax cuts for individuals and businesses to their tax plan. To offset some of these costs, they had to abandon efforts to fully repeal the alternative minimum tax for individuals and companies, according to a brief summary of the changes that was shared with GOP members. Instead of fully repealing the AMT, they will now try to scale it back.
GOP leaders were also working to incorporate changes from Sen. Susan Collins (R-Maine), such as allowing Americans to deduct up to $10,000 in property taxes from federal taxable income. This change would save taxpayers $148 billion over 10 years compared with an initial version of the bill, according to the document circulated by Republican lawmakers Friday afternoon.
On Friday afternoon Collins tweeted: “Delighted that the Senate has agreed to include my property tax deduction amendment, that will allow 166,000 Maine taxpayers who itemize to deduct a total of $725 million in property taxes each year.”
Key in securing Johnson’s support was a move by GOP leaders to expand tax cuts for millions of businesses, known as pass-throughs. These are companies that pass their income on to partners, owners, and investors, who in turn pay taxes on the earnings through the individual income tax portion of the tax code.
Senate GOP leaders had proposed allowing these investors to deduct 17.4 percent of their income from their taxes and then pay taxes on the remaining income. Johnson and Sen. Steve Daines (R-Mont.) argued for days that this was not generous enough for these businesses, and GOP leaders reluctantly raised the deduction level to 20 percent, which added roughly $60 billion to the size of the tax cut. But Johnson continued holding out, and on Friday GOP aides suggested the deduction had been raised to 23 percent.
On Friday, Johnson confirmed that the change to 23 percent won his support for the bill, meaning that he and Daines were able to extract $114 billion in tax cuts for these firms in just a few days.