“With a bit of a mind flip.” In an effort to mollify House Republicans from states such as California and New York, Ways & Means Committee Chair Kevin Brady says his soon-to-be released tax bill will preserve the deduction for property taxes. In a statement first reported by Bloomberg, Brady did not say if the proposal would include any limits to the property tax deduction.
“You’re into the time slip.” That change apparently won’t be enough to hold on to buy-in from the National Association of Home Builders. It won’t support the GOP tax bill, reports The Wall Street Journal (paywall). Even if the bill preserves the property tax deduction, it will likely call for a near-doubling of the standard deduction, a provision that would make the itemized deductions for mortgage interest and property taxes irrelevant for many households.
“And nothing can ever be the same.” Or, it can. TPC released its dynamic analysis of the Big Six tax framework on Friday and found no significant medium- or long-term effects on the economy, despite President Trump’s promise of permanent GDP growth of 3 percent. TPC’s Howard Gleckman explains that “while the Framework’s tax rate cuts would generate new economic activity at first, those growth effects would be washed out in a few years by the effects of higher budget deficits…. The framework would reduce federal tax revenue by roughly $2.4 trillion over the next decade, nearly the same as under conventional scoring.”
“You’re spaced out on sensation, like you’re under sedation.” Companies and trade groups are enlisting workers to lobby for a tax bill. The Wall Street Journal reports (paywall) that firms are collecting employee contact information and generating form letters to legislators. Employees are an increasingly potent force when it comes to lobbying, but a nagging question remains: Are they coerced into political activity by their bosses?
“Let’s do the time warp again.” Maybe that’s what President Trump wishes for, given his approval ratings during his push for a tax code overhaul. The latest NBC News/Wall Street Journal poll shows that his public support has hit its lowest point yet, just 38 percent. By contrast, in the run-up to enactment of the Tax Reform Act of 1986 President Reagan’s approval rating held steady in the mid-to-high sixties.
“It’s just a jump to the left.” Or at least, a jump out of the Senate. Senate Finance Committee Chair Orrin Hatch tells friends he plans to retire at the end of his term next year, reports The Atlantic. If he does, Mitt Romney may run to replace him.
“And then a step to the right.” Right back to TPC, that is, for the second Distinguished Speaker event. IRS Commissioner John Koskinen will join TPC director Mark Mazur to reflect on Koskinen’s four years at the IRS and address challenges facing tax administration. You can view the live webcast here starting at 9:30 am tomorrow. Happy almost-Halloween!
Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, email us.
Posts and Comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2016.