Here are the details of this news
Republicans are scrambling to make gigantic changes to their tax bill that could include future tax hikes
Mitch McConnell Alex Wong/Getty Images
- The Senate Parliamentarian ruled that the GOP's "trigger" idea for their tax bill would not comply with Senate rules.
- Republicans are now scrambling to find alternatives to win over members concerned about its potential effect on the deficit.
- The Senate is expected to vote on the tax bill late Thursday or early Friday.
Senate Republicans on Thursday furiously scrambled to rewrite parts of their massive tax legislation after the Senate rule-keeper threw a last-minute wrench in their plan.
Drama erupted on the chamber's floor late Thursday afternoon when the Senate parliamentarian said a provision that was set to be included in the bill did not comply under Senate rules. The provision would have triggered a reversal of the tax cuts included in the legislation if the bill did not generate economic growth and added too much to the federal deficit.
The parliamentarian is a sort of umpire for the Senate rules, especially for bills like the tax plan that are going through the budget reconciliation process. That process allows the GOP to pass the bill with a simple majority vote, but it also means that all parts of the bill must abide by strict rules.
The "trigger" was conceived by Republican Sens. Bob Corker, Jeff Flake, and James Lankford. The trio expressed concerned that the bill would not generate enough economic growth to make up for its projected revenue shortfall from massive tax cuts. The "trigger" would have automatically increased revenue (likely by raising taxes in some way) to make sure the deficit did not balloon out of control.
Sen. John Cornyn, the second-highest ranking GOP member, said that in lieu of a trigger, Republicans were considering a "stair step" for the corporate tax rate. Currently, the Tax Cuts and Jobs Act (TCJA) would slash the corporate rate to 20% from 35%.
that the "stair step" would gradually increase that rate on an annual basis to make up revenue and ensure the deficit did not grow too large.
Here’s how the “stairstep” to cover deficits could work in tax bill. Start the corporate rate at 20%. Then hike rate each yesr automatically, not based on economic conditions. In other words, it starts as a tax break. Then becomes a tax increase— Chad Pergram (@ChadPergram) November 30, 2017
“It doesn’t look like the trigger is going to work, according to the parliamentarian,” Cornyn told reporters, according to Politico. “So we have an alternative, frankly: a tax increase we don’t want to do to try to address Sen. Corker’s concerns.”
Other ideas are also being floated. Sen. John Hoeven Hoeven says Republicans considering an AMT for C corps and high income individuals to raise around $500b since triggers won’t fly
that members are discussing an alternative minimum tax, essentially an alternate formula for taxes that is less generous, for large C-corporations and rich individuals.
Hoeven says Republicans considering an AMT for C corps and high income individuals to raise around $500b since triggers won’t fly— Alan Rappeport (@arappeport) November 30, 2017
A final vote on the tax bill is expected late Thursday night or Friday.
This news has been forwarded, and the source is responsible for the authenticity of this news, whether it is true or false, if you have any query or appeal in this news please email us