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- Mueller Expanding Probe to RNC
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- Fox News Host Says Mueller Should be ‘Handcuffed’
Rushed GOP Tax Bill Has Big Problems
Republicans were so determined to pass their tax plan that they apparently missed some big time problems with the bill that are going to have to be resolved before it can be brought back up for a vote.
One major issue revolves around the alternative minimum tax (AMT) and the effect that repealing it would have on revenues. Former deputy director of the National Economic Council Lily Batchelder said that the Senate GOP’s math was off by more than $250 billion in its estimates of the impact.
Appears corporate AMT provision probably raises >$300B, not $40B JCT estimated under duress Fri night. This means Rs have to take Senate bill to conference and can’t just have House pass it, unless they want to *really* piss off bus community. 1/5
— Lily Batchelder (@lilybatch) December 6, 2017
That’s right. Rather than a shortfall of $40 billion, the country could see losses of nearly $300 billion by repealing the AMT. But there’s a certain budget window that the GOP has to make the bill fit inside in order to pass it, so they will have to make up that revenue somewhere — likely by increasing some tax rates or doing away with even more deductions.
Politico reports that there are other problems with the bill as well.
Some provisions are so vaguely written they leave experts scratching their heads, like a proposal to begin taxing the investment earnings of rich private universities’ endowments. The legislation doesn’t explain what’s considered an endowment, and some colleges have more than 1,000 accounts.
On the face of it, the fact that such glaring flaws are in a bill that managed to pass the U.S. Senate should be surprising. But when you factor in the reality that Senators only had an hour to read a bill that’s nearly 500 pages long, it becomes easy to see how these types of things could have been overlooked. It’s almost as if drafting a bill in secret and then rushing it to a vote without so much as a committee hearing has unintended negative consequences.
Don’t expect Republicans to learn from that mistake, though. This new “process” seems to be their go-to model for passing legislation.