The House will vote this month on a bill to make permanent the individual tax cuts enacted in December, Republican leaders said Wednesday.
Speaker Paul Ryan, R-Wis., and Majority Leader Kevin McCarthy, R-Calif., will not wait for the post-election “lame duck” session to take up the measure, despite opposition from some Republicans who oppose a provision capping state tax deductions.
The bill will be “on the floor” in September for a vote, McCarthy and Ryan said.
“We will make those tax cuts permanent,” Majority Whip Steve Scalise, R-La., said. Under the law signed by President Trump in December, the cuts are set to expire at the end of 2025. – READ MORE
[divider][/divider]The U.s. Treasury Department Issued Proposed Rules On Thursday To Nix California’s Scheme To Avoid The New $10,000 Limit On State And Local Tax Deductions By Claiming Taxes Are Charitable Donations.
President Donald Trump promised in December 2017 that his $1.5 trillion Tax Cuts and Jobs Act tax-reform package would unleash a new era of American prosperity by cutting the tax burden for the typical family of four earning $75,000 by $2,000. The tax cuts also aimed to drive up the average household income by $4,000 through simulative cuts on business by permanently trimming the top corporate rate from 35 percent to 21 percent.
To fund part of the resulting revenue loss, the Republican-controlled U.S. House of Representatives limited federal deductions for state and local taxes (SALT) to $10,000 for the first time. The move hammered high income tax-payers in Democrat-dominated high-tax blue states like California, Illinois, New York and New Jersey.
According to the Tax Policy Institute, the first-time ever cap on SALT deductions was expected to generate $36.1 billion more in federal tax collections in 2018. But the pain to high-income tax-payers in California and the other so-called “deep-blue” states doubles to $74.5 billion in 2021 and almost triples to $100.4 billion by 2025. – READ MORE
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