INTERVIEW — STEVE MOORE – economist at the Heritage Foundation — explained the GOP tax plan on WMAL’s “Mornings on the Mall” with Vince Coglianese and Mary Walter.
- Ryan says election results make passing tax cuts more important because GOP promised them.Worse-than-expected defeats of Republicans in Virginia elections Tuesday night make it more urgent for Congress to pass tax cuts because the party promised them in the 2016 election, House Speaker Paul Ryan said Wednesday.”I fundamentally believe when we deliver on comprehensive tax reform and tax relief, especially for middle income families, people will see their paychecks going up, they’ll see faster economic growth, better jobs being created,” the Wisconsin Republican said during a breakfast forum sponsored by the Washington Examiner. “I think that’s going to bear fruit politically, but most importantly it’s going to help people. That’s the promise we made. If anything, this puts more pressure on making sure we follow through,” Ryan said.
- Senate Republicans Will Diverge From House in Sweeping Tax Rewrite. (NY Times) – WASHINGTON — Senate Republicans, under pressure to pass a sweeping tax rewrite before year’s end, are expected to unveil legislation on Thursday that would eliminate the ability of people to deduct state and local taxes but would stop short of fully repealing the estate tax, according to lobbyists and other people familiar with the bill. The Senate plan is taking shape as Republicans digest the drubbing they suffered on Tuesday night in affluent suburbs across the country, many of them represented by Republicans in the House. Those areas are stocked with well-off voters who would be disproportionately hit by the elimination of state and local tax deductions. But in the Senate, those high-tax areas are often represented by Democrats, which puts less pressure on Republican leaders to keep the state and local deduction, in any form, in their version of the bill. Each of the bills reflects delicate political and fiscal calculations as Republican leaders seek to deliver on President Trump’s campaign promises to cut taxes on the middle class and on businesses — but also find the money to pay for them. Eliminating the state and local tax deduction would increase tax receipts and therefore lessen the overall cost of the legislation, which by congressional budget rules cannot exceed $1.5 trillion over the next decade if it is to pass without Democratic support. After the elections, Republicans understand they have to pass a tax bill in order to show a significant accomplishment. Big losses in Virginia and New Jersey on Tuesday exposed their vulnerabilities going into next year’s midterm elections.
