A tax bill on The Resolute? Administration aides continue to walk back President Trump’s recent suggestions that a tax bill may not be completed until 2018. OMB Director Mick Mulvaney says a bill will reach President Trump’s desk by December. Mulvaney and many conservative groups want the House to agree quickly on the Senate budget resolution, especially its tax provisions. That could save “as many as 10 or 12 legislative days, which is a big deal,” the budget director says. Trump is now back in 2017 mode. He told Fox Business Network that when it comes to Thanksgiving or Christmas, “I don’t even like them leaving… I want to get it by the end of the year, but I’d be very disappointed if it took that long.”
Details about pre-tax retirement savings? Will the GOP lower the amount a taxpayer can contribute to a traditional 401(k)? The Wall Street Journal reports that Republicans are talking about it, but it’s not clear where they’d set the contribution limit, or whether it would apply to 401(k)s, IRAs, or both. Under current law, employees under age 50 can save up to $18,000 in pre-tax earnings a year in a 401(k). That limit is $24,000 for those over 50. IRA contribution limits are $5,500 and $6,500 for the under-50 and over-50 groups, respectively.
A fourth tax bracket? Speaker of the House Paul Ryan told CBS News This Morning that it will be part of the House bill since a fourth tax bracket would ensure “high income earners do not see a big rate cut.” Without a fourth bracket, high-income earners would see a top marginal tax rate of 35 percent under the Big Six Unified Framework, down from the current 39.6 percent.
To know the fate of tax preferences? GOP tax writers are still scrambling to pay for their rate cuts, whatever they’ll be. Senator Bob Corker says that not paying for them is a deal breaker. “Otherwise, we don’t have tax reform.” However, Corker did vote for the Senate budget resolution that opened the door to $1.5 trillion in unfunded tax cuts.
Revenue-neutrality through economic growth? Senate Majority Leader Mitch McConnell told CNN’s State of the Union that “this pro-growth tax reform” will offset the cost of the tax cuts in the GOP plan. (TPC's Bill Gale explains why that isn't likely to happen.) In the same interview, McConnell indicated, “We’re just beginning the process of actually crafting the bills… It’s way too early to predict the various details.”
Some presidential focus? Politico reports that President Trump is pushing for a bipartisan working group on tax reform—an idea already ruled out by GOP lawmakers. He’s also brought back the idea of using tax reform revenue to finance an infrastructure program. The GOP said no to that months ago.
A health care deal? Senate Minority Leader Chuck Schumer says all 48 Democrats would vote for the Alexander-Murray bill that would extend cost-sharing reduction subsidies under the Affordable Care Act. Said McConnell: “I'm not certain yet what the president is looking for here, but I'll be happy to bring a bill to the floor if I know President Trump would sign it.”
Happy taxpayers in Canada? Prime Minister Justin Trudeau faces a backlash against some of his proposed tax measures. He wants to change the way businesses can distribute dividends to family members as well as the tax treatment of profits not paid out in dividends. But doctors, financial planners, farmers, and small-business owners say these changes would hurt middle-class taxpayers—who Trudeau says he wants to help.
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