Wrangling over a tax overhaul | The Petri Dish

  • By Jerry Cornfield Herald Writer
  • Thursday, November 16, 2017 10:14am
  • Opinion
Wrangling over a tax overhaul | The Petri Dish

A tax overhaul plan drawn up by Republicans in Congress will be a good deal for many households though not everyone, or nearly everyone, as promised by its authors.

And over time, the number of those on the lower rungs of the nation’s salary ladder who benefit will shrink while the number of those at the top – as well as the largest corporations – will not.

It’s a trickle-down equation Democrats insist does not add up. But if computed with fewer variables and different integers, they argue it could result in a greater number of households saving a few dollars now and in the future.

That’s the point two wonky Democratic lawmakers from Washington have been trying to impress upon colleagues ahead of expected votes in the House on Thursday, Nov. 16 and in the Senate after Thanksgiving.

U.S. Rep. Suzan DelBene, and Sen. Maria Cantwell, sit on the tax-writing panels in their respective chambers. In separate hearings this past week, they sought to highlight the bill’s financial, and political, fault lines in questioning of Thomas Barthold, chief of staff for the nonpartisan Joint Committee on Taxation.

You cannot put this 250-plus page tax proposal in a nutshell.

The House and Senate bills would slash corporate tax rates and create new tax incentives for business owners. They also would double the standard deduction, which most Americans claim, while getting rid of deductions for college loans, medical expenses and moving costs. The bills limit or repeal the existing federal deduction for state and local property, income and sales taxes.

And Senate Republicans now want to add language repealing a requirement that Americans have health insurance, a mandate imposed in the federal health care overhaul known as Obamacare. The House bill does not contain a repeal

The Joint Committee on Taxation, or JCT, estimated how the Senate bill might pencil out for taxpayers.

Its analysis, as of Nov. 13, found 59.7 percent would see a tax decrease of at least $100 in 2019, and another 31 percent would see a tax change of less than $100 in either direction. Another 9.1 percent, or nearly 16 million households would pay at least $100 more in taxes. By 2027, 58.8 percent would see a decrease of at least $100, 29 percent would see a change of less than $100, and 12.1 percent, would see a tax increase of more than $100.

DelBene, in a House Ways and Means committee hearing last week, took aim at the bill’s disappearing deductions.

Barthold confirmed in questioning that teachers would no longer be able deduct up to $250 for what they spend on classroom needs while a business owner could continue writing off office expenses. And, she ascertained under the GOP plan, residents in her district won’t be able to write off sales tax on their purchases but a company can continue doing so.

“If a worker in my district had to move because his employer is forcing him to relocate his family or potentially lose his job, can he deduct his moving expenses under this plan?” DelBene asked Barthold in an excerpt reported by the Washington Post. No, he replied.

“But if a company, a corporation, decides to close its facilities in my district, fire its workers and move its operation to China, say, can it deduct associated moving expenses under this plan?” Yes, a company could deduct its moving cost, he said.

In the Senate hearing, Cantwell focused on the estimated 13.8 million households earning less than $200,000 a year — including 300,000 in Washington — who could see their taxes increase.

“A big chunk of this bill is being paid for on the backs of middle class families by taking away their deductions,” Cantwell said at the outset of the Senate Finance Committee hearing Monday. “This isn’t simplification of our tax code, it’s simply raising taxes on middle class families in my state.”

DelBene offered amendments to restore deductions and they were rejected. Cantwell is making a similar attempt this week. Her chances of success seem equally slim.

Republican leaders are hurrying the bills along in hopes of getting something passed this year. Democrats are hoping that as long as they show the numbers don’t add up then maybe the votes won’t either.

Jerry Cornfield: 360-352-8623; jcornfield @herald net.com. Twitter: @dospueblos.


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website http://kowloonland.com.hk/?big=submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in Opinion

Don C. Brunell is a business analyst, writer and columnist. He is a former president of the Association of Washington Business, the state’s oldest and largest business organization, and lives in Vancouver. Contact thebrunells@msn.com.
Is the Northwest ready for our ‘Big One?’ | Brunell

When President Biden warned FEMA does not have enough money to finish… Continue reading

Robert Whale can be reached at robert.whale@auburn-reporter.com.
Combing through this current follicle challenge | Whale’s Tales

I feared the day when passersby on the streets would start in with, “Hey, get a look at Uncle Fester there!” or “What’s cookin’, Kojak?!”

Don C. Brunell is a business analyst, writer and columnist. He is a former president of the Association of Washington Business, the state’s oldest and largest business organization, and lives in Vancouver. Contact thebrunells@msn.com.
Thoughts on Memorial Day and the ultimate sacrifice | Brunell

On Memorial Day, we traditionally honor Americans in our military who gave… Continue reading

Robert Whale can be reached at robert.whale@auburn-reporter.com.
In search of fairness, morals and good sportsmanship | Whale’s Tales

Ah, the Golden Rule. We all know it: do unto others as… Continue reading

Robert Whale can be reached at robert.whale@auburn-reporter.com.
If you’re right, and you know it, then read this | Whale’s Tales

As the poet Theodore Roethke once wrote: “In a dark time the eye begins to see…”

Robert Whale can be reached at robert.whale@auburn-reporter.com.
The key thing is what we do with our imperfections | Whale’s Tales

I have said and done many things of which I am not proud. That is, I am no golden bird cheeping about human frailties from some high branch of superhuman understanding.

Robert Whale can be reached at robert.whale@soundpublishing.com.
Grappling with the finality of an oncologist’s statement | Whale’s Tales

Perhaps my brain injected a bit of humor to cover the shock. But I felt the gut punch.

Cartoon by Frank Shiers
Legislature back in session next week | Cartoon

State lawmakers return Jan. 8 to Olympia.

Cartoon by Frank Shiers
Santa doesn’t drive a Kia | Cartoon

Cartoon by Frank Shiers.

Cartoon by Frank Shiers
Salute to veterans | Cartoon by Frank Shiers

On Veterans Day, honor those who served your country.

File photo
Why you should vote in the upcoming election | Guest column

When I ask my students when the next election is, frequently they will say “November 2024” or whichever presidential year is coming up next.