US Republicans call for more tax cuts US Republicans call for more tax cuts

US Republicans call for more tax cuts
18 Sep 2018

Republicans in the US House of Representatives have proposed more tax cuts, an effort seen by many as aimed mainly at winning votes.

However, there is opposition from a number of Republicans, mainly from members fighting to keep hold of seats in suburban districts where President Donald Trump is most unpopular.

Under the measure, federal individual income tax cuts approved on a temporary basis in December by Trump and the Republican-controlled Congress would become permanent. The move would also eliminate the maximum age for some retirement account contributions and let new businesses write off more start-up costs.

A full House vote the Tax Reform 2.0 package is expected by October 1.

While Trump is touting December’s tax cuts as a boost to the economy, Democrats say they mainly helped the wealthy and corporations.

"With version 2.0 of the GOP tax scam for the rich, Republicans want to add even more to the deficit, and even more to the bank accounts of the wealthiest 1 percent," said House Democratic leader Nancy Pelosi.

The cuts are projected to add an estimated US$1.5 trillion over a decade to the federal deficit. And, said the Tax Foundation, a pro-business think tank in Washington, the new round being proposed by Republicans would add a further US$576 billion to the deficit. 

"Adding another several hundred billion dollars to the deficit is something that I think some Republicans are going to really think hard about," John Gimigliano, who heads federal tax legislative and regulatory services at KPMG, told Reuters.

Under Trump and the Republican-controlled Congress, the federal deficit has begun growing rapidly again and is expected to top US$1 trillion in 2019.

The House Republican preview of the new bill also floated a range of new tools for families to increase savings, according to Politico. These include creating a new Universal Savings Account and making it easier to contribute to Individual Retirement Accounts.

 

Sources: Reuters, Politico

Republicans in the US House of Representatives have proposed more tax cuts, an effort seen by many as aimed mainly at winning votes.

However, there is opposition from a number of Republicans, mainly from members fighting to keep hold of seats in suburban districts where President Donald Trump is most unpopular.

Under the measure, federal individual income tax cuts approved on a temporary basis in December by Trump and the Republican-controlled Congress would become permanent. The move would also eliminate the maximum age for some retirement account contributions and let new businesses write off more start-up costs.

A full House vote the Tax Reform 2.0 package is expected by October 1.

While Trump is touting December’s tax cuts as a boost to the economy, Democrats say they mainly helped the wealthy and corporations.

"With version 2.0 of the GOP tax scam for the rich, Republicans want to add even more to the deficit, and even more to the bank accounts of the wealthiest 1 percent," said House Democratic leader Nancy Pelosi.

The cuts are projected to add an estimated US$1.5 trillion over a decade to the federal deficit. And, said the Tax Foundation, a pro-business think tank in Washington, the new round being proposed by Republicans would add a further US$576 billion to the deficit. 

"Adding another several hundred billion dollars to the deficit is something that I think some Republicans are going to really think hard about," John Gimigliano, who heads federal tax legislative and regulatory services at KPMG, told Reuters.

Under Trump and the Republican-controlled Congress, the federal deficit has begun growing rapidly again and is expected to top US$1 trillion in 2019.

The House Republican preview of the new bill also floated a range of new tools for families to increase savings, according to Politico. These include creating a new Universal Savings Account and making it easier to contribute to Individual Retirement Accounts.

 

Sources: Reuters, Politico

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