cloudy
Tuesday November 21st, 2017 1:19AM

'Monumental challenge' as action begins on GOP tax bill

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — The chairman of the House Ways and Means committee warned of a "monumental challenge" ahead Monday as his panel began work on far-reaching GOP tax legislation that would slash corporate rates and add $1.5 trillion to the nation's ballooning debt. The bill represents the top legislative goal for President Donald Trump and congressional Republicans eyeing tough midterm elections next year.

As Democrats slammed the legislation as a giveaway to the rich, Rep. Kevin Brady asserted that his bill would increase wages and take-home pay for the middle class while simplifying a loophole-ridden tax code.

"This is our moment to make transformational tax reform a reality," Brady said as his panel opened what promises to be a multiday session to amend the legislation and ultimately send it to the full House by week's end. Leaders hope to pass it through the House by Thanksgiving.

The committee's top Democrat, Richard Neal of Massachusetts, countered that the bill "puts the well-connected first while forcing millions of American families to watch while their taxes go up." He complained that Republicans crafted it in private without input from Democrats.

The tax proposal is the first major rewrite of the U.S. tax code in three decades, mixing sharp tax cuts for corporations and businesses with more modest relief for individuals. An inflation change to tax brackets announced Friday reduced the tax cut to individuals by $89 billion over 10 years.

The measure is enthusiastically backed by Trump, House GOP leaders and many rank-and-file Republicans, who are promising a simpler IRS code, a more globally competitive business tax structure, and tax cuts for the middle class and families with children.

But there's considerable trepidation as well. Many earners in the upper-middle class, especially those from high-tax states, are facing tax increases.

In examining the GOP's tax bill, Congress' Joint Committee on Taxation projected that the expiration of certain tax breaks would result in tax increases for some income groups in some years.

An analysis from the liberal Center on Budget and Policy Priorities said the committee's projections showed the tax cuts would overwhelmingly benefit the wealthiest households. Meanwhile, the joint committee's analysis indicated that tax filers with incomes of $20,000 to $40,000 would pay higher individual income taxes in 2023 and each year thereafter, as would filers with incomes of $200,000 to $500,000.

"They give with one hand and take away with the other," said Minority Leader Nancy Pelosi, D-Calif.

The bill would telescope today's seven personal income tax brackets into four: 12 percent, 25 percent, 35 percent and 39.6 percent. The 25 percent rate would start at $45,000 for individuals and $90,000 for married couples.

The standard deduction — used by people who don't itemize, around two-thirds of taxpayers — would nearly double to $12,000 for individuals and $24,000 for couples. That's expected to encourage even more people to use the standard deduction with a simplified tax form Republicans say will be the size of a postcard.

  • Associated Categories: U.S. News, Associated Press (AP), AP National News, AP Online National News, Top U.S. News short headlines, Top General short headlines, AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Personal Finance
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Town weighing effects of taller buildings near Grand Canyon
Residents of a small town outside the Grand Canyon are voting on raising building heights at the request of Italian real estate company that long has eyed development there
12:58PM ( 14 minutes ago )
'Monumental challenge' as action begins on GOP tax bill
House Ways and Means Committee Chairman Kevin Brady cited a "monumental challenge" ahead as his panel began considering a sweeping GOP tax cut bill that congressional leaders and the White House hope to push through the House before Thanksgiving
12:53PM ( 19 minutes ago )
The Latest: Tourism chief sees 10-12 pct drop in Catalonia
Catalonia's top tourism official reckons tourism revenues in the restive Spanish region could be around 450 million euros ($520 million) lower in the final quarter of the year
12:49PM ( 23 minutes ago )
Associated Press (AP)
The Latest: Texas church gunman had 3 guns; no carry license
The special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Houston says three guns have been recovered from the suspect in the deadly church shootings in Texas
12:25PM ( 46 minutes ago )
Police: Texas church attack stemmed from domestic situation
Investigators say Texas church attack stemmed from domestic situation
12:23PM ( 49 minutes ago )
Michigan State's Bridges tops AP preseason All-America team
Michigan State's Miles Bridges headlines The Associated Press preseason All-America team
12:01PM ( 1 hour ago )
AP National News
The Latest: Sheriff: Gunman had self-inflicted gunshot wound
Authorities believe the man suspected of killing 26 people and injuring about 20 others at a Texas church shot himself following a car wreck
11:12AM ( 2 hours ago )
Manager: Church gunman worked as security guard at resort
A manager at a vacation resort says the gunman who opened fire on a Texas church worked for the resort as security guard
10:47AM ( 2 hours ago )
Texas officials confirm suspect's ID as Devin Patrick Kelley
Officials in Texas have confirmed the identity of the man suspected of killing 26 people at a South Texas church
10:05AM ( 3 hours ago )
Top U.S. News short headlines
Amid intrigue, Saudi king receives Lebanon's outgoing PM
Saudi King Salman meets Lebanon's outgoing prime minister who abruptly resigned during the trip to the kingdom
12:25PM ( 48 minutes ago )
Menendez lawyer assails bribery case in closing to jury
A lawyer for Sen. Bob Menendez tells jurors at his bribery trial that the prosecution's case is built on assumptions and speculation
11:56AM ( 1 hour ago )
Judge puts off removing ex-Trump aides from house arrest
A federal judge is hearing arguments on whether Paul Manafort, President Donald Trump's former campaign chairman, can be removed from home confinement as the criminal case against him moves forward
11:13AM ( 1 hour ago )
AP Online Headlines - Washington
House GOP weighs repeal of health mandate in tax bill
The House tax-writing committee is kicking off debate on a 429-page GOP tax overhaul plan in hopes of having it ready for a vote by the full House next week
3:40AM ( 9 hours ago )
Brazile strains Dem unity ahead of key gov race in Virginia
Democrats are having trouble putting behind differences over the bitter 2016 election amid new revelations of a possible effort to replace Hillary Clinton as the presidential nominee
3:29AM ( 9 hours ago )
Brazile stirs Dem party strife as bellwether gov race nears
Democrats are struggling to put the bitter 2016 election behind them as the party's current chairman and his predecessor bicker over Hillary Clinton's failed campaign
8:35PM ( 16 hours ago )
AP Online Congress News
Stocks inch up on chipmaker deal talks; oil hits 2-year high
US stocks are slightly higher as reports of possible deals for chipmakers, including Broadcom's $103 billion offer for Qualcomm, gives technology companies a boost
12:19PM ( 54 minutes ago )
The Latest: Saudi probe says crimes uncovered, trials ahead
Saudi Arabia's newly-established anti-corruption committee overseeing the arrests of top princes and officials says evidence of widespread corruption has been uncovered
11:57AM ( 1 hour ago )
Israeli PM pledges West Bank bypass roads for settlers
Israeli Prime Minister Benjamin Netanyahu pledges 200 million shekels ($57 million) to build safe bypass roads for Jewish West Bank settlers
11:51AM ( 1 hour ago )
AP Business
In high-tax states, worries about pain from GOP tax plan
In high-tax New Jersey, there are worries that the GOP tax cut plan could actually increase bills
5:20PM ( 2 days ago )
House GOP revises tax bill, makes it less generous
House GOP revises tax bill, makes it less generous for many Americans
4:54PM ( 2 days ago )
Trump seeks end to health care penalty in House GOP tax bill
President Donald Trump is pressuring Republicans to repeal a health care law penalty in their tax rewrite, a step the House's top tax writer indicates is politically problematic
2:21PM ( 2 days ago )
AP Business - Personal Finance
Town weighing effects of taller buildings near Grand Canyon
Residents of a small town outside the Grand Canyon are voting on raising building heights at the request of Italian real estate company that long has eyed development there
12:58PM ( 16 minutes ago )
The Latest: Tourism chief sees 10-12 pct drop in Catalonia
Catalonia's top tourism official reckons tourism revenues in the restive Spanish region could be around 450 million euros ($520 million) lower in the final quarter of the year
12:49PM ( 24 minutes ago )
McConnell: Paul's absence another possible challenge for GOP
Senate Majority Leader Mitch McConnell says fellow Kentucky Sen. Rand Paul's absence from the Senate while recovering from an assault creates another challenge for a slim Republican majority trying to pass tax overhaul legislation.
12:40PM ( 33 minutes ago )
Susan Linnee, ex-AP bureau chief in Madrid and Nairobi, dies
Susan Linnee, groundbreaking Associated Press bureau chief in Spain and Kenya, has died at age 75
12:38PM ( 35 minutes ago )
Anthony Weiner reports to prison for sexting conviction
Former New York Rep. Anthony Weiner has reported to prison to begin a 21-month sentence for sexting with a 15-year-old girl
12:31PM ( 42 minutes ago )