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uncledad

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Member since: Tue May 13, 2014, 06:50 PM
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From the washington examiner

Senate Republicans revealed an amended tax reform bill late Tuesday night that would phase out the individual tax reductions in order to make the budget math work.

In the altered bill released by Senate Finance Committee Chairman Orrin Hatch, R-Utah, all the tax breaks on the individual side of the code — including the lower tax rates, doubled standard deduction, expanded child tax credits, and tax cuts for noncorporate businesses -- would revert back in 2025. The only major individual change that would remain in place is a stingier measure of inflation that would effectively raise taxes over time by pushing families into higher tax brackets.

Those stark changes are meant to address the problem facing the original bill, namely that it would have run afoul of budget rules by adding to deficits beyond the 10th year. By conflicting with the rule, the bill could not proceed through the reconciliation process that would allow it to avoid a Democratic filibuster.

The updated bill appears to accord with the Senate rules. It is a $1.4 trillion tax cut over 10 years that turns into a tax hike over time, raising $30 billion in the 10th year, according to Congress' Joint Committee on Taxation.

The improved score is partly a reflection of the fact that many individual tax breaks expire. Also, Republicans had announced earlier Tuesday the the amended bill would repeal Obamacare's individual mandate penalties, a change that freed up $318 billion over the decade.

Happy Birthday Marines

Poor rich kids need a tax cut.

Brady’s bill would immediately deliver large tax cuts to the heirs of the nation’s wealthiest estates. Doubling the value of an estate that’s exempt from the tax — from the current $11 million per couple to $22 million — would give the largest estates each a tax cut of up to $4.4 million. Then, repealing the tax would give about 330 estates (which are each worth more than $50 million) each a tax cut averaging more than $20 million compared to current law.

With the current $11 million exemption for couples ($5.5 million per person), estates already must be extraordinarily large to face any estate tax. Due in part to the fact that policymakers drastically weakened the estate tax in recent decades, only 0.2 percent of all the estates in America are large enough to exceed the current exemption, leaving 99.8 percent of estates to face no estate tax at all.

Center on Budget and Policy Priorities
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