115th Congress on taxes, 2017-2018

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115th Congress, 2017-2018
Issues
Domestic policy
Key votes • Energy and the environment • Healthcare • Immigration
Economic policy and government regulations
Key votes • Budget • Financial policy • Taxes • Trade
Foreign policy and national security
Key votes • Iran nuclear deal
See also: Federal policy on taxes, 2017-2018

On December 22, 2017, President Donald Trump signed HR 1—the Tax Cuts and Jobs Act—into law. The law lowers tax rates for individuals and corporations, among other things. According to The Wall Street Journal, it is "the biggest transformation of the U.S. tax code in more than 30 years."[1]

While signing the bill, Trump said, “This is the bill right here, we’re very proud of it... I consider this very much a bill for the middle class, and for jobs. Corporations are literally going wild for [t]his.”[1]

On November 16, 2017, the House passed the Tax Cuts and Jobs Act by a vote of 227-205. On December 2, 2017, the Senate passed the tax bill by a vote of 51-49. All members of the Democratic Caucus and Republican Sen. Bob Corker (R-Tenn.) voted against the bill. Because there were differences between the House and Senate versions, a conference committee worked out a final, identical bill, which was released on December 15, 2017.[2][3][4]

On December 19, 2017, the House passed the conference committee version of the Tax Cuts and Jobs Act by a vote of 227-203. The Senate then passed the bill with minor changes made during debate early on December 20, 2017, by a vote of 51-48. The House voted on the bill once again following those changes since both chambers needed to pass identical bills in order for a bill to go to the president's desk. On December 20, 2017, the House passed the final version of the bill.[5][6] An outline of the full bill can be viewed here.

Process for passing HR 1—the Tax Cuts and Jobs Act
Step Status Date Vote
House Ways and Means Committee Approveda November 9, 2017 24-16
Senate Finance Committee Approveda November 16, 2017 14-12
Senate Budget Committee Approveda November 28, 2017 12-11
House vote Approveda November 16, 2017 227-205
Senate vote to begin debate Approveda November 29, 2017 52-48
Senate vote Approveda December 2, 2017 51-49
House vote on motion to go to conference Approveda December 4, 2017 222-192
Senate vote on motion to go to conference Approveda December 6, 2017 51-47
Conference report bill Approveda December 15, 2017 N/A
House vote on conference bill Approveda December 19, 2017 227-203
Senate vote on conference bill Approveda December 20, 2017 51-48
House vote on Senate changes Approveda December 20, 2017 224-201
Signed by president Approveda December 22, 2017 N/A

This page outlines major events and policy positions of the 115th Congress on taxes. Click on the timeline below to learn more about each headline.

What is tax policy? Tax policy refers to the ways in which the government decides to levy taxes. Policy decisions affect who is taxed, on what they are taxed, and how much they are taxed. The U.S. Constitution gives Congress the ability to tax and spend public money. Tax policies have impacts on revenue, which in turn affects how much the nation can spend and the nation's economy, but the exact nature and degree of the impacts are subject to debate.[7]

September 28, 2018: House passes tax package to extend individual tax cuts

On September 28, 2018, the House passed legislation that proposed making the individual and small business tax cuts in the Tax Cuts and Jobs Act permanent by a vote of 220-191. Under the law, the cuts were set to expire in 2025. The three-bill tax package, introduced by House GOP leadership as Tax Reform 2.0, also proposed making changes to taxes on retirement savings, education savings, and on start-up costs for new businesses. A breakdown of the bills appears below.[8][9]

HR 6760—the Protecting Family and Small Business Tax Cuts Act of 2018—proposed the following:[8][9][10]

  • Making permanent the lower individual tax rates of 10, 12, 22, 24, 32, 35, and 37 percent;
  • Making permanent the standard deduction of $12,000 per individual and $24,000 for a married couple;
  • Making permanent the child tax credit of $2,000 per child;
  • Making permanent the $10,000 cap on state and local tax (SALT) deductions; and
  • Making permanent the 20 percent rate deduction for pass-through businesses, among other things.

HR 6760 passed the House on September 28, 2018, by a vote of 220-191. Two hundred and seventeen Republicans and three Democrats—Reps. Conor Lamb (Pa.), Jacky Rosen (Nev.), and Kyrsten Sinema (Ariz.)—voted for the bill. One hundred and eighty-one Democrats and 10 Republicans, all from New York, New Jersey, and California, voted against the bill "because they did not want to cement the 2017 tax law’s $10,000 cap on the state and local tax deduction," according to The Hill.[11][12]

Speaking about HR 6760, House Ways and Means Committee Committee Chairman Kevin Brady (R-Texas) said in a statement, “We are providing certainty. The Protecting Family and Small Business Tax Cuts Act locks in the tax relief from the Tax Cuts and Jobs Act – which included a nearly doubled standard deduction, a doubled Child Tax Credit, lower rates across the board, and a historic 20-percent pass-through deduction for Main Street businesses. This will create over 1.5 million new jobs, continue to raise wages, and boost long-run GDP.”[9]

HR 6757—the Family Savings Act of 2018—proposed the following, according to The Wall Street Journal:[8][9][13]

  • Allowing “401(k) participants who have an annuity in a 401(k)-type plan to transfer the contract tax-free to an individual retirement account”;
  • Eliminating “the required minimum distributions individuals age 70½ or older must take from their IRAs and 401(k)-type accounts—although the provision would only apply to those with a cumulative balance of up to $50,000 in their retirement accounts”;
  • Allowing “parents to withdraw up to $7,500 from a retirement plan penalty-free within a year of the birth or adoption of a child”; and
  • Allowing “the use of money in a 529 college savings account to fund expenses, including for books and supplies, associated with an apprenticeship program or home schooling. Parents also would be permitted to use up to $10,000 from a 529 account to help a child with his or her student loan payments”, among other things.

The House passed the bill by a vote of 240-177 on September 27, 2018. Two hundred and thirty Republicans and 10 Democrats voted for the bill. One hundred and seventy-seven Democrats and no Republicans voted against the bill.[14]

HR 6756—the American Innovation Act of 2018—proposed the following:[8][9][15]

  • Allowing owners of new businesses to deduct up to $20,000 of their start-up costs, among other things.

The House passed HR 6756 by a vote of 229-31 on September 27, 2018. Two hundred and twenty-nine Republicans and 31 Democrats voted for the bill. One hundred and fifty-six Democrats and zero Republicans voted against the bill.[16]

Of HR 6756, Brady said, “We are helping entrepreneurs grow. The American Innovation Act will increase innovation by helping new entrepreneurs move from the kitchen table to Main Street and beyond. The country that wins the innovation race wins the future, and it’s time for our tax code to help us get there.”[9]

Rep. Richard Neal (D-Mass.), the top Democrat on the House Ways and Means Committee, criticized the tax package, saying, “With this second attempt at major tax legislation, congressional Republicans have doubled down on their initial tax scam and are yet again putting the wealthiest, most privileged Americans ahead of average, hardworking families.”[8]

September 12, 2018: Rettig confirmed by Senate as IRS commissioner

On September 12, 2018, the Senate voted 64-33 to approve the nomination of Charles Rettig as Internal Revenue Service (IRS) commissioner. All Republicans present voted with 15 Democrats to in favor of Rettig's nomination. "Democrats had few objections to Mr. Rettig himself. They used the debate over his nomination to highlight concerns with the 2017 tax law and with an IRS decision to let some nonprofit groups involved in politics submit less information about their donors," according to The Wall Street Journal.[17]

Conference version of tax bill

December 10, 2017: Collins undecided on tax bill

On December 10, 2017, Sen. Susan Collins (R-Maine) said that she had not decided if she would vote for the final version of the tax bill. She said, “I always wait until the final version of the bill is brought before us before I make a final decision on whether or not to support it. There are major differences between the House and Senate bills, and I don't know where the bill is going to come out. I also obviously care very much about amendments that I was successful in getting in the bill that particularly help middle-income families."[18]

Collins said that she wanted to make sure that “the 4 percent cut in Medicare that could go into effect will not go into effect. I would point out that that law has been waived 16 times. It has never been implemented. But I don't want seniors to have the anxiety of wondering whether the tax bill somehow is going to trigger a cut in Medicare.” She said that she had an agreement in writing on the Medicare deal from both Senate Majority Leader Mitch McConnell (R-Ky.) and Speaker of the House Paul Ryan (R-Wis.). Collins also said that she had an agreement with leadership on funding cost-sharing reduction payments.[18]

December 14, 2017: Rubio says he will not vote for latest version of tax bill

On December 14, 2017, Sen. Marco Rubio (R-Fla.) told reporters that he would not vote for the tax bill unless the child tax credit was increased. "Right now it's only $1,100. It needs to be higher than that," Rubio said. "I understand that this is a process of give and take, especially when there's only a couple of us fighting for it," he told reporters. "Given all the other changes they've made in the tax code leading into it, I can't in good conscience support it unless we are able to increase the refundable portion of it."[19]

December 15, 2017: GOP expands child tax credit; earns Rubio's support

On December 15, 2017, the GOP expanded the refundable part of the child tax credit from $1,100 to $1,400 of the $2,000-per-child credit to earn the support of Sen. Marco Rubio (R-Fla.), according to Rep. Kristi Noem (R-S.D.), a member of the House-Senate negotiating committee. Sen. Mike Lee also lobbied for the expanded child tax credit (R-Utah). According to The Wall Street Journal, "Lawmakers offset the change by reversing a decision to allow the child tax credit for 17-year-olds. The final bill, like current law, would make it available only for children under age 17."[20]

After the announcement, Rubio said that he would support the tax bill. He wrote on Twitter, "For far too long, Washington has ignored and left behind the American working class. Increasing the refundability of the Child Tax Credit from 55% to 70% is a solid step toward broader reforms which are both Pro-Growth and Pro-Worker. But there is still much more to do in the months and years to come. The progress made on the Child Tax Credit would not have been possible without the support of @SenMikeLee, @SenatorTimScott, and @IvankaTrump."[21]

December 15, 2017: Corker will vote for tax bill

On December 15, 2017, Sen. Bob Corker (R-Tenn.) said that he would support the conference version of the tax bill. Corker was the only GOP senator to vote against the Senate’s tax legislation on December 2, 2017.

Corker explained his decision, saying, “This bill is far from perfect, and left to my own accord, we would have reached bipartisan consensus on legislation that avoided any chance of adding to the deficit and far less would have been done on the individual side with items that do not generate economic growth. But after great thought and consideration, I believe that this once-in-a-generation opportunity to make U.S. businesses domestically more productive and internationally more competitive is one we should not miss.”[22]

December 15, 2017: Conference tax bill released

On December 15, 2017, the House-Senate conference committee released its version of HR 1—the Tax Cuts and Jobs Act. It included the following:[23][24]

  • Instituting seven individual tax brackets of 10, 12, 22, 24, 32, 35, and 37 percent;
  • Eliminating the personal exemption;
  • Increasing the standard deduction to $12,000 for an individual or $24,000 for a family;
  • Doubling the child tax credit doubles to $2,000 per child from $1,000;
  • Increasing the deduction for pass-through businesses to 20 percent;
  • Reducing the corporate tax rate to 21 percent;
  • Eliminating the individual mandate that required most Americans to buy health insurance or pay a penalty under the Affordable Care Act (ACA) beginning in 2019;
  • Eliminating the corporate alternative minimum tax, and increasing the exemption from the individual AMT;
  • Keeping the estate tax, but the exemption from it would be doubled;
  • Allowing the deduction of up to $10,000 in state and local sales, income, or property taxes;
  • Keeping tax breaks for charitable contributions and retirement savings plans;
  • Opening the Arctic Wildlife Refuge to oil drilling; and
  • Setting the corporate repatriation rate at 8 percent on illiquid assets and 15.5 percent on cash, among other things.

December 18, 2017: Collins supports tax bill

On December 18, Sen. Susan Collins (R-Maine) expressed support for the conference version of the tax bill on the Senate floor. "A couple with no children, earning $60,000, will see their taxes fall by more than $900,” she said. “And a couple with two children earning $60,000 will get a tax cut of about $1,700, a reduction of more than 100 percent. The bottom line is that most Maine households will see their taxes lowered. … This legislation will provide tax relief to working families, encourage the creation of jobs right here in America and spur economic growth that will benefit all Americans.”[25]

On December 10, Collins discussed her desire to avoid Medicare cuts and to fund cost-sharing reduction payments in connection with her pending decision on the conference tax bill.[18] On December 18, Senate Majority Leader Mitch McConnell (R-Ky.) said on the Senate floor that the chamber must "avoid unacceptable cuts in Medicare funding" and "pass bipartisan solutions that will help stabilize collapsing health insurance markets and lower premiums for individuals and families across the country.”[26]

December 19, 2017: House passes conference version of tax bill

Tax Cuts and Jobs Act (HR 1)

Yes check.svg Bill Passed (227-203) on December 19, 2017 Signed by President
Proposed providing for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.[27]

On December 19, 2017, the House passed the conference version of HR 1—the Tax Cuts and Jobs Act—by a vote of 227-203. Two hundred and twenty-seven Republicans and no Democrats voted in favor of the bill. One hundred and ninety-one Democrats and 12 Republicans voted against the bill. Two Democrats—Mark Pocan (Wis.) and Joseph Kennedy (Mass.)—did not vote.[5]

Following the vote, President Donald Trump tweeted, "Congratulations to Paul Ryan, Kevin McCarthy, Kevin Brady, Steve Scalise, Cathy McMorris Rodgers and all great House Republicans who voted in favor of cutting your taxes!"[28]

House Speaker Paul Ryan (R-Wis.) said to reporters, "This is one of the most important pieces of legislation that Congress has passed in decades to help the American worker, to help grow the American economy. This is profound change, and this is change that is going to put our country on the right path."[29]

House Minority Leader Nancy Pelosi (D-Calif.) tweeted, "There are few things more disturbing than hearing the swell of cheers from the @HouseGOP as they raise taxes on 86 million middle class families."[30]

Eleven of the 12 Republicans who voted against the conference version of the bill represented districts in California, New Jersey, or New York, states with relatively high state taxes, which were likely to be more affected by the reduction of state and local tax deductions than other states. Rep. Darrell Issa (R-Calif.), who voted against the bill, said, “Many in my area could face higher taxes under this plan. … I will not make the incredible tax burden they already endure even worse." Rep. Lee Zeldin (R-N.Y.), who also voted against the bill, said, “This bill remains a geographic redistribution of wealth, taking extra money from a place like New York to pay for deeper tax cuts elsewhere.”[31]

Rep. Tom McClintock (R-Calif.), who voted against the initial House version but for the conference version of the bill, said of his changed vote, “A lot of it is the overall rate reductions that they built in. … Even families losing tens of thousands of dollars in deductions still end up paying lower tax because of the rate reductions.”[32]

The following 12 Republicans voted against the bill.

Each of the Republican representatives who voted against the conference version of the tax bill also voted against the initial House version of the bill, which passed the chamber on November 16, 2017.[3]

December 20, 2017: Senate passes final version of tax bill

Tax Cuts and Jobs Act (HR 1)

Yes check.svg Motion Agreed to (51-48) on December 20, 2017 Signed by President
Proposed providing for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 and proposed changes to the tax code.[33]

On December 20, 2017, the U.S. Senate passed the final version of HR 1—the Tax Cuts and Jobs Act—by a vote of 51 to 48. Of the chamber's 52 Republicans, 51 voted for the bill. The chamber's 46 Democrats and both independents voted against the bill. One senator, John McCain (R), did not vote. McCain had returned to Arizona on December 17 to recover from chemotherapy.[34]

During debate before the Senate vote, the chamber struck provisions from the bill pertaining to the expansion of tax-exempt savings accounts for homeschooling and criteria that would determine whether universities had to pay an excise tax on investment income. The provisions were found by the Senate parliamentarian to violate the Senate's procedural rules for reconciliation legislation.[35][36]

December 20, 2017: House passes bill with Senate changes

On December 20, 2017, the House passed the final version of the tax bill by a 224-201 vote. No Democrats voted for the bill. One hundred and eighty-nine Democrats and 12 Republicans (the same 12 who voted against the conference version on December 19) voted against it. Three Republicans and four Democrats did not vote.[6]

December 22, 2017: Trump signs tax bill

On December 22, 2017, President Donald Trump signed HR 1—the Tax Cuts and Jobs Act—into law. The law lowers tax rates for individuals and corporations, among other things. According to The Wall Street Journal, it is "the biggest transformation of the U.S. tax code in more than 30 years."[1]

While signing the bill, Trump said, “This is the bill right here, we’re very proud of it... I consider this very much a bill for the middle class, and for jobs. Corporations are literally going wild for [t]his.”[1]

Senate version of tax bill

November 9, 2017: Senate GOP releases tax bill

On November 9, 2017, the Senate released its version of the tax bill, and it had some key differences from the House, including a delay in the corporate tax-rate cut, the number of individual tax brackets, and the tax rate for pass-through businesses, among other things. Lawmakers had to work out these differences before voting on a final bill. The bill proposed the following:[37][38]

  • Keeping the seven-bracket tax structure: 10, 12, 22.5, 32.5, 35, 38.5 percent. The top rate of 38.5 percent would start at $1 million for married couples and $500,000 for individuals;
  • Cutting the corporate tax rate from 35 percent to 20 percent. The cut would be delayed until 2019;
  • Increasing the standard deduction to $12,000 for individuals and $24,000 for married couples;
  • Expanding the child tax credit from $1,000 to $1,650 and phasing it out for married couples making $1 million;
  • Eliminating state and local tax deductions, including property taxes;
  • Keeping the 40 percent estate tax and doubling the estate tax exemption to a maximum of $11 million per person;
  • Creating a 17.4 percent deduction for pass-through business income;
  • Keeping the adoption tax credit;
  • Keeping the charitable contribution deduction;
  • Keeping the mortgage interest deduction for homes up to $1 million;
  • Keeping the medical expense deduction;
  • Repealing the alternative minimum tax; and
  • Doubling the exemption from the estate tax.

November 14, 2017: McConnell says tax bill will include repeal of ACA individual mandate

On November 14, 2017, Senate Majority Leader Mitch McConnell (R-Ky.) said that the Senate tax bill would include language to repeal the Affordable Care Act’s (ACA) individual mandate that requires every individual to obtain health insurance and carries fines for those who do not. McConnell said, “We’re optimistic that inserting the individual mandate repeal would be helpful and that’s obviously the view of the Senate Finance Committee Republicans as well.” The decision was made to earn the support of Sens. Tom Cotton (R-Ark.), Ted Cruz (R-Texas), and Rand Paul (R-Ky.).[39]

Cotton commented on the decision to include the repeal of the individual mandate in the tax bill, saying, “I’m pleased the Senate Finance Committee has accepted my proposal to repeal the Obamacare individual mandate in the tax legislation. Repealing the mandate pays for more tax cuts for working families and protects them from being fined by the IRS for not being able to afford insurance that Obamacare made unaffordable in the first place. I urge the House to include the mandate repeal in their tax legislation."

November 14, 2017: Senate GOP introduces changes to tax bill

On November 14, 2017, the Senate Finance Committee released changes to the tax bill. It proposed the following:[40][41]

  • Increasing the child tax credit to $2,000. The tax credit would phase out for married couples at $500,000;
  • Eliminating of the Affordable Care Act’s (ACA) individual mandate;
  • Ending individual tax cuts on December 31, 2025; and
  • Exempting taxpayers generating taxable income of up to $500,000 (married filing jointly) / $250,000 (all others) "from the W-2 wage limitation that otherwise might limit taxpayers from obtaining the full benefit of the 17.4 percent deduction on their qualifying pass-through income.”

Senate Finance Committee Chairman Orrin Hatch (R-Utah) commented on the changes, saying, “Remaking the tax code in a way that will lift hardworking, middle-class families has been among the chief goals of our effort. By scrapping this unpopular tax from an unworkable law, we not only ease the financial burdens already associated with the mandate, but also generate additional revenue to provide more tax relief to these individuals. In this revised mark, Americans families will see the child tax credit double and individual rates dip even further. Additionally, the modified mark creates more permanence in our tax system so that American job creators can invest in the long term, grow their business and create new jobs.”[40]

Senate Minority Leaders Chuck Schumer (D-N.Y.) criticized the provision that would repeal the ACA's individual mandate. He said, "The Republicans cannot expect to pass their own separate ideological health-care provision and then turn around and ask Democrats to vote to pass Alexander-Murray. ... It may help Republicans in the Senate give a larger tax break to the rich, but it hurts millions of Americans seeking affordable health insurance. Any Republican senator who thinks they can pass the individual mandate and then turn around and get Murray-Alexander passed is dead wrong." Schumer was referring to a bill introduced by Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) that would fund ACA payments to insurers for two years. The bill would need bipartisan support for passage.[42]

November 16, 2017: Senate Finance Committee approves tax bill with minor change

On November 16, 2017, by a vote of 14-12 along party lines, the Senate Finance Committee approved its version of the tax bill. According to The Wall Street Journal, "The changes included a minor alteration in the tax treatment of carried interest, which would require investment managers to hold assets for at least three years to get lower long-term capital gains rates."[43]

November 28, 2017: Senate Budget Committee approves tax bill

On November 28, 2017, the Senate Budget Committee approved the tax bill by a vote of 12-11 along party lines. Before the vote, Sens. Ron Johnson (R-Wis.) and Bob Corker (R-Tenn.) had considered voting against the bill, if their concerns with the bill were not addressed. Ultimately, both voted to approve the bill.[44]

November 29, 2017: Senate votes to begin debate on tax bill

On November 29, 2017, the Senate voted to begin debate on the Tax Cuts and Jobs Act by a vote of 52-48, along party lines. The vote allowed for 20 hours of additional debate on the tax bill followed by a vote-a-rama. During a vote-a-rama, any senator can force a vote on any amendment.[45]

Before the vote, Senate Majority Leader Mitch McConnell (R-Ky.) asked senators who were uncertain about some parts of the bill to vote to begin debate. He said, “I encourage any member who thinks that we need to fix the problems of our outdated tax code to vote to proceed to the legislation. I urge them to vote for the motion to proceed and offer their amendments. ...The bottom line is this: we must vote to begin debate.” All Republicans voted to begin debate.[45]

December 1, 2017: Daines and Johnson agree to vote for tax bill after leadership makes changes to how pass-through entities are treated

On December 1, 2017, Sens. Steve Daines (R-Mont.) and Ron Johnson (R-Wis.) said that they would vote for the tax bill after Senate leadership agreed to make changes to the bill to provide more tax relief for small businesses.[46]

Daines and Johnson were concerned about how pass-through entities were treated in the initial bill. According to The Wall Street Journal, pass-through entities include “sole proprietorships, partnerships, limited liability companies and S Corporations—whose owners pay taxes through individual returns and at individual income-tax rates, rather than corporate rates." Daines said the deduction for pass-through businesses would be increased to 23 percent, instead of 17.4 percent included in the initial bill.[47]

Daines said, "The win that we obtained last night ... really it's a $100 billion tax cut for these Main Street businesses." According to ‘’The Hill’’, Daines “said his change would allow the effective tax rate for pass-throughs to fall below 30 percent. Pass-through income can currently be taxed at rates as high as 39.6 percent.”[46]

December 1, 2017: Where did Republicans stand on the tax bill before the Dec. 2 vote?

On December 1, 2017, Senate leaders announced that 51 Republicans would vote for the tax bill to secure passage. Sen. Bob Corker (R-Tenn.) was the only Republican who said that he would vote against the bill.

Oppose

Circle thumbs down.png Sen. Bob Corker (R-Tenn.)

On December 1, 2017, Sen. Bob Corker (R-Tenn.) said in a statement, "This is yet another tough vote. I am disappointed. I wanted to get to yes. But at the end of the day, I am not able to cast aside my fiscal concerns and vote for legislation that I believe, based on the information I currently have, could deepen the debt burden on future generations."[48]

On October 4, 2017, Sen. Bob Corker (R-Tenn.) said that he would not vote for a final bill unless it ”reduces deficits and does not add to deficits with reasonable and responsible growth models. And unless we can make it permanent, I don’t have any interest in it.”[49]

On November 28, 2017, Corker voted for the tax bill as a member of the Senate Budget Committee.[50]

Switched to yes

After being undecided or opposed to the tax bill, the following senators said that they would vote for the bill:

Circle thum up.png Sen. Susan Collins (R-Maine)

On December 1, 2017, Sen. Susan Collins (R-Maine) wrote in a tweet, "After securing significant changes, as well as commitments to pass legislation to help lower health insurance premiums, I will cast my vote in support of the Senate tax reform bill."[51]

On November 19, 2017, Collins said that she wanted to see changes to the Senate tax bill before she could support it. Collins said, [52]

“ I want to see changes in that bill. And I think there will be changes. There are some provisions of the House bill that I like better. For example, the House retains the top rate of 39.6 percent for people who make $1 million or more a year. That's a change that I would like to see be made in the Senate bill so that we can skew more of the relief to middle income taxpayers. So some very good provisions in the Senate bill such as the doubling of the child tax credit and making it refundable for people of low income. So also a doubling of the standard deduction, which means that a family making $24,000 would not pay any income tax. So, there are provisions of both bills that I like. But I think the bill needs work. … But the biggest mistake was putting in a provision from the Affordable Care Act into the Senate bill that is not in the House bill. And I hope that will be dropped or, that bills have been introduced by senators Alexander and Murray and Bill Nelson and myself will be adopted to mitigate the impact of those provisions.[53] ”

Collins also said that the individual tax cuts should be made permanent, the corporate tax rate should be reduced to 22 percent instead of 20 percent, and the tax deduction for state and local property taxes should be restored.[52]

Circle thum up.png Sen. Jeff Flake (R-Ariz.)

On December 1, 2017, Sen. Jeff Flake (R-Ariz.) said, "I am pleased to announce I will vote in support the tax reform bill." Flake wanted leadership to rid of "an $85 billion 'budget gimmick'" in the bill and agree to work on a legislative fix for the Deferred Action for Childhood Arrivals (DACA) program in exchange for his support.[54]

On November 9, 2017, Flake expressed concern over the tax bill but did not say if he would support or oppose the bill. Flake said,[55]

“ I remain concerned over how the current tax reform proposals will grow the already staggering national debt by opting for short-term fixes while ignoring long-term problems for taxpayers and the economy. We must achieve real tax reform crafted in a fiscally responsible manner. I look forward to working with my colleagues during a full and robust debate on the Senate floor to deliver on that goal.[53] ”
Circle thum up.png Sen. Steve Daines (R-Mont.)

On December 1, 2017, Sen. Steve Daines (R-Mont.) said he would vote for the tax bill. He said in a statement, "After weeks of fighting for Main Street businesses including Montana’s farmers and ranchers, I’ve decided to support the Senate tax cut bill which provides significant tax relief for Main Street businesses. With 68% of Montana’s jobs created by Main Street businesses, this is much needed relief that will help spur economic growth and provide higher paying jobs.”[46]

On November 27, 2017, an aide to Daines said that the senator would not vote for the tax bill in its current form. The aide said, "Senator Daines has concerns with how the tax bill looks at main street versus large corporations. The Senator wants changes to the tax cut bill that ensure main street businesses are not put at a competitive disadvantage against large corporations." The aide added that Daines "remains optimistic and is continuing to work with colleagues."[56]

Circle thum up.png Sen. Ron Johnson (R-Wis.)

On December 1, 2017, spokesperson for Sen. Ron Johnson (R-Wis.) said that he would vote for the tax bill, according to The Hill.[46]

On November 15, 2017, Johnson said that he would not vote for the tax bill. He said, “If they can pass it without me, let them. I’m not going to vote for this tax package.”[47]

Johnson criticized the bill because he said it favored corporations over pass-through entities. According to The Wall Street Journal, pass-through entities include “sole proprietorships, partnerships, limited liability companies and S Corporations—whose owners pay taxes through individual returns and at individual income-tax rates, rather than corporate rates. The Senate plan, like the House plan, proposes to cut the corporate rate from 35% to 20%. Top rates for pass-through filers would remain over 30% in the Senate version of the bill and the House bill substantially constrains how much pass-through income could be taxed at a new 25% rate.”[47]

Johnson added, “I have no problems in making all American businesses competitive globally. This isn’t anti-big corporation at all. When you’re going to do a tax reform, you have to treat them equitably so they can maintain their competitive position here at home as we’re making them competitive globally.”[47]

On November 28, 2017, Johnson voted for the tax bill as a member of the Senate Budget Committee.[50]

Circle thum up.png Sen. John McCain (R-Ariz.)

On November 30, 2017, Sen. John McCain (R-Ariz.) said that he would vote for tax bill. He said, “I believe this legislation, though far from perfect, would enhance American competitiveness, boost the economy, and provide long overdue tax relief for middle class families. This is not a perfect bill, but it is one that would deliver much-needed reform to our tax code, grow the economy, and help Americans keep more of their hard-earned money.”[57]

On November 27, 2017, McCain said that he was undecided on the tax bill. He said he had concerns about "a lot of things" in the bill.[58]

Circle thum up.png Sen. James Lankford (R-Okla.)

On November 29, 2017, Sen. James Lankford (R-Okla.) said that he would likely vote for the tax bill. He said, “What I have done is ask for a backstop to be in place to say, in case the economic numbers aren’t reached, there will be a way to be able to recover some of those revenues. So yes, I am on board with this bill because I want to see the good economic growth that’s coming with it, but I also want to make sure we’re protecting future taxpayers as well in debt and deficit."[59]

On November 15, 2017, Lankford said that he was undecided on the tax bill. He said that he was concerned about budget deficits.[60]

Circle thum up.png Sen. Lisa Murkowski (R-Alaska)

On November 29, 2017, a representative from Sen. Lisa Murkowski's (R-Alaska) office told a reporter with MSNBC that she would vote for the tax bill after initially expressing concern about the bill.[61]

In an op-ed on November 21, 2017, Sen. Lisa Murkowski (R-Alaska) said that she supported repealing the individual mandate tax penalty under the Affordable Care Act (ACA) as part of the tax bill. She did not, however, say if she would support or oppose the final bill.[62][63] Murkowski wrote,

“ Repealing the individual mandate simply restores to people the freedom to choose. Nothing else about the structure of the ACA would be changed. If you currently get tax credits to help pay for your insurance, you could still receive those credits if you choose to buy an exchange plan. If you are enrolled on Medicaid or received coverage under Medicaid expansion, you could still be enrolled if you choose to be. The only difference would be is if you choose to not buy health insurance, the government would not levy a tax on you.[53] ”
Circle thum up.png Sen. Jerry Moran (R-Kan.)

On November 28, 2017, Sen. Jerry Moran (R-Kan.) told Fox News that he “expects to vote yes” on the tax bill.[64]

During a town hall meeting on November 24, 2017, Moran did not say if he would vote for or against the tax bill. Moran said that he was concerned about the tax bill increasing the budget deficit. He also said that he opposed using the tax bill to repeal the requirement that individuals purchase health insurance under the Affordable Care Act (ACA). He said, “I hope that we can get health care separated from taxes to start with.” Additionally, Moran said that he opposed a provision in the bill that “would tax as income the tuition waivers given in lieu of salaries to graduate teaching assistants at universities.” Moran said, “I will do everything I can to make sure that provision is not in there. Then I’ll make a decision about the overall tax bill, whether it’s a good thing or a bad thing.”[65]

What were the key differences between the House and Senate versions of the tax bill?

There were many differences between the House and Senate versions of the tax bill. Both chambers had to agree on a final, identical bill before holding a final vote. The House and Senate versions differed in the following ways:

December 2, 2017: Senate passes tax bill

Tax Cuts and Jobs Act (HR 1)

Yes check.svg Bill Passed (51-49) on December 2, 2017
Proposed amending the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.[66]

On December 2, 2017, the Senate passed the tax bill by a vote of 51-49. All members of the Democratic Caucus and Republican Sen. Bob Corker (R-Tenn.) voted against the bill.[4]

After the vote, Senate Majority Leader Mitch McConnell (R-Ky.) said, "This is a great day for the country. We have an opportunity now to make America more competitive, to keep jobs from being shipped offshore and to provide substantial relief for the middle class."[67]

December 6, 2017: Senate passes motion to go to conference with House on tax bill

On December 6, 2017, the Senate approved a motion to go to conference with the House on the tax bill by a vote of 51-47. Sens. Lamar Alexander (R-Tenn.) and Al Franken (D-Minn.) did not vote. The Senate and House bill had some key differences, including the number of tax brackets, a delay in the corporate tax rate cut, the child tax credit, the tax rate for pass-through businesses, and repealing the Affordable Care Act's (ACA) individual mandate, among other things. Lawmakers had to work out these differences before voting on a final bill.[68]

December 6, 2017: McConnell names eight to conference committee

On December 6, 2017, Senate Majority Leader Mitch McConnell (R-Ky.) announced that the following senators would serve on a conference committee to reconcile the House and Senate tax bills: Sens. John Cornyn (R-Texas), Mike Enzi (R-Wyo.), Orrin Hatch (R-Utah), Lisa Murkowski (R-Alaska), Rob Portman (R-Ohio), Tim Scott (R-S.C.), John Thune (R-S.D.), and Pat Toomey (R-Pa.).[69]

House version of tax bill

November 2, 2017: House GOP releases tax bill

On November 2, 2017, the House GOP released its tax bill, which proposed “the biggest transformation of the U.S. tax code in more than 30 years,” according to The Wall Street Journal. The bill proposed the following:[70][71][72][73]

  • Cutting the corporate tax rate from 35 percent to 20 percent;
  • Repealing the Alternative Minimum Tax;
  • Repealing the deduction for student-loan interest;
  • Reducing tax brackets from seven to three: 12, 25, and 35 percent. Individuals earning less than $24,000, and married couples earning less than $48,000, would pay no income tax. In addition, those earning more than $1 million would pay 39.6 percent;
  • Imposing a 10 percent global minimum tax on foreign subsidiaries;
  • Expanding the standard deduction from $12,700 to $24,000 for married couples and from $6,530 to $12,000 for individuals;
  • Doubling estate tax exemptions until 2024, at which point it would be repealed.
  • Increasing the child tax credit to $1,600, and $300 per person credit for filers and non-child dependents;
  • Limiting home interest deduction to loans up to $500,000;
  • Eliminating the medical expense deduction; and
  • Limiting state and local tax (SALT) deductions to property tax deductions capped at $10,000.

Some elements of the tax bill, including the proposed cap on the mortgage-interest deduction on new home sales, the repeal of state and local tax deductions, and the tax rate on multinational companies’ accumulated offshore earnings, were met with opposition. In response to the opposition, Brady said, “Are there some areas where we’ve asked people to bring solutions? Yeah.”[74]

November 6, 2017: House passes amendment making changes to tax bill

On November 6, 2017, the House Ways and Means Committee voted 24-16, along party lines, to approve an amendment offered by Rep. Kevin Brady (R-Texas), chairman of the House Ways and Means Committee.

The amendment included the following, according to Brady and The Wall Street Journal:[75][76]

  • Delaying “the repeal of tax-free savings accounts for dependent care” through December 31, 2022;
  • Denying “lower long-term capital gains rates on carried interest to assets held for fewer than three years, instead of one year”;
  • Implementing “a 20% excise tax on payments from companies in the U.S. to related foreign companies”; and
  • Altering “a tax on private university endowments to affect schools with endowments of more than $250,000 per student, instead of $100,000 per student.”

November 9, 2017: House passes amendment making changes to tax bill

On November 9, 2017, the House Ways and Means Committee voted 24-16, along party lines, to approve an amendment offered by Rep. Kevin Brady (R-Texas), chairman of the House Ways and Means Committee.

The amendment proposed the following, according to Brady and The Wall Street Journal:[77]

  • Creating “a new 9% tax rate for certain income received by small businesses”;
  • Requiring “companies to spread their deductions for research expenses over five years in many cases and 15 years in other instances”;
  • Altering “a 20% excise tax on payments from U.S. companies to related foreign firms;
  • Altering “the rules for when charities can engage in political speech. Currently, they are prohibited from doing so or risk losing their tax exemptions. Under the proposal, they could engage in such speech in the course of their ordinary activities and as long as their expenses are minimal. That's broader than the previous version, which had applied only to religious organizations. The expanded version would expire after 2023”; and
  • Preserving the adoption tax credit.[78]

November 9, 2017: House committee approves tax bill

On November 9, 2017, the House Ways and Means Committee approved the tax bill by a vote of 24-16 along party lines.[79]

November 16, 2017: House passes tax bill

Tax Cuts and Jobs Act (HR 1)

Yes check.svg Bill Passed (227-205) on November 16, 2017
Proposed amending the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.[80]

By a vote of 227-205, the House passed HR 1—the Tax Cuts and Jobs Act. Two hundred and twenty-seven Republicans and no Democrats voted in favor of the bill. One hundred and ninety-two Democrats and 13 Republicans voted against the bill.[3]

After the bill passed, Trump congratulated House Republicans, writing in a tweet, "Congratulations to the House of Representatives for passing the #TaxCutsandJobsAct — a big step toward fulfilling our promise to deliver historic TAX CUTS for the American people by the end of the year!"[81]

All of the Republicans who voted against the bill, with the exception of Rep. Walter Jones (R-N.C.), represented states with high taxes. They opposed the bill because it "would eliminate the deduction for state and local income and sales taxes and cap the property-tax deduction at $10,000," according to The Hill. Rep. Lee Zeldin (R-N.Y.) said, “I just have too many constituents who are going to see their taxes go up or not see the benefit of the tax relief."[82]

The following Republicans voted against the bill:

December 4, 2017: House passes motion to go to conference with Senate on tax bill

On December 4, 2017, the House approved a motion to go to conference with the Senate on the tax bill by a vote of 222-192. The Senate and House bill had some key differences, including the number of tax brackets, a delay in the corporate tax rate cut, the child tax credit, and the tax rate for pass-through businesses, among other things. Lawmakers had to work out these differences before voting on a final bill.[83]

December 4, 2017: Ryan names nine to conference committee

On December 4, 2017, Speaker of the House Paul Ryan (R-Wis.) named nine Republicans to serve on the conference committee that negotiated a final tax bill. The conference was led by GOP Reps. Kevin Brady (R-Texas), Devin Nunes (R-Calif.), Peter Roskam (R-Ill.), Diane Black (R-Tenn.), Kristi Noem (R-S.D.), Rob Bishop (R-Utah), Don Young (R-Alaska), Greg Walden (R-Ore.), and John Shimkus (R-Ill.).[84]

October 26, 2017: House adopts Senate’s budget resolution, paving the way for the GOP’s tax reform plan

A concurrent resolution establishing the congressional budget for the United States Government for fiscal year 2018 and setting forth the appropriate budgetary levels for fiscal years 2019 through 2027. (H Con Res 71)

Yes check.svg Concurrent Resolution Agreed to (51-49) on October 19, 2017
Proposed establishing the congressional budget for the United States Government for fiscal year 2018 and setting forth the appropriate budgetary levels for fiscal years 2019 through 2027.[85]

On October 26, 2017, by a vote of 216-212, the House passed the Senate’s version of the budget, which is the first step towards tax reform. Two hundred and sixteen Republicans and no Democrats voted for the resolution. One hundred and ninety-two Democrats and 20 Republicans voted against the resolution. The House voted to pass the Senate's version of the budget instead of going to conference to reconcile differences between the House and Senate resolutions. Passing the budget resolution is the first step for Republicans to initiate the reconciliation process, which is what they will use to pass their tax reform package. Reconciliation prevents Democrats from filibustering the tax proposal and allows Republicans to pass it with a simple majority of 51 votes in the Senate, instead of the usual 60-vote requirement.

The budget resolution proposed maintaining spending at 2017 levels for the year. It proposed cutting nondefense spending in subsequent years, with a $106 billion cut in 2027. It proposed allowing defense spending levels to continue rising at their current rates, reaching $684 billion in 2027. It also proposed cutting $473 billion from Medicare’s baseline spending and about $1 trillion from Medicaid over 10 years. It also allows for tax cuts that reduce revenues and increase deficits by $1.5 trillion over a decade.

Budget resolutions are nonbinding, and they do not require the president’s signature.

The following Republicans voted against the resolution: Reps. Justin Amash (Mich.), Ken Buck (Colo.), Dan Donovan (N.Y.), John Duncan (Tenn.), John Faso (N.Y.), Brian Fitzpatrick (Pa.), Matt Gaetz (Fla.), Lynn Jenkins (Kan.), Walter Jones (N.C.), John Katko (N.Y.), Pete King (N.Y.), Leonard Lance (N.J.), Frank LoBiondo (N.J.), Tom MacArthur (N.J.), Thomas Massie (Ky.), Mark Sanford (S.C.), Chris Smith (N.J.), Elise Stefanik (N.Y.), Claudia Tenney (N.Y.), and Lee Zeldin (N.Y.).

October 19, 2017: Senate passes budget resolution

A concurrent resolution establishing the congressional budget for the United States Government for fiscal year 2018 and setting forth the appropriate budgetary levels for fiscal years 2019 through 2027. (H Con Res 71)

Yes check.svg Concurrent Resolution Agreed to (51-49) on October 19, 2017
Proposed establishing the congressional budget for the United States Government for fiscal year 2018 and setting forth the appropriate budgetary levels for fiscal years 2019 through 2027.[86]

On October 18, 2017, by a vote of 51-49, the Senate passed a budget resolution, a key step in moving towards tax reform. A budget resolution had to be passed before moving on to tax reform. One major difference between the House and Senate budget resolutions was that the Senate version allowed for tax cuts that reduced revenues and increased deficits by $1.5 trillion over a decade, while the House version called for revenue-neutral tax legislation that would not increase deficits.[87]

Budget resolutions are nonbinding, and they do not require the president’s signature.

The Trump administration released the following statement on the passage of the budget resolution:

“ President Donald J. Trump applauds the Senate for passing its FY 2018 Budget Resolution today and taking an important step in advancing the Administration’s pro-growth and pro-jobs legislative agenda. This resolution creates a pathway to unleash the potential of the American economy through tax reform and tax cuts, simplifying the overcomplicated tax code, providing financial relief for families across the country, and making American businesses globally competitive. President Trump looks forward to final enactment of the Fiscal Year 2018 budget resolution so we can bring jobs back to our country.[53] ”

October 5, 2017: House passes budget resolution

Establishing the congressional budget for the United States Government for fiscal year 2018 and setting forth the appropriate budgetary levels for fiscal years 2019 through 2027. (H Con Res 71)

Yes check.svg Bill Passed (219-206) on October 5, 2017
Proposed establishing the congressional budget for the federal government for FY2018 and setting forth budgetary levels for FY2019-FY2027.[89]

On October 5, 2017, by a vote of 219-206, the House passed a budget resolution, a key step in moving towards tax reform. A budget resolution had to be passed before moving on to tax reform. The resolution proposed $6.5 trillion in deficit reduction over 10 years. It proposed setting overall discretionary spending for fiscal year 2018 at $1.132 trillion. It proposed tax reform and increased defense and national security spending. It assumed that the American Health Care Act of 2017 would pass. It also proposed cuts to Medicare and nondefense programs.[90]

The Senate approved its budget resolution on October 19, 2017. A final budget resolution was passed on October 26, 2017.

Budget resolutions are nonbinding, and they do not require the president’s signature.

September 27, 2017: GOP's tax framework released

On September 27, 2017, President Donald Trump and congressional Republicans released their tax plan—the "Unified Framework For Fixing Our Broken Tax Code." The proposal called for a reduction of income tax brackets from seven to three, with rates of 12 percent, 25 percent, and 35 percent. It called for a doubling of the standard deduction from $6,000 to $12,000 for single filers and $12,000 to $24,000 for married couples. It called for a reduction of the corporate tax rate from 35 percent to 20 percent and a reduction of the small business tax from 39.6 percent to 25 percent. The framework also proposed increasing the child tax credit, eliminating state and local tax deductions, and repealing the Alternative Minimum Tax, among other things.The plan was not a complete tax bill and left several figures and details for the tax-writing committees to work out.[91][92][93][94]

In a speech announcing the tax proposal, Trump said, "This is a once-in-a-generation opportunity, and I guess it's probably something I can say that I'm very good at. I've been waiting for this for a long time. We're going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans, and we are going to bring back the jobs and wealth that have left our country -- and most people thought left our country for good."[95]

The plan called for the following changes in the tax code:

  • Reduction of income tax brackets from seven to three, with proposed rates of 12 percent, 25 percent, and 35 percent. The plan proposed allowing for the possibility of a fourth bracket above 35 percent.
  • Doubling of standard deduction from $6,000 to $12,000 for single filers ($12,000 to $24,000 for married couples).
  • Increase in child tax credit. A specific figure was not provided.
  • Elimination of state and local tax deductions, among other itemized deductions.
  • Elimination of $4,050 personal exemption.
  • Repeal of the Alternative Minimum Tax, a tax that typically affects those making between $200,000 and $1,000,000.
  • Repeal of the estate tax.
  • Reduction of the corporate tax rate from 35 percent to 20 percent.
  • Reduction of small business tax from 39.6 percent to 25 percent.
  • Changes to taxation of multinational firms. Currently, these firms pay 35 percent on overseas profits brought back to the United States. The framework called for no longer taxing the overseas profits in favor of a tax of the government where the profit was made.
  • Addition of a minimum foreign tax on multinational firms.
  • Addition of a one-time tax rate for corporate repatriation.

July 27, 2017: Republicans release statement on tax policy

On July 27, 2017, House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-Utah), and House Ways and Means Committee Chairman Kevin Brady (R-Texas) issued the following joint statement on tax reform:

“ For the first time in many years, the American people have elected a President and Congress that are fully committed to ensuring that ordinary Americans keep more of their hard-earned money and that our tax policies encourage employers to invest, hire, and grow. And under the leadership of President Trump, the White House and Treasury have met with over 200 members of the House and Senate and hundreds of grassroots and business groups to talk and listen to ideas about tax reform.

We are all united in the belief that the single most important action we can take to grow our economy and help the middle class get ahead is to fix our broken tax code for families, small business, and American job creators competing at home and around the globe. Our shared commitment to fixing America’s broken tax code represents a once-in-a-generation opportunity, and so for three months we have been meeting regularly to develop a shared template for tax reform.

Over many years, the members of the House Ways and Means Committee and the Senate Finance Committee have examined various options for tax reform. During our meetings, the Chairmen of those committees have brought to the table the views and priorities of their committee members. Building on this work, as well as on the efforts of the Administration and input from other stakeholders, we are confident that a shared vision for tax reform exists, and are prepared for the two committees to take the lead and begin producing legislation for the President to sign.

Above all, the mission of the committees is to protect American jobs and make taxes simpler, fairer, and lower for hard-working American families. We have always been in agreement that tax relief for American families should be at the heart of our plan. We also believe there should be a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones. The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas. And we are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies and workers, while protecting American jobs and the U.S. tax base. While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.

Given our shared sense of purpose, the time has arrived for the two tax-writing committees to develop and draft legislation that will result in the first comprehensive tax reform in a generation. It will be the responsibility of the members of those committees to produce legislation that achieves the goals shared broadly within Congress, the Administration, and by citizens who have been burdened for too long by an outdated tax system. Our expectation is for this legislation to move through the committees this fall, under regular order, followed by consideration on the House and Senate floors. As the committees work toward this end, our hope is that our friends on the other side of the aisle will participate in this effort. The President fully supports these principles and is committed to this approach. American families are counting on us to deliver historic tax reform. And we will.[53]

”

Members of Congress on tax policy

Republican Party Republicans

  • October 1, 2017, House Speaker Paul Ryan (R-Wis.): During an interview, CBS News' John Dickerson asked Ryan how the GOP's tax proposal would help blue-collar workers. Ryan said, "Well first of all, the whole purpose of this is to get a middle class tax cut, to help the people who are working paycheck to paycheck and keep more of their own hard-earned dollars. They haven't had a break in a long time. Our economy's been growing between one and two percent for a long time. We haven't had three percent growth in about a decade, and that means workers are struggling. So number one, a middle class tax cut to help those families keep more where they earn. But number two, this business is a perfect example of how we need to help get tax reform to get the tax rates down on these businesses so they can stay competitive and keep hiring people."[97]
  • Dickerson then asked, "You promising anything? Can I-- do I know some money's coming to me?" Ryan said, "You know some money's coming to you. We're going to double that standard deduction. We're going to make it so he can fill out his taxes on a postcard. We're going to lower his taxes. That's really important. So he has more tax-home pay. But there's another component to this is, look at this machine shop, this business pays about a 40 percent tax rate but it competes with companies all around the world who pay an average 22 and a half percent on their taxes. So we're going to lower the taxes on this business so it's globally competitive, so it can compete with its foreign competition. And then we're going to give this business an ability to write off the investments that they make in this business to buy more machines, to hire more workers, to raise wages. That, to us, is really important."[97]
  • When asked if he could "guarantee that every middle class person will get a tax cut," Ryan said, "The entire purpose of this is to lower middle class taxes, so yes, people are going to get tax cuts. How big are those tax cuts? That depends on the individual. Do you have kids? Because there's going to be a bigger child tax credit. Are you married? You're going to have zero marriage penalty. ...Those are the kinds of things that will determine, based on how low people's taxes go, because we want pro-family tax code to make it easy for people to get married, to raise kids, to work."[97]
  • May 16, 2017, Senate Majority Leader Mitch McConnell (R-Ky.): McConnell said that tax reforms would have to be revenue neutral to pass the Senate and that an import tax outlined by the House was unlikely to pass. McConnell said that he wanted to complete a tax plan during the 115th session of Congress.[98]
  • April 26, 2017, House Speaker Paul Ryan (R-Wis.): Ryan commented on the Trump administration's tax plan, saying, "Pro-growth tax reform means that we will have lower rates, we will have a simpler tax code with fewer brackets, and we will have an IRS that exists only to serve the taxpayer."[99]
  • April 25, 2017, Rep. Kevin Brady (R-Texas): Brady said, "I think the bolder the better in tax reform. I'm excited that the president is going for a very ambitious tax plan."[100]
  • December 19, 2016, Sen. Rand Paul (R-Ky.): Paul wrote in an op-ed, "I like to tell people, no one has ever knocked a door or made a phone call because they were excited about ‘revenue neutral’ tax reform. By its very nature it means that some people will pay less, but some people will pay more and government will still be the same enormous beast it was before we started the process. That’s not good enough! One of the things I liked about Donald Trump’s campaign was that he ran on a big, bold tax plan, that cut taxes for every American, and it was NOT revenue neutral. The government would get less money and every American would keep more. That’s the kind of plan I ran on too, and it’s the kind of plan we in Congress should quickly rally behind as we start our new session and the new Administration."[101]

Democratic Party Democrats

  • December 4, 2017, House Minority Leader Nancy Pelosi (D-Calif.): Pelosi said, “I have said that this was stiff competition by some of the other things they have put forth, is the worst bill in the history of the United States Congress. Now, how can I make that claim? Well, because it involves more money, hurts more people, increases the deficit by so much more, and just because everything is bigger in our country, the consequences of this bill, a multitrillion dollar economy being addressed by a bill that had no hearings, no expert testimony, just the speed of light, as [Rep.] Jamie Raskin says, the speed of light in the dark of night, here we are." During a press conference, Pelosi also said, “No, it is the end of the world. The debate over health care is life and death. This is Armageddon. This is a very big deal because you know why? It is very hard to come back from this. They take us further, more deeply into debt — what can you do? It is a gift to corporate American. Up to a trillion and a half dollars will be paid for by the growth it creates and even their own people say ‘Nonsense. Not true.’”[102]
  • October 23, 2017, Rep. Richard Neal (D-Mass.): Neal, the top Democrat on the House Ways and Means Committee, said, “I plan to hold President Trump to his word that he and congressional Republicans will not put forward any plan that taxes the retirement savings of American families. We should be using tax reform as an opportunity to ensure that every American worker has the chance at a secure retirement, rather than using the retirement savings of middle-class families to pay for tax cuts for the wealthy.”[103]
  • August 1, 2017, Senate Democrats: All but three Senate Democrats sent a letter to Senate Majority Leader Mitch McConnell (R-Ky.) asking that Senate Republicans drop plans to pass tax legislation via the reconciliation process. Democrats also asked McConnell to not cut taxes on the top one percent of wages and to not raise the federal debt. Senate Minority Leader Chuck Schumer (D-N.Y.) said, "Ramming tax cuts through under reconciliation — the very same partisan process that failed for health care — is the wrong way to do the business of the country." Sens. Joe Manchin (D-W.Va.), Joe Donnelly (D-Ind.), and Heidi Heitkamp (D-N.D.) did not sign the letter.[104]
  • McConnell responded to the letter, saying, "We will need to use reconciliation because we have been informed by the majority of Democrats, in the letter I just received today, that most of the principles that would get the country growing again, they’re not interested in addressing."[104]
  • April 26, 2017, Senate Minority Leader Chuck Schumer (D-N.Y.): Schumer said that the Trump administration's tax plan "will be roundly rejected by taxpayers of all political stripes. The American people, once again, are learning that what President Trump promised in his campaign and what he’s doing are totally at odds."[105]
  • April 26, 2017, Sen. Ron Wyden (D-Ore.): Wyden said the Trump administration's tax plan was "light on details for people who work for a living, yet very detailed for the elite," and he called the plan, "self-serving and elitist."[105]
  • April 26, 2017, Rep. Ted Lieu (D-Calif.): Lieu said, "I can explain in one word why the Trump tax plan and Trumpcare are both disasters: math. No matter how hard the President and Republicans spin it, 2 + 2 will never equal 5. Despite this mathematically impossible spin, a cold, hard fact remains: the Trump tax plan does not pay for itself. It doesn’t even come close. America is a great nation, but we haven’t yet discovered magic. In the real world, the rules of math always apply. Instead of paying for itself, the Trump tax plan - particularly it’s slashing of the business tax rate to 15% without offsetting revenue increases - will blow a ‘bigly’ hole in our nation’s budget, federal deficit and federal debt."[106]
  • April 26, 2017, Sen. Bob Casey (D-Pa.): Casey called the Trump administration's tax plan "a massive tax giveaway to millionaires, billionaires and big corporations at the expense of middle class families in Pennsylvania."[99]

Grey.png Independents

  • April 26, 2017, Sen. Bernie Sanders (I-Vt.): Sanders tweeted, "We have a rigged economy designed to benefit the wealthiest Americans and large corporations. Trump’s tax plan would make that system worse."[105]

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See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 1.3 The Wall Street Journal, "Trump Signs Sweeping Tax Overhaul Into Law," December 22, 2017
  2. ↑ WaysandMeans.House.gov, "HR 1," accessed November 2, 2017
  3. ↑ 3.0 3.1 3.2 Clerk.House.gov, "Final Vote Results For Roll Call 637," November 16, 2017
  4. ↑ 4.0 4.1 Senate.gov, "On Passage of the Bill (H.R. 1 As Amended )," December 2, 2017
  5. ↑ 5.0 5.1 Clerk.House.gov, "Final Vote Results For Roll Call 692," December 19, 2017
  6. ↑ 6.0 6.1 United States House of Representatives, "Roll Call 669, H.R. 1," December 20, 2017
  7. ↑ History.House.gov, "Power of the Purse," accessed June 5, 2017
  8. ↑ 8.0 8.1 8.2 8.3 8.4 The Wall Street Journal, "House Republicans Unveil Plan to Make Individuals’ Tax Cuts Permanent," September 10, 2018
  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 WaysandMeans.House.gov, "Brady Hails Introduction of Tax Reform 2.0: Permanent Tax Relief for Families and Small Business, Helping Families Save More, and Spurring Innovation Here In U.S." September 10, 2018
  10. ↑ Congress.gov, "H.R.6760 - Protecting Family and Small Business Tax Cuts Act of 2018," accessed October 16, 2018
  11. ↑ Clerk.House.gov, "Final Vote Results for Roll Call 414," September 28, 2018
  12. ↑ The Hill, "House votes to extend individual tax cuts," September 28, 2018
  13. ↑ Congress.gov, "H.R.6757 - Family Savings Act of 2018," accessed October 16, 2018
  14. ↑ Clerk.House.gov, "Final Vote Results for Roll Call 411," September 27, 2018
  15. ↑ Congress.gov, "H.R.6756 - American Innovation Act of 2018," accessed October 16, 2018
  16. ↑ Clerk.House.gov, "Final Vote Results for Roll Call 412," September 27, 2018
  17. ↑ The Wall Street Journal, "Senate Confirms Charles Rettig as IRS Commissioner," September 12, 2018
  18. ↑ 18.0 18.1 18.2 CBS News, "Face the Nation December 10, 2017 Transcript," December 10, 2017
  19. ↑ The Hill, "Rubio to vote 'no' on tax bill unless child tax credit is expanded," December 14, 2017
  20. ↑ The Wall Street Journal, "GOP Increases Child Tax Credit in Bid to Satisfy Rubio, Lee," December 15, 2017
  21. ↑ Twitter, "Marco Rubio," December 15, 2017
  22. ↑ Politico, "GOP wins Rubio's vote on tax bill with last-minute changes; Corker to also vote yes," December 15, 2017
  23. ↑ CNBC, "GOP releases its final tax plan — here's what's in it," December 15, 2017
  24. ↑ The Wall Street Journal, "GOP Tax Plan Summary Released -- Here Are the Headlines," December 15, 2017
  25. ↑ Portland Press Herald, "Sen. Collins says she will vote ‘yes’ on Republican tax bill," December 18, 2017
  26. ↑ Talking Points Memo, "BREAKING: McConnell’s Promise Nets Susan Collins’ Tax Bill Vote," December 18, 2017
  27. ↑ Clerk.House.gov, "Final Vote Results For Roll Call 692," December 19, 2017
  28. ↑ Twitter, "Donald J. Trump," December 19, 2017
  29. ↑ Real Clear Politics, "Paul Ryan: 'Profound' Change To Tax System, Americans Will See Larger Paychecks Beginning In February," December 19, 2017
  30. ↑ Twitter, "Nancy Pelosi," December 19, 2017
  31. ↑ The Washington Post, "GOP tax bill passes House as Senate plans vote for late Tuesday," December 19, 2017
  32. ↑ Roll Call, "Just One House Member Flips Vote on GOP Tax Overhaul," December 19, 2017
  33. ↑ Senate.gov, "On the Motion to Recede from the Senate Amendment to H.R. 1 and Concur with Further Amendment ," December 20, 2017
  34. ↑ CNN, "Sen. McCain returning to Arizona, will miss tax bill vote," December 17, 2017
  35. ↑ The New York Times, "Tax Bill Moves to Senate After House Passage Mostly Along Party Lines," December 19, 2017
  36. ↑ Chairwoman Louise M. Slaughter, U.S. House of Representatives Committee on Rules, "Summary of the Byrd Rule," accessed December 19, 2017
  37. ↑ Forbes, "Everything That's in the Senate Tax Reform Bill," November 9, 2017
  38. ↑ The Wall Street Journal, "Senate Tax Plan Differs From House on Individual Rates, Timing of Corporate Rate Cut," November 9, 2017
  39. ↑ The Hill,"Senate GOP tax bill will include repeal of ObamaCare mandate," November 14, 2017
  40. ↑ 40.0 40.1 Finance.Senate.gov, "Hatch Releases Modifications to Senate Tax Plan," November 14, 2017
  41. ↑ The Wall Street Journal, "First Highlights of Senate Finance Tax-Bill Changes," November 14, 2017
  42. ↑ The Hill, "Schumer: Dems won't back ObamaCare deal if it is tied to tax bill," November 15, 2017
  43. ↑ The Wall Street Journal, "House Passes GOP Bill to Overhaul Tax System," November 16, 2017
  44. ↑ The Hill, "Tax bill clears Senate Budget Committee," November 28, 2017
  45. ↑ 45.0 45.1 The Hill, "Senate GOP votes to begin debate on tax bill," November 29, 2017
  46. ↑ 46.0 46.1 46.2 46.3 The Hill, "GOP leaders win two key votes for tax legislation," December 1, 2017
  47. ↑ 47.0 47.1 47.2 47.3 The Wall Street Journal, "Republican Sen. Ron Johnson Opposes GOP Senate Tax Package," November 15, 2017
  48. ↑ The Hill, "Corker to vote no on GOP tax bill," December 1, 2017
  49. ↑ The Hill, "GOP senator demands tax reform be permanent, reduce deficit," October 4, 2017
  50. ↑ 50.0 50.1 Politico, "Senate GOP gets breathing room as tax plan advances," November 28, 2017
  51. ↑ Twitter, "Sen. Susan Collins," December 1, 2017
  52. ↑ 52.0 52.1 52.2 ABC News, "'This Week' Transcript 11-19-17: Sen. Susan Collins and Marc Short," November 19, 2017
  53. ↑ 53.0 53.1 53.2 53.3 53.4 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  54. ↑ The Hill, "Flake to back tax bill, giving GOP 50 votes," December 1, 2017
  55. ↑ 55.0 55.1 Flake.Senate.gov, "Flake Statement on Tax Reform," November 9, 2017
  56. ↑ The Hill, "Montana Republican opposes current version of tax bill," November 27, 2017
  57. ↑ Politico, "McCain to vote for GOP tax bill," November 30, 2017
  58. ↑ Axios, "McCain says he remains undecided on tax bill," November 27, 2017
  59. ↑ The Hill, "GOP senator will back tax bill with 'backstop' in case revenues fall short," November 29, 2017
  60. ↑ The Wall Street Journal, "Sen. James Lankford Says He’s Still Undecided on Tax Bill," November 15, 2017
  61. ↑ The Hill, "Murkowski will vote for tax bill," November 29, 2017
  62. ↑ 62.0 62.1 Daily News-Miner, "Alaskan senator supports free choice for health care," November 21, 2017
  63. ↑ Politico, "Murkowski says she backs Obamacare mandate repeal," November 21, 2017
  64. ↑ Twitter, "Chad Pergram," November 28, 2017
  65. ↑ Hays Post, "Big crowd shows up in small Kansas town to talk tax cuts with Moran," November 24, 2017
  66. ↑ Senate.gov, "On Passage of the Bill (H.R. 1 As Amended )," December 2, 2017
  67. ↑ The Hill, "Senate passes tax overhaul, securing major GOP victory," December 2, 2017
  68. ↑ The Hill, "Senate approves motion to go to tax conference," December 6, 2017
  69. ↑ The Hill, "McConnell names Senate GOP tax conferees," December 6, 2017
  70. ↑ CNN, "Your early look at the details of GOP tax cut proposal," November 2, 2017
  71. ↑ New York Times, "Republicans Release Tax Plan, Cutting Corporate and Middle-Class Taxes," November 2, 2017
  72. ↑ The Wall Street Journal, "House GOP Tax Plan Sticks With Big Corporate Cuts," November 2, 2017
  73. ↑ The Wall Street Journal, "What the Republican Tax Plan Means for You," November 2, 2017
  74. ↑ Bloomberg, "Republicans Seek Major Tax Changes, Opposition Begins to Form," November 2, 2017
  75. ↑ WaysandMeansforms.House.gov, “Summary of Chairman’s Amendment to the Amendment in the Nature of a Substitute H.R.1, Tax Cuts and Jobs Act,” November 6, 2017
  76. ↑ The Wall Street Journal, “Rep. Kevin Brady to Alter Tax Bill,” November 6, 2017
  77. ↑ The Wall Street Journal, "More Details From House GOP Chairman's Tax-Plan Revisions," November 9, 2017
  78. ↑ The Hill, "Brady offers amendment preserving adoption tax credit," November 9, 2017
  79. ↑ Reuters, "House committee passes sweeping tax bill," November 9, 2017
  80. ↑ Clerk.House.gov, "Final Vote Results For Roll Call 637," November 16, 2017
  81. ↑ Twitter, "Donald J. Trump," November 16, 2017
  82. ↑ The Hill, "House passes sweeping tax bill in huge victory for GOP," November 16, 2017
  83. ↑ The Hill, "House approves going to a conference committee with Senate on tax-cut bill," December 4, 2017
  84. ↑ The Hill, "Ryan picks his negotiating team for tax cut bill," December 4, 2017
  85. ↑ Senate.gov, "On the Concurrent Resolution (H. Con. Res. 71 As Amended)," October 19, 2017
  86. ↑ Senate.gov, "On the Concurrent Resolution (H. Con. Res. 71 As Amended)," October 19, 2017
  87. ↑ The Hill, "Senate narrowly passes 2018 budget, paving way for tax reform," October 19, 2017
  88. ↑ WhiteHouse.gov, "Statement Regarding Senate Passage of its Fiscal Year 2018 Budget Resolution," October 19, 2017
  89. ↑ Clerk.House.gov, "Final Vote Results For Roll Call 557," October 5, 2017
  90. ↑ Budget.House.gov, "House FY 18 Budget: Building A Better America," accessed October 5, 2017
  91. ↑ FairandSimple.GOP, "Tax Reform," accessed September 27, 2017
  92. ↑ CNN, "Details of GOP tax reform framework revealed," September 27, 2017
  93. ↑ New York Times, "Trump’s Tax Plan Cuts Rates for Individuals and Corporations and Eliminates Many Deductions," September 27, 2017
  94. ↑ Washington Post, "GOP proposes deep tax cuts, provides few details on how to pay for them," September 27, 2017
  95. ↑ WhiteHouse.gov, "Remarks by President Trump at Tax Reform Event," September 27, 2017
  96. ↑ WhiteHouse.gov, "Joint Statement on Tax Reform," July 27, 2017
  97. ↑ 97.0 97.1 97.2 CBS News, "Transcript: Paul Ryan on "Face the Nation," Oct. 1, 2017," October 1, 2017
  98. ↑ Washington Times, "Mitch McConnell: Tax reform must be revenue neutral," May 16, 2017
  99. ↑ 99.0 99.1 USA Today, "Trump team rolls out 'really big' tax cut package, but Congress is wary," April 26, 2017
  100. ↑ Chicago Tribune, "Trump plan would raise tax deductions, lower corporate and small business rates," April 25, 2017
  101. ↑ Breitbart, "Exclusive – Senator Rand Paul: Let’s Cut Taxes Now!" December 19, 2016
  102. ↑ The Hill, "Pelosi: GOP tax proposal 'the worst bill in the history' of Congress," December 4, 2017
  103. ↑ The Wall Street Journal, "Trump Says ‘No Change’ to 401(k) Plans Under Forthcoming Tax Proposal," October 23, 2017
  104. ↑ 104.0 104.1 NBC, "Democrats Demand Bipartisanship on Tax Reform," August 1, 2017
  105. ↑ 105.0 105.1 105.2 Business Insider, "'Voodoo economics on steroids': Democrats blast Trump's tax plan," April 26, 2017
  106. ↑ Representative Ted Lieu, "Rep. Lieu Statement on Trump's Tax Plan," April 26, 2017
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115th Congress, 2017-2018, Issues
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