11-29-2017, 12:59 PM
(11-29-2017, 09:45 AM)Belsnickel Wrote: JCT could release their markup of the Senate bill as early as tonight. This will be what makes or breaks the bill, I believe. A lot of the lawmakers that are waffling on what they are going to do will use the JCT report to give them some guidance. Or at least that is my hope on things. I know it can seem silly to think that our elected officials will do the sensible thing in this political environment, but I still hold out hope.
The most unbelievable thing to me is that one Senator said they could keep the state tax deduction if the corporate rate was only lowered to 22% instead of 20%.
That's just mind-boggling. The corporate rate is going to be a good bit lower than 20%, anyway, because a lot of deductions still remain. The marginal corporate rate DOES matter, and I believe the average effective rate close to 27% is fairly uncompetitive....but cutting to 22% (with the effective rate a good bit lower) would be extremely competitive.
Or - it's crazy I know - since the wealthy are going to benefit from a significant cut in corporate taxes, you could INSTEAD offset that with a higher top bracket for personal income tax (or cap gains).
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