Trump's first legislative victory: increase by 1.4 trillion deficit to pay the rich benefit the middle class

In mid-November, the US House of Representatives passed House version of tax reform。 And the next, lawmakers need to address the issue of the distinction between the two versions of the bill passed by the Senate and the House of Representatives passed a bill last month。 Is expected next week, on behalf of the House and Senate will begin to address differences between the two versions, come up with a final bill presented to Trump。
If all goes well, Trump will formally sign the bill at the end of this year。
Senate Republican tax reform plan after the victory, Trump congratulated on social media: from achieving massive tax cuts for working families across the United States, we are a step closer。 We look forward to signing the final tax reform bill before Christmas。
The main provisions of the bill through the House and Senate versions of tax reform are the same, the corporate tax rate will be reduced from 35% to 20%, personal income tax, a tax was reduced from seven-speed fourth gear, were 12%, 25 %, 35% and%。
Tax standard deduction almost doubled, while significantly cutting taxes deductible items。 But in order to get more voting (especially in the Senate), we made changes to some of the details。
For example, the Senate version, began to implement the new rates point in time is 2019, delayed by a year than the House version。
The final version will be an important issue in the 2018 congressional elections。 In addition, the Senate version, only temporarily implement tax cuts for individuals, beginning in 2026, individual tax relief will stop。
Tax reform bill vote before the end of the morning, which also reflects in the Senate encountered layers hinder not be underestimated。 Later Thursday afternoon, senators said the automatic tax increase "trigger" mechanism that provision does not comply with the rules of the Senate。 The so-called "trigger" mechanism, that is, after the implementation of tax reform, if economic growth does not lead to excessive or increased federal deficit, then it will automatically increase taxes。 It is worth mentioning that this is not a Democrat vote in favor, but because of the number of Senate Republicans and Democrats ratio of 52-48, Democrats failed to stop the passage of the bill even if united。 The only one to vote against the Republicans is to "trigger" mechanism dissenting Bob Corker。 Will benefit the rich, the middle class to buy documents Xinhua News Agency reported November 17, Center for Policy Research think tank, the tax authority announced in Washington, said: "Most of the income tax cuts, either in dollar terms or in terms of the proportion of after-tax income, are obtained by high-income families。
"Research shows that in 2027 nearly 50% of the tax benefits will be exclusive to the wealthy class 1%。 At the same time, due to some reduction items will gradually expire in the future, as well as many tax deductions project was canceled, not everyone will get a tax cut。
According to the Tax Policy Center analysis, 2018 (Senate version of tax reform time is 2019) the United States will increase by at least 7% of the tax burden of taxpayers, and by 2027 will rise to 25%。
"" Gray Rhino ": When a high probability of how to deal with the crisis," a book of American financial writer Michael Walker accepted the surging News interview that the number of studies have shown that the final pay will continue to be middle class, and rich people will get tax cuts。
Although a number of studies have shown that the rich are more likely to benefit from the new tax, but the rich who do not buy it。 According to People November 16 report, including the "financial giant," Soros, including the 400 richest Americans sent a letter to the US Congress, expressed opposition to the Republican tax reform plan。 The letter noted that "urge greater inequality of you oppose this bill," "We are deeply worried about the loss of revenue will allow the government spending on education, health care and other vital services slashed, which would weaken the state and national community reinvestment ability"。 Tax cuts will increase the government revenue of $ one trillion yuan deficit reduction, increased fiscal deficits, it is another focus of controversy in the tax reform bill。 The bill is expected to reduce government revenue of about $ 10 trillion in coming years。 However, the Senate has long been preparing for this, according to Xinhua News Agency reported, the Senate on October 19 through the fiscal year 2018 federal budget resolution allowing the next decade, the US budget deficit increased by $ trillion, lay the foundation for tax reform legislation。
According to First Financial reports, November 22, Deputy Minister of Finance Zhu Guangyao 2017 speech at the forum, said on Sina Kirin, shine on the forum said that tax reform will be the US economy will produce what kind of impact?Trillion in tax breaks, what kind of impact on the US tax?What kind of impact on the US deficit balance?We should pay close attention。
According to the US debt clock display, the current US debt has more than a trillion dollars, the average American to afford the $ million, or $ 170,000 per taxpayer burden。 And Trump's massive tax cuts, will further increase the debt burden of Americans。
According to First Financial reported, but the Republicans had expected, bring incremental tax cuts planned economy can make up new deficit。 However, tax policy research center report said the tax reform plan to bring economic growth to cash $ 169 billion in tax revenue over the next 10 years。 Accordingly, the tax losses of up to a trillion dollars, that is, the net deficit of $ trillion。 The report also believes that the House version of the tax reform program to promote the role of the US economy unsustainable, 2018, will make the US gross domestic product (GDP) additional percentage point increase to 2027 will fall back to points。 Once the impact of the economy into recession, tax cuts bring greater。 According to the Wall Street knowledge reports, the outgoing Chairman of November 30 at the congressional hearing said that for the surge in public debt worries。
Yellen said: I simply say that I am the sustainability of the US debt trajectory is very worried。 We are currently about 75% of the debt / GDP levels, while not frightening, but not low。
Such a thing should be to get people awake at night。 The day before, the next Fed chairman Powell said Yellen and his predecessor are worried about the growth of debt, which he deeply felt。 The Congressional Budget Office (CBO) data show that in 2027, tax cuts would lead to the US debt will account% of GDP, higher than the current Congressional Budget Office forecast%。 Daily comprehensive news Bloomberg, Xinhua News Agency, surging News, First Financial, Wall Street knowledge, etc.。

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