10-26-2017, 07:56 PM
The budget approval today was definitely good news for Trump and the administration.
As I understand it............it means there's no chance of Democratic congresspersons blocking his tax reform bill.......so long as he can get the required Republican votes to pass it.
President Trump has gone back and forth about whether that bill would halt or seriously scale back non-taxed 401k savings. Doing either one in order to minimize lost revenue resulting from the proposed tax cuts could affect a lot of middle class and upper middle class earners and prevent some Republican lawmakers from getting on board.
The draft tax reform plan also disallows state/local tax deductions on federal returns (which is a big deal for some of the people in the states where it's currently allowed). I think that could keep some Republicans in congress from voting in favor of the plan, but suspect Trump and company would probably roll over on that one.
Plus, reducing government revenue without cutting spending and thereby increasing deficit spending......is not something most Republicans would have approved in the past. Trump and his spokespeople are saying something to the effect that lower personal and corporate taxes is going to generate more activity and tax potential, but I don't think that's been detailed, quantified or released yet.
It'll be interesting to see how it turns out. I would like a tax cut and more money in my pocket as much as anyone else. But, not at the cost of important federal projects, economic stability, and assistance to those who need it most.
As I understand it............it means there's no chance of Democratic congresspersons blocking his tax reform bill.......so long as he can get the required Republican votes to pass it.
President Trump has gone back and forth about whether that bill would halt or seriously scale back non-taxed 401k savings. Doing either one in order to minimize lost revenue resulting from the proposed tax cuts could affect a lot of middle class and upper middle class earners and prevent some Republican lawmakers from getting on board.
The draft tax reform plan also disallows state/local tax deductions on federal returns (which is a big deal for some of the people in the states where it's currently allowed). I think that could keep some Republicans in congress from voting in favor of the plan, but suspect Trump and company would probably roll over on that one.
Plus, reducing government revenue without cutting spending and thereby increasing deficit spending......is not something most Republicans would have approved in the past. Trump and his spokespeople are saying something to the effect that lower personal and corporate taxes is going to generate more activity and tax potential, but I don't think that's been detailed, quantified or released yet.
It'll be interesting to see how it turns out. I would like a tax cut and more money in my pocket as much as anyone else. But, not at the cost of important federal projects, economic stability, and assistance to those who need it most.