Tax Reform Bill Delayed, Discord within GOP

1122
SHARE

Some House Republicans, growing frustrated, started to draw parallels to their party’s failed Obamacare repeal bid. “Anything that gets done in a cloak of secrecy is certainly not what an open and deliberative body should do,” said Mark Meadows (R-N.C.). This seemed to be a reference to how Obamacare repeal was executed.

Who’s Paying for What?

There is much confusion about how proposed tax cuts will be paid for. Any bill that’s not deficit neutral will likely face intense opposition within the party. House Ways and Means Chairmen Kevin Brady has proposed pushing people out of 401(k) retirement accounts. Instead, as Brady wants, people will put their savings in Roth accounts which tax those contributions as they happen. This may end up feeling like a tax increase to many people, who will be thinking about what effects their wallet in the short term.

Another proposal that’s sure to stoke controversy is to add extra taxes to foreign firms operating in the U.S. This raises the threat of tax retaliation from other countries.