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Tax reform in the next big agenda issue for the White House and Republicans. The new healthcare push has pushed the release of some of the key points and details of the tax reform package on the back burner until Obamacare is repealed or the Republicans efforts are finally put to rest.
The tax reform package is most surely going to include tax cuts for businesses and possibly to the individual’s rates. In terms of the details of the individual tax cuts, the current seven brackets would be collapsed into three: paying 35%, 25% and 12%. The Republicans package would lower the corporate tax rate from 35% to 15%. And possibly eliminate the Estate Tax.
The White House is doing more to engage conservatives. The White House has been hosting conservative groups in order to get them on board early, so there is not a collapse from the base, like the April House Healthcare vote. However, many senate republicans, like Senate Finance Chairman Orrin Hatch, are claiming that the “Big Six” tax reform details will be advisory and that the senate is likely to change things up.
With the WH wanting Tax Reform done before the years’ end, or early 2018, Senate Republicans will try to prioritize the big tax issues. However, with the plethora of ideas in the Republican’s conference on taxes, the issue may lag until the second quarter of 2018, just months before the midterms, rumor is the plan will look like this:
Current seven income tax brackets collapsed to three
At National we will continue to engage on this issue, communicating real developments as they take place – and helping our members see through the smoke and mirrors DC intrigue played out on the national stage.