New Tax Bill
The revised tax bill proposed by the Trump Administration on September 27th is already facing opposition from top Democrats and many media outlets while being praised by conservative branches of his party. The Republican proposal for new tax laws was quietly unveiled last week. Some of the major provisions outlined in the bill are a large cut to the corporate tax rate and a lowering of the tax rate currently imposed on earners in the top bracket. The bill in its current form is more of a rough outline than a comprehensive piece of legislation, and many in both parties have not yet thrown their support or opposition towards it. Nonetheless, Democratic leadership has been widely critical of the proposed cuts. In contrast, the bill has gained the support of the Conservative Freedom Caucus, which Trump has found notoriously hard to win over in his many legislative battles. Before even taking office Trump made many promises to overhaul legislation regarding taxes and simplify the filing process, with Democrats opposing him at every step of the way.
Many media outlets and pundits have brought into question how the broad cuts to be seen by corporations and high earners will be compensated for in the rest of the tax base, and which group will be taking on the burden. In addition to the cuts for large corporations and their benefactors, the bill has special provisions to lower the marginal tax rate for small and midsize businesses. These vast cuts have understandably raised concerns over the long-term impact to the budget, with many forecasting a drastic increase to the federal deficit. Speaker of the House Paul Ryan has defended the bill against criticism, saying that the bill will largely benefit middle-class Americans, and will not increase the national debt. The goal of cuts outlined in the bill is the fostering of greater economic growth which in turn is intended to reduce the deficit according to Speaker Ryan. The bill faces a long battle ahead as the president struggles to win bipartisan support. Trump corroborated Ryan’s claims, saying that the tax bill will protect low and middle income households, not enrich the wealthy. Debate will be ongoing as the bill is developed further.