Tax & Accounting News

Republicans Reportedly Drop Tax Cut for Wealthy in Revised Healthcare Bill

by
Lee Reams II
on
7/10/2017
Republicans Reportedly Drop Tax Cut for Wealthy in Revised Healthcare Bill

According to reports in Bloomberg and The Hill, the latest ObamaCare repeal and replace bill will be released this Thursday and eliminate the tax cuts for the wealthy. The 3.8 percent net investment income tax and .9% payroll tax will remain. Whether this change will gather enough votes is still to be seen. Maine Senator Susan Collins remarked, "I will say that from my perspective it is not sufficient to just make minor changes in the bill. Tweaks are not to be sufficient to win my support."

The Republicans hold a slim majority of 52-48 in the Senate. There have been reports that the Senate will delay the August recess as Republican leadership tries to catch up on backed up legislation. The Hill reported the new summer recess deadline will be August 14. This delay gives Senators more time to negotiate and try to bring some consensus between party members.

US Secretary of the Treasury Steven Mnuchin reiterated on This Week with George Stephanopoulos that "we're absolutely committed to getting tax reform done this year.” It would seem that healthcare would need to come first and the tax issue finalized before significant tax reform can take place. This includes the promise by Mnuchin that "this will be tax reform and tax cuts, and we expect that the plan will be fully paid for.”

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Lee Reams II

Lee Reams II

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