Washington – The Trump administration and Republicans in Congress are seeking to make temporary personal income tax cuts passed last year permanent, White House spokesman Raj Shah said on Thursday, adding they could also lower capital gains tax rates.
Subscribe to our Daily Roundup Email
Shah, in an interview on Fox Business Network, said details were still being worked out on a potential second tax cut bill that would follow the massive $1.5 trillion legislation that took effect in January.
That tax package, the largest such overhaul since the 1980s, reduced the tax burden for most individuals starting this year but set them to expire after 2025.
“We want to make the personal income tax cuts in the first tax cut bill permanent. They’ve talked about potentially lowering the capital gains rate,” Shah said.
Republicans, who control both chambers of Congress, passed the sweeping overhaul in late December, handing Trump his first major legislative win ahead of the November midterm elections. Democrats decried it as a giveaway to the wealthy that will widen the income gap between rich and poor, while adding to the nation’s $20 trillion national debt.
Still, any follow-on proposal is likely to take a while, with Congress pressed to pass a government budget bill before funding runs out March 23 and lawmakers eager to hit the campaign trail ahead of the Nov. 6 vote.
“We don’t have specifics regarding an actual proposal or a timeline just yet,” Shah said, adding that the White House would wait for the arrival of Larry Kudlow, incoming director of the White House national economic council.
Trump announced Kudlow as his choice for top economic adviser earlier on Thursday, replacing Gary Cohn who resigned last week.
MUELLER HAS SUBPOENED TRUMPF ORG FOR RUSSIA DOCS. THE ORG IS HIS FAMILY BIZ THAT HAS KNOWN $$ DEALS W RUSSIA. TRUMPF SAID SO IN TV INTERVIEW. DID RUSSIA $$ GO INTO CAMPAIGN OR INTO DIRTY TRICKS VS ELECTION?
The tax law would be require tremendous bigly loan payments to our grandchildren. Yuge!
What happened to our fiscally responsible Congress? Especially the deficit hawks?
As I posted months ago. People were concerned that the personal cuts were only temporary and set to expire. That was just an accounting gimmick to keep the costs under the 1.5 limit. No politician will let taxes rise under them. Those cuts are here to stay.
And while not 100% certain, I’d venture to say, the SALT that everyone is kvetching about will rise to 20k very soon too.
Someone posted a scenario on vin recently dipicting the horrors of the tax cut without really doing the math and realizing how wrong he is .
The scenario : a frum family in 5 towns with 4 kids earning 150k. And a property tax of 18,000 plus state income tax summing up to about 25k
Here is a benefit comparison
Old tax bill
SALT: 25k deduction = 6k savings
Standard exemption := 24k= 6k savings
Child tax credit : 2k ( its 1k per child but once income exceeds 110k the credit gets reduced . In this instance it’s reduced by 2k .And if you earned 190k you’d get nothing )
Total tax return benefit = 14k
Under new tax plan
SALT= 10k= 2,500 benefit
Tax rate cut of 3%= 4,500
Child tax credit = 8k ( new income limit is 400k and you get 2k pet child )
Total benefit = 15k .
You walk out ahead under new bill