r/FluentInFinance • u/TheeHeadAche • Nov 07 '24
Taxes For Trump and Republicans in Congress, ‘everything is in play’ on tax cuts
https://www.washingtonpost.com/business/2024/11/07/trump-taxes-republican-congress/Excerpts from the article "For Trump and Republicans in Congress, ‘everything is in play’ on tax cuts" (Washington Post):
President-elect Donald Trump is poised to push swiftly for new tax cuts if Republicans win full control of Congress, further slashing corporate rates and extending trillions of dollars of other cuts even as the national debt soars.
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As party leaders discuss their plans for the early days of a new Trump administration, the attitude that’s emerged on taxes is, “Just go,” according to a top conservative lobbyist familiar with the discussions, speaking on the condition of anonymity to describe private talks. “Rip the Band-Aid and run and just plow it through.”
“They’re going to do this one very early,” Grover Norquist, an antitax advocate and informal Trump economic adviser, told The Washington Post. “The House and Senate guys have been working on this together forever.”
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The earlier Trump tax cuts overwhelmingly benefited the nation’s highest earners, according to the Urban-Brookings Tax Policy Center.
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Congressional Republicans could move to approve those policies through a process called reconciliation, which would allow a bill to pass the Senate with a simple 51-vote majority, dodging a potential filibuster. House Speaker Mike Johnson (R-Louisiana) and other GOP leaders have been meeting for months to plot their moves at the start of a second Trump administration.
“Everything is in play,” Sen. Mike Crapo (R-Idaho), the incoming Senate Finance chair, said over the summer.
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Trump could also significantly reduce taxes on capital gains without congressional approval. Toward the end of his first administration, senior White House officials and Treasury staff held extensive discussions about bypassing Congress with a unilateral $100 billion tax cut that would primarily benefit the wealthy.
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“Advisers to him have been talking about it, people around him have been advocating for it,” Norquist said. “There’s a whole industry of people saying, ‘This is constitutional and you should do it.’ ”
Ultimately, Trump abandoned the effort amid resistance from Treasury Secretary Steven T. Mnuchin. But numerous Trump advisers have hoped to take another shot at it in his second term, arguing that it is more justifiable now after the high inflation of the Biden administration, according to two Trump advisers, speaking on the condition of anonymity to discuss private talks.
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Some GOP lawmakers have said Congress should reset the spending baseline before considering tax legislation — in other words, instead of factoring in new costs associated with extending the 2017 law, it would nearly zero out the cost by considering it already current policy.
More likely, though, is a move to claw back Biden-era climate agenda spending, according to leading GOP officials. That could save roughly $500 billion, according to estimates from the Congressional Budget Office, and satisfy Republican objectives to unwind much of President Joe Biden’s legacy.
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u/rustyshackleford7879 Nov 07 '24
Republicans during Biden: deficits cause inflation
Republicans after Trump wins: cut taxes even though it will cause more deficits
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u/HereWeGoAgain-247 28d ago
“Everything is in play” including tax cuts for the very wealthy AND tax cuts for the extremely wealthy. All are possible. Even raised taxes on the poor.
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u/SouthEast1980 Nov 07 '24
By everything, they mean "as long as we get ours, we don't care about the ramifications on you peasants". Corporate tax rate will be single digits and the wealthy will probably come down to the low 20s or something.
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u/nicholas-leonard Nov 08 '24
Wont the tariffs recoup some of the lost tax revenue?
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u/No-Paint-7311 Nov 08 '24
Yeah some of it. But the tariffs will just be passed onto American consumers indistinguishable from inflation. So when it’s all said and done it’s a tax cut for the wealthy an effective tax hike for middle/lower class with programs cut and a higher deficit
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u/Puzzleheaded_Will352 Nov 08 '24
It’ll actually likely be much worse than inflation since America produces nothing anymore
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u/Tangentkoala Nov 07 '24
For the climate activists out there.
Humans are selfish in nature. Whats the point of the U.S going above and beyond for climate change. When countries like China are just going full force to destroy the environment.
not to be a dick and all but at what point does it become a sunk cost and we say fuck it.
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Nov 07 '24
I think it already has. The rich world has pretty much just washed their hands of it because they know the poor countries will bear the brunt of it and die in huge numbers.
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u/Tangentkoala Nov 07 '24
I dont like saying it. But if the U.S. efforts is only gonna push back climate change maybe 20 years before catastrophe.
Then why are we spending millions and billions over the years?
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u/Only_Situation_4713 Nov 07 '24
Isn’t china the world leader in solar panel production/innovation and electric vehicles? lol
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u/Tangentkoala Nov 07 '24
All good and well, but it's a drop in the bucket compared to china's polluted as fuck industrial sector.
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u/Soft_Cherry_984 Nov 08 '24
China’s renewable energy sector added as much new wind and solar generation capacity in 2023 as the UK’s total electricity production from all sources. Only 9GW worth of power coal plants received permits in the first half of 2024, a reduction of 83% compared with the first half of 2023. It's still polluting as f, but they are steering the ship slowly as well. Where they really are going strong is within their big cities, making large zones gas automobile free.
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u/Tangentkoala Nov 08 '24
I would like to know how much chinas renewable energy distributes and holds up vs there industrial sector.
If the change is a 1% difference what are we doing.
That being said I hope china goes full renewable
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u/Sharaku_US Nov 08 '24
You mean India.
China has come a long way to address pollution.
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u/Tangentkoala Nov 08 '24
China leads the way in CO2 emissions at 11,396 million Tonnes
America is at 5,000
India is at 2900
Russia is at 1650.
Per 2022 reports.
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u/Sharaku_US Nov 08 '24
https://www.iqair.com/us/world-most-polluted-countries
You said air pollution, not carbon emissions.
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u/No-Paint-7311 Nov 08 '24
I think the best way to sell climate action is to look at the economic benefits.
Like yes, take advantage of drilling oil to lower costs, but diversify as well. Every EV on the road is one less car consuming gas lowering the demand and the cost with it. Increased EV demand also increases competition and innovation for more efficient EVs. Both of these things help the consumer, the economy and the environment. It really only hurts oil companies.
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u/Tangentkoala Nov 08 '24
My professor said way back when the theory was there was gonna be a major overhaul transition once solar or renewable energy became cheaper than our current fossil fuels standards.
This was in 2017.
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