A hundred years from now historians looking back on the Trump presidency may view December 20, 2017 as one of the most significant event in his time in office. The Republican lead House and Senate passed a sweeping and pro-growth tax reform that will shape the economy for years to come.
Here are a few highlights of the bill (complete summary here):
- Corporate rates are cut from 35 to 21%. This will energize small and large businesses to invest more money into the economy and hire more employees (and give raises to current employees). Already we are seeing AT&T lead the way. And other companies who have so much of their capital parked overseas to avoid the high tax rate will be bringing some of that back into this country. We are likely to see an economic boom just from this alone.
- Just about everyone will receive a tax cut as seven of the tax brackets will change. And you could see the effect on your paycheck as early as February. Details of the changes can be found here.
- The individual mandate for Obamacare is repealed and will no longer be in effect in January 2019. This was brilliant strategy by the Republicans because Judge Roberts had declared the individual mandate a tax and in doing so it opened it up for changes or repeal through the legislative process as Tom Cotton explains:
“The Obamacare mandate was held by the Supreme Court to be tax. Whatever philosophical positions you may have had before that, that’s the law of the land,” said Sen. Tom Cotton, Arkansas Republican, who spearheaded efforts to undo it in the tax bill.
It’s also the heart of Obamacare. And [repeal] allows us to pay for more tax cuts for working families and businesses that create jobs in this country, while at the same time avoiding a very punitive tax that falls squarely on working families and poor people,” he said.
Democrats that in 2012 praised John Roberts are now howling. I doubt they’ll be sending him any Christmas cards. I think it is perfect justice.
- Puts a cap of what can be written off for the cost of state and local taxes. I think this is another brilliant strategy because it will expose the high tax rates imposed by states like California and New York.
- Also puts a cap on Mortgage Interest Deduction at 750,000. And in a twist of Twilight Zone proportions, Diane Fenstein actually criticized Republicans over this cap because it would hurt the ultra-rich!
The Republican tax bill caps the mortgage interest deduction at $750,000 for new mortgages. In California, seven counties have average home prices that are more than $750,000: Alameda, Marin, Orange, San Francisco, San Mateo, Santa Clara and Santa Cruz counties. #GOPTaxScam
- And one of my favorites, it opens up the Artic National Wildlife Refuge (ANWR) for exploration! When the radical environmentalists hear about this, heads will explode. I would not want to be the person to break this news to Al Gore! National Geographic is already out with their doom and gloom Somewhere Sara Palin is smiling.
Probably the most outrageous response to the tax reform (so far, as the Hollywood left hasn’t made a PSA on it yet) was from Nancy Pelosi:
“This GOP tax scam is simply theft, monumental, brazen theft from the American middle class and from every person who aspires to reach it,” Pelosi said. “The GOP tax scam is not a vote for an investment in growth or jobs. It is a vote to install a permanent plutocracy in our nation. They’ll be cheering that later. It does violence to the vision of our Founders”.
Would those be the same founding fathers the left called racist earlier this summer?
President Trump held a victory celebration this afternoon with the passage of this bill. This is a major milestone and wonderful Christmas gift to the American people. And it should give the Republicans momentum going into the mid-term elections. Can they keep it going?
I know I am not tired of winning!