H. R. 6760, Protecting Family and Small Business Tax Cuts Act of 2018.

This bill amends the Internal Revenue Code to make permanent several tax provisions that were enacted in 2017 and are scheduled to expire at the end of 2025.

The bill makes permanent provisions that:

  • reduce individual tax rates,
  • modify the taxation of the unearned income of children,
  • allow a deduction for qualified business income of pass-through entities,
  • increase the standard deduction,
  • increase and modify the child tax credit,
  • increase the limitation for certain charitable contributions,
  • allow additional contributions to ABLE accounts (tax-favored accounts designed to enable individuals with disabilities to save for and pay for disability-related expenses),
  • allow certain members of the Armed Forces in the Sinai Peninsula of Egypt to receive combat zone tax benefits,
  • exclude from gross income discharges of student loan debt due to the death or disability of the student,
  • repeal the deduction for personal exemptions,
  • limit individual deductions for state and local taxes,
  • limit the mortgage interest deduction,
  • double the estate and gift tax exemption amount,
  • increase the alternative minimum tax exemption amount for individuals, and
  • repeal or limit several other deductions and exclusions.

The bill also:

  • extends through 2020 the reduction in the adjusted gross income threshold for the medical expense deduction,
  • modifies the capital gains tax brackets, and
  • modifies tax filing requirements for married taxpayers.

NOTE: Two of the five Minnesota DFL Representatives voted opposite Jason Lewis (Representatives Walz, Ellison, and Nolan did note vote), as did 179 other Dems in the House. We therefore regard Lewis’s vote as being against progressive values.

Why This Bill Is Against Our Values:

“H. R. 6760: (Source: Dissenting View from Committee Report 115-958, See the end of the report)

  • Just like the Tax Cut and Jobs Act of 2017, no hearings with experts or constituents were held and no amendments were approved. “The Democratic staff has identified over 100 mistakes and other problems with the Republicans’ tax law.”
  • “…extended the section 199A pass-through deduction which Republicans claimed would benefit small business and spur economic growth. Instead, section 199A is a massive giveaway to millionaires. In fact, 58 percent of the benefit of the Republicans’ so-called small business tax benefit goes to millionaires.”
  • “Republicans have doubled down on their attack on the middle class by attempting to make permanent the limits to the State and Local Tax Deduction. Republicans rejected the opportunity to restore fairness in our tax system for more tax- payers that are now facing double taxation as a result of Republican tax policy choices.”
  • “The Republicans call themselves fiscal conservatives but nothing could be further from the truth. History doesn’t lie and now we’re seeing it again with the addition of more than $3 trillion to the nation’s debt.”

The staff of the Joint Committee on Taxation (JCT) estimates that enacting the bill would reduce revenues by about $597 billion over the 2019-2028 period, and increase outlays by $34 billion over the same period, leading to an increase in the deficit of $631 billion over the next 10 years. A portion of the changes in revenues would be from Social Security payroll taxes, which are off-budget. Excluding the estimated $687 million increase in off-budget revenues over the next 10 years, JCT estimates that H.R. 6760 would increase on-budget deficits by about $632 billion over the period from 2019 to 2028. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues. (Source: Congressional Budget Office)

Taxes would decline on average across all income groups, but higher income households would generally receive larger average tax cuts as a percentage of after-tax income. (Source: Urban Institute and Brookings Institution)

More Info See Bill

 

2018-09-30T11:08:55+00:00