Republicans Passed a $1.5 trillion Payoff to Their Donors

After weeks of late night revisions and rushed votes, congressional Republicans have passed the final version of the Tax Cuts and Jobs Act. Here are a few of the most egregious aspects of the bill that made the final cut:

  • The #CorkerKickback.
    • This provision would allow income on real estate LLCs to be taxed at a lower rate. It was added during the reconciliation process, and Sen. Bob Corker (R-TN), who was previously a ‘no’ vote, changed his mind following it’s inclusion. It could save the senator up to $1 million in taxes.
  • Limiting of the SALT deduction.
  • Doubling of the estate tax exemption.
    • Although Trump campaigned on a promise to remove the tax altogether, the bill doubles the exemption, with estates worth $11 million for a single person, or $22 million for a couple, now being subject to the tax.
  • Repeal of the individual mandate.
    • In order to produce $300 billion to offset the costs of tax cuts for the wealthy, the Republicans have included a repeal of the individual mandate. Around 13 million people will be without healthcare as a result, according to estimates from the Congressional Budget Office.
  • Changes to the Child Tax Credit (CTC).
    • The CTC was doubled from $1,000 to $2,000, and its refundability was increased from $1,100 to $1,400. 1 in 3 American children in working-class households would see only a partial increase in their CTC refund, while households making $500,000 a year are now phased in.
  • Top individual tax rate is lowered.
    • The top bracket, which previously paid taxes at a rate of 39.6%, will see their rate go down to 37%.
  • Corporate tax rate is decreased.

All that’s left for this historically unpopular, $1.5 trillion bill to become law is a signature from the President. It will be Trump’s first major piece of legislation, and quite possibly the undoing of the Republican party come November 6, 2018.

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