President Donald Trump and congressional Republicans are negotiating a tax package that a budget watchdog group estimated could cost anywhere from $5 trillion to $11.2 trillion over the next decade.
A series of tax policy changes that Trump supports appear to have broad support among Republicans in Congress. The Committee for a Responsible Federal Budget has released a study that projects the cost of each item over a 10-year period. The possible tax changes are expected to be included in a budget reconciliation package, which allows the GOP to bypass the filibuster in the Senate, where they lack a 60-vote threshold. It is unclear at this time if the tax provisions will be passed in one large reconciliation bill or as part of a two-bill approach.
According to the CRFB, extending the Tax Cuts and Jobs Act, Trump’s 2017 tax reform package, would cost between $3.9 trillion and $4.8 trillion.
By the numbers
Under the CRFB study, expanding the State and Local Tax deduction (SALT) would cost from $200 billion to $1.2 trillion.
- Eliminating taxes on tips, which Trump campaigned heavily on enacting, would result in a $100 billion to $550 billion reduction in federal tax revenue, according to the study;
- Exempting overtime pay from federal taxes would cost $250 billion up to $3.0 trillion;
- Exempting Social Security benefits from federal taxes would cost between $550 billion and $1.5 trillion;
- Lowering taxes for U.S. production of certain goods would cost between $100 billion and $200 billion;
- Reducing tax benefits for stadium owners and ending the carried interest loophole would save about $100 billion, according to the group. […]
— Read More: justthenews.com
