By all accounts, passing tax reform/cuts is the top Republican legislative priority right now. But even though GOPers almost unanimously agree that something needs to be done about the labyrinthine, anti-growth, anti-investment tax code, hashing out the details of that “something” is complicated. For instance: Politico yesterday ran a piece that ostensibly showed the Trump administration-GOP congress “Big Six” negotiators making progress on a bill. From the story:
There is broad consensus, according to five sources familiar with the behind-the-scenes talks, on some of the best ways to pay for cutting both the individual and corporate tax rates. The options include capping the mortgage interest deduction for homeowners; scrapping people’s ability to deduct state and local taxes; and eliminating businesses’ ability to deduct interest, while also phasing in so-called full expensing for small businesses that allows them to immediately deduct investments like new equipment or facilities. . . . One idea quietly being discussed would be taxing the money that workers place into their 401(k) savings plans up front: an idea that would raise billions of dollars in the short-term and is pulled from the Camp plan. This policy idea is widely disliked by budget hawks, who consider it a gimmick; the financial services industry that handles retirement savings; and nonprofits that try to encourage Americans to save.