Republican lawmakers in the House have been working behind closed doors to introduce their self-proclaimed landmark Tax Bill. As late as Tuesday afternoon, few details were available publicly as to what exactly would be in the bill that is set to be unveiled Wednesday, an artificial deadline.
The specifics that have begun to come out include allowing the deduction of property taxes but eliminating the deductions for state and local income taxes, continuing the controversial plan to lower the top end of 401(k) contributions, shifting tax brackets, raising the limit on the estate tax rather than fully eliminating it as previously planned, and making some cuts temporary with the idea that future legislation would continue them.
The stock conservative argument for tax cuts has always been that they will boost the economy by freeing up money to the free market rather than being used for government services. The Tax Policy Center, using the previously released “Unified Framework” that Republican lawmakers have presented as their expected plan for the Tax Bill, indicates that while this plan may create new economic activity in the short term, those gains would be soon overcome by higher budget deficits due to the lower federal tax revenue. This analysis may change in the coming days as the details are presented from the House.
Update: As the self-imposed deadline approached, House Republicans did not have a bill ready to be revealed and have pushed back the release to Thursday.