Experts are starting to find massive errors in the GOP tax bill after it went through Congress at lightning speed

Experts are starting to find massive errors in the GOP tax bill after it went through Congress at lightning speed

House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell. Susan Walsh/AP images

  Dec. 6, 2017, 3:49 PM

 

  • Republicans in the House and Senate passed their versions of the tax bill at breakneck speed.
  • Experts are now finding errors and loopholes in those versions.
  • Members of a conference committee have been tasked with solving these issues and writing a compromise bill.

As Republicans hurtle toward making their massive tax plan into law, experts are starting to find a slew of errors they say are most likely the result of a rushed process.

Republicans have argued that the plan is the culmination of years of work. But the resulting bill has moved through both chambers of Congress at legislative light speed.

The House passed its version of the bill, named the Tax Cuts and Jobs Act, two weeks after rolling it out. The Senate got its version through in three weeks — including one off for Thanksgiving.

Given the breakneck speed and last-minute dealmaking — Senate Republicans were making handwritten changes to the bill hours before passing it — it’s no surprise that experts have discovered complications in the immediate aftermath of the legislation’s passage.

Perhaps the biggest is in the Senate bill, which at the last minute kept intact the corporate alternative minimum tax.

The change was so sudden that some experts say the nonpartisan Joint Committee on Taxation, Congress’ official scorekeeper, may have understated its potential effect.

Lily Batchelder, a tax-law professor at New York University who was formerly a deputy director of the National Economic Council, tweeted on Tuesday that any change to the corporate AMT would significantly affect revenue.

Batchelder said that repealing the corporate AMT could cause a revenue shortfall of an additional $300 billion. That would force Republicans to find more revenue in other places — through taking away deductions or increasing rates, for example — to fit their tax bill into a specific budget window.

That’s not the only error

Politico’s Brian Faler noted that the bill would impose a new tax on university endowments but does not define them. Universities with large financial holdings have multiple accounts to generate income, but unclear which of those would qualify for the new tax.

Experts also noticed issues with the bill’s treatment of pass-through businesses and with a one-time tax on foreign profits of multinational corporations after the legislation passed.

Republicans are now convening a conference committee — made up of members of both chambers, mostly from the tax-bill-writing House Ways and Means and Senate Finance committees — to hash out differences in the versions of the bill and work out the errors.

From there, the House and Senate would vote on the compromise bill. It is unclear how quickly that would happen, but House Speaker Paul Ryan said on Wednesday that the GOP was aiming to have tax legislation on President Donald Trump’s desk by Christmas.

Newsletter signup
< 2018 >
April
  • 19

    6:00 pm-8:30 pm
    04/19/2018
    Coffee Carts
    1061 Rosman Hwy, Brevard, NC 28712, USA

    Community Compost Raising

    You have heard of a barn raising.
    Join us for a community drop-off
    compost raising!

    When: April 19th at 6 pm

    Where: Coffee Carts
    1061 Rosman Hwy, Brevard, NC

    Hosted by: Moving to Conservers

    All are welcome! Please join us!

    We will be constructing a community
    compost drop-off site at Coffee Carts
    and celebrate with a community potluck!
    Bring a dish to share and your own
    non-disposable place setting. This is
    a zero-waste event.

    For more information email jbwkjc@gmail.com

  • 28

    8:00 am-12:00 pm
    04/28/2018

    The annual spring plant sale by the Transylvania Master Gardeners, The Transylvania Garden Club, The French Broad Garden Club and the Heritage Museum will be held Saturday, April 28, from 8 a.m. until noon at the Brevard Ingles parking lot on Asheville Highway. This will be the second year in this location and it allows very easy access and plenty of parking for customers.

    The annual plant sale raises funds to support gardening and landscape projects throughout Transylvania Count including the Master Gardeners projects including those at Silvermont and the Pisgah Ranger Station and scholarships provided by the garden clubs.

    Come early for the best selection from a large variety of high quality, locally raised perennials, annuals, vegetables, trees and shrubs. Local gardeners also will be on hand to offer advice.

    The plant sale takes place rain or shine. Admission is free.

    For more information, contact the Transylvania County Extension office, (828) 884-3109 or mmickew@ncsu.edu.

Subscribe to NC General Assembly news

Receive emails from the NC General Assembly on legislative actions by subscribing here:  http://www.ncleg.net/calendars/calendars.html#Subscribe

RSS US House Activity Excerpt

  • H.R.2905
    Justice for Victims of IRS Scams and Identity Theft Act of 2017 (04/18/2018 legislative day)
  • H.R.5444
    Taxpayer First Act (04/18/2018 legislative day)
  • H.R.5445
    21st Century IRS Act (04/18/2018 legislative day)
  • H.Res.831
    Providing for consideration of the bill (H.R. 5444) to amend the Internal Revenue Code of 1986 to modernize and improve the Internal Revenue Service, and for other purposes, and providing for consideration of the bill (H.R. 5445) to amend the Internal Revenue Code of 1986 to improve cybersecurity and taxpayer identity protection, and modernize the […]

RSS US Senate Activity Excerpt

  • S.J.Res.57
    A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by Bureau of Consumer Financial Protection relating to "Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act". (04/18/2018 legislative day)
  • S.140
    A bill to amend the White Mountain Apache Tribe Water Rights Quantification Act of 2010 to clarify the use of amounts in the WMAT Settlement Fund. (04/18/2018 legislative day)
  • PN1359
    James Bridenstine, of Oklahoma, to be Administrator of the National Aeronautics and Space Administration, vice Charles F. Bolden, Jr., resigned. (04/18/2018 legislative day)
  • PN568
    Carlos G. Muniz, of Florida, to be General Counsel, Department of Education, vice James Cole, Jr. (04/18/2018 legislative day)
  • S.Res.426
    A resolution supporting the goals of International Women's Day. (04/18/2018 legislative day)

Pin It on Pinterest

Share This