In the interview, he said “I think not having the estate tax recognizes the people that are investing,” Grassley (R-Iowa) told the Des Moines Register, “as opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies.”
“Republicans have long attacked the estate tax, often referring to it as the “death tax,” and their various tax plans would greatly scale it back or eliminate it. The tax is based on the transfer of property when someone dies, if an estate exceeds a certain amount. The Des Moines Register report determined that few family farmers or small business owners end up having to pay the estate tax and those who do pay are rarely forced to sell their land or quit farming.”“The Senate’s plan, which passed early Saturday morning (12/2/17), expands the individual exemption to $11 million per person, while the House plan would expand the exemption by the same amount but also eliminate the tax entirely in 2024. That is one difference in the bills that would have to be reconciled as the legislation moves forward.”
“The damage this bill could do to the country is extensive, but so is the political damage the GOP will face for passing it in the face of so much resistance.”
On November 17, 2017, Alicia Parlapiano of the New York Times penned the following report, Would the Poor Pay More Under the G.O.P. Tax Plan? Senators Disagree, and Here’s Why.
Excerpts:
“Republicans called it misleading, saying that the increases reflect tax credits that would no longer be claimed because of the repeal of the Affordable Care Act’s individual mandate, the requirement to buy health insurance.”
“Congress’s Joint Committee on Taxation (Conservative leaning resource favored by republicans), which published the report, released a separate analysis that does not include the effects of the repeal.”
“The reason that estimated tax rates are higher when the repeal is considered is because without a requirement to purchase health insurance, many would choose not to buy coverage. As a result, those without insurance would forgo the federal tax credits available to subsidize their insurance premiums.”
“Republicans, and some tax experts, say the choice to not take a tax credit is not an increase in tax burden and therefore should not be considered a tax increase.”
“Without the effects of the A.C.A. changes, average tax rates would initially fall for all income groups under the Senate plan. But the individual tax cuts are temporary, expiring at the end of 2025 in order to keep the plan within budget limits under Senate rules. (Corporate tax cuts in the bill do not expire, which explains the differences after 2025.)”
“Even if analysis that includes the effects of the individual mandate repeal overstates the tax increase that low-income people would face, it leaves out other consequences of the repeal.”
The Congressional Budget Office projects that premiums would rise by 10 percent for most years over the next decade, and some middle-income households who do not qualify for premium subsidies would drop their plans because they would no longer be able to afford insurance.
Link to NY Times article graphs: Would the Poor Pay More Under the G.O.P. Tax Plan? Senators ..
Gronda Morin 