By Josh Marshall December 9, 2018 12:09:10Many Republicans are not happy with the president’s response to Hurricane Maria, and the President’s administration is clearly struggling to keep up.
While President Trump has not done much to help the victims of the storm, he has taken action to help rebuild the economy and is in the process of moving some of the recovery money into his budget.
The President’s budget proposes a $1.9 trillion tax cut, which would cut taxes for corporations and individuals across the board, while also providing a $5 billion boost for hurricane relief.
However, many Republicans are unhappy with this proposal.
The House of Representatives has already passed a $2.1 trillion tax plan that would cut tax rates across the Board by nearly 40 percent and would also include a massive $1 trillion boost for Hurricane Harvey relief, according to a new report from The Hill.
The GOP-led Senate has yet to act on the President and House Republicans are also expected to not move forward with a $4.1 billion tax cut.
With Trump’s approval ratings in the low single digits, Republicans in the House are still pushing him to pass his proposed tax plan, which is expected to pass easily and pass with overwhelming majorities.
House Speaker Paul Ryan (R-WI) has said that the GOP tax plan will “help American families, the American economy and American families are going to be better off,” according to The Hill, which adds that the House plan will also “make the American people more confident about their future.”
However, the Speaker said that a “big part of the job of the President is making sure that people know that there are policies that are in the plan that will benefit them, and that the policies that we put forward will actually help the American workers.”
A tax cut is a good thing, but the House Republican tax plan is not in the best interests of American workers.
According to The Associated Press, the tax plan would benefit only those making more than $200,000 a year and would increase the deficit by $2,500 for the middle class.
According to The Wall Street Journal, the plan would increase taxes on low-income Americans and corporations by more than half, and would further slash tax credits for businesses.
However, Republicans argue that the bill would be good for business.
“If we’re going to cut taxes, then we need to be able to cut corporate taxes,” Representative Mark Meadows (R) told the Wall Street Times.
“I think that’s the most important thing that we’re doing.”
According to the Tax Policy Center, “the biggest losers under the House tax bill would disproportionately be households earning less than $100,000, which are the very people that need tax cuts the most.”
The GOP tax proposal would also cut federal aid to public schools by nearly half, with only a $25 billion increase in the education budget over the next decade.
A majority of Republicans oppose the elimination of the State Children’s Health Insurance Program, which currently provides $1,300 per family per year in grants to states that expand Medicaid.
Many of these provisions would be a boon to businesses, as well.
“The most significant benefit to small businesses and companies that operate in high-tax states will come from the elimination or reduction of the tax on capital gains and dividends and the elimination tax on net investment income,” the Tax Foundation’s Matt Miller said in a statement.
The Tax Foundation estimated that this could lead to $500 billion in new economic activity over the following decade.
A key reason for the lack of support for the House GOP tax package is that it would eliminate the child tax credit, which has long been a major component of the Republican tax reform.
The deduction allows many working families to deduct the cost of child care and food expenses.
According the Tax Institute, “a single parent working full time at $70,000 will receive $6,500 in tax credits, which can offset the cost or provide an extra $4,000 in child care expenses.
By contrast, a parent working part time at about $50,000 who also takes care of their child will only receive $1 in child tax credits.
The child tax benefit has been a pillar of the Trump agenda.”
The Trump administration is currently working to pass its tax bill through the House, but there are several major hurdles that the White House and its allies need to clear before it passes the Senate.
One of these is that the Senate is set to vote on the legislation on December 15.