DreamHost

TARGET: Save with the Red Card!

Subscribe

Enter your email address:

Delivered by FeedBurner

Green Apps

ITUNES TV AND MOVIES

Categories

Burpee Gardening

Whole House Water Filter

PINGO

Soft Phone Banner

RE USE IT!

ReUseIt.com

Natural Mosquito Control

10% Off Mosquito Magnet Accessories - Use Code MMACCTEN

FTC Disclosure

Green Reflection may receive remuneration from the advertisers on this site.

Accounting ‘Gimmicks’ in G.O.P.’s Tax Overhaul Mask Higher Cost, Deficit Hawks Say

NYT

Such sleights of hand in accounting are more prevalent in the Senate plan, which makes many of its cuts temporary or delays their enforcement. For instance, the Senate bill delays the corporate tax cut, which will fall to 20 percent from 35 percent, by one year for savings of about $100 billion. It also saves about $240 billion by making the individual income tax cuts “temporary” and setting them to expire in 2025.Other tax breaks are phased in slowly or phased out. Businesses are allowed to fully expense only their capital investments, including equipment purchases, through 2022. And, beginning in 2024, the ability to carry net operating losses forward would be limited as a percent of taxable income. In 2026, research and experimental expenditures would have to be written off gradually, or amortized, rather than immediately deducted, which reduces the revenue hit to the federal budget.According the nonpartisan Committee for a Responsible Federal Budget, the real cost of the Senate legislation that the Joint Committee on Taxation says will cost $1.41 trillion over a decade would be $2.2 trillion if all the temporary changes were made permanent. The group estimates that the nation’s debt, which has surpassed $20 trillion, would exceed the size of the economy by 2028 under the plan — a level the United States has not reached since World War II.Republican leaders in Congress and the Trump administration have acknowledged the budget maneuvers, saying they expect the temporary tax cuts to stay in place.“As a result of the reconciliation process and scoring and the Byrd Rule, there are certain parts of this that expire,” the Treasury secretary, Steven Mnuchin, said on CNBC on Friday. “But we have every expectation that down the road that Congress will extend them.” The Byrd rule refers to restrictions put in place by former Senator Robert C. Byrd of West Virginia that prevent legislation that adds to the deficit in the long-term.To deficit hawks, underselling the true cost of tax cuts is counterproductive and potentially dangerous for the economy.Newsletter Sign UpContinue reading the main storyThank you for subscribing.An error has occurred. Please try again later.You are already subscribed to this email.View all New York Times newsletters.“The gimmicks not only damage the bill’s fiscal credibility but damage the bill’s objectives at the same time,” said Michael A

More here:
Accounting ‘Gimmicks’ in G.O.P.’s Tax Overhaul Mask Higher Cost, Deficit Hawks Say

Comments are closed.