taxes

Opinion: Avoiding Another ‘Brownbackistan’
Tax cuts in Kansas led to an economic train wreck

Kansas Governor Sam Brownback’s tax cuts are a cautionary tale for Washington lawmakers who are hitting the gas to get a tax reform package completed by the end of the year without paying much attention to details, Patricia Murphy writes. (Andrew Burton/Getty Images)

“Economic gold rush? Or fiscal wreck?” That was the question the Kansas City Star asked on May 23, 2012, the day after Gov. Sam Brownback signed a sweeping series of state tax cuts into law. Five years later, the Kansas tax cuts are looking a lot more train wreck than gold rush, with a $900 million deficit and Brownback’s fellow Republicans stepping in to reverse the cuts he pushed.

Kansas also offers an awfully timely cautionary tale for Washington lawmakers, who are hitting the gas on getting a tax reform package — any tax reform package — done by the end of the year in order to chalk at least one win on the board for 2017, but who don’t seem to be sweating the details just yet.

Capitol Ink | Tax Cut Recruitment Poster

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Rep. Jim Jordan: House GOP Tax Bill Expected to Be Released Next Week
Former Freedom Caucus chairman says caucus members support accelerated timetable

Ohio Rep. Jim Jordan, here walking down the House steps in the rain earlier this month, said a House GOP tax bill is expected to be released next week. (Bill Clark/CQ Roll Call)

A House Republican tax bill is expected to be released next week, marked up the following week and brought to the floor the week after that, Ohio GOP Rep. Jim Jordan said Monday night.

The former Freedom Caucus chairman said he and other members of the hard-line conservative caucus will support the Senate budget resolution that the House is expected to vote on Thursday, thanks to assurances that the tax bill will move under that accelerated timetable.

Podcast: Don't Pop the Champagne Just Yet on Tax Overhaul
Budget Tracker Extra, Episode 36

From left, Speaker of the House Paul Ryan, R-Wis., Senate Finance Committee chairman Orrin Hatch, R-Utah, and Senate Majority Leader Mitch McConnell, R-Ky.  (Photo By Bill Clark/CQ Roll Call)

Republicans hailed their budget resolution as the key to unlocking a tax code overhaul, but history suggests a partisan tax bill could still face a rocky road, as CQ Budget editor Peter Cohn explains.

Trump Breaks With GOP Over 401(k) Changes in Tax Bill
President to Twitter followers: ‘NO change to your 401(k)’

President Donald Trump speaks to the media before departing from the White House last month. On Monday, he put down a marker on tax reform, and again broke with his fellow Republicans. (Mark Wilson/Getty Images file photo)

President Donald Trump further complicated Republicans’ quest to find agreement on a package of tax rate cuts and code changes, breaking with his party by tweeting Monday that he wants the 401(k) system left unchanged.

The popular retirement program allows employees to save a slice of their paychecks before taxes are withdrawn; taxes are eventually paid, but not for years until the money is withdrawn, typically after that employee has reached retirement age.

Republicans Use Past Democratic Tax Proposals as Ammo
Supportive Democrats eyed for current tax effort

Republicans are pointing out that Senate Minority Leader Charles E. Schumer, among other Democrats, previously supported aspects of a still-developing GOP tax plan. (Tom Williams/CQ Roll Call)

Senate Republicans have a new strategy to attack Democrats on a still developing tax measure: using past legislation against them.

The campaign could be successful. Some Democrats say the GOP argument makes sense, and several say they are open to the possibility of supporting a final tax bill.

Graham Pitches Minimum Wage Hike as Part of Tax Overhaul Effort
Suggests raising the wage to $10.10 with business tax cuts

Sen. Lindsey Graham, R-S.C.,wants to cut taxes and raise the minimum wage. (Bill Clark/CQ Roll Call File Photo)

One Republican senator has an unusual idea for ensuring that the effort to overhaul the tax code benefits among the poorest working Americans.

Sen. Lindsey Graham plans to propose tying an increase in the federal minimum wage to the tax overhaul package.

Tax Bill Will Include 4th Tax Bracket on High-Income Earners, Ryan Says
Republicans’ tax framework had left the possibility open, but speaker suggests decision is to add one

Speaker Paul Ryan, R-Wis., said the tax overhaul bill  will include a fourth income tax bracket for high-income earners. (Tom Williams/CQ Roll Call file photo)

Speaker Paul D. Ryan said Friday that an upcoming tax overhaul bill will include a fourth income tax bracket for high-income earners, but he declined to reveal what the tax rate for that bracket will be. 

“The fourth bracket that the president and others are talking about that we’re going to do, we’re working on those numbers,” the Wisconsin Republican said on “CBS This Morning.” He added later in the interview that numbers “are going to be finalized in a matter of days.”

Trump Predicts Paul Will Vote for Tax Cut Bill
Senator and president trade tweets, with Paul endorsing 'boldest' cuts possible

President Trump says Sen. Rand Paul will vote for the coming tax overhaul bill despite being the only Republican who voted against a GOP budget resolution on Thursday night . (Bill Clark/CQ Roll Call file photo)

Updated at 8:42 a.m. | While celebrating Senate passage of a fiscal 2018 budget resolution, President Donald Trump on Friday predicted the GOP holdout on that bill will vote for a follow-on tax measure.

The Senate on Thursday night adopted a budget measure altered as the final vote approached to allow House Republicans to adopt it and avoid a conference committee. The move is an attempt to get a final package of tax cuts and code changes to Trump’s desk faster.

Don’t Hike Deficits With Tax Package, Ads Warn GOP Senators
Collins, Corker among lawmakers targeted

A new group launched ads this week urging Republicans in 20 states, including Sen. Susan Collins of Maine, not to raise deficits as they seek to revise the tax code. (Tom Williams/CQ Roll Call)

Texas billionaires John and Laura Arnold are bankrolling a new lobbying effort aimed at leading lawmakers away from the temptation of a tax overhaul that would increase deficits. 

Citizens for Responsible Tax Reform launched print advertisements targeting Republicans in 20 states Thursday, including Kentucky, the home of Senate Majority Leader Mitch McConnell and Sen. Rand Paul. The group plans additional television and online ad buys as Congress and the White House debate an overhaul of the nation’s tax code, spokesman Blake Gober said.